The Financial Conduct Authority (FCA) has expressed disappointment that a material proportion of pure protection manufacturers and distributors have failed to adequately comply with Policy Statement 21/5, which set out new rules on insurance pricing and enhanced product governance.
As a result, the regulator said it must now act to prevent "significant harm" being caused to customers through the withdrawal of products from distribution, due to distributors being unable to comply with the regulatory changes before the October 2022 deadline. Distributors who qualify will be given a three-month extension until 1 January 2023 to comply with the new rules and, in the meantime, will be able to continue distributing existing non-investment insurance products. The circumstance for an extension only applies to distributors who have identified the impact that the distribu...
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