So 2020 is finally behind us and we can all agree it was a different kind of year. 2021 is set to be a busy year for FCA Regulation for the following reasons:
- The hangover from Covid-19 is still being felt, and is expected to last the whole year;
- Most of 2020’s FCA rules were pushed into 2021 because of Covid-19; and
- 2021’s FCA work and rules will still have to be implemented.
We recently did a training session on our forecast of 2021. Here is a snapshot of what insurance brokers should expect:
| Date | Topic | Points to note | |
| 1 | January 21 | Brexit | This may mean changes to the way you do business for those with EU exposure. |
| 2 | January 21 | Value measures rules | There are new reporting requirements depending on whether your insurance products are now classified as under the ‘value measures rules’. |
| 3 | January 21 | New product governance rules | New requirements for how you document the products you sell and how these are checked for their value to your target customers. |
| 4 | March 21 | SMCR full implementation | SMCR Certified regime implementation was postponed due to Covid-19, and so full implementation of all SMCR is expected by March 21. |
| 5 | March 21 | New FCA Directory of Certified persons | A new FCA Directory is being set up by the FCA and will need information from your business. |
| 6 | April 21 | New Travel Insurance PEMC rules | There are new rules for all brokers selling travel insurance and how they signpost for customers with pre-existing medical conditions (PEMCs). |
| 7 | Jun – Oct 21 | Dual pricing changes | New rules are due to be issued in June 21 and the FCA expects these to be implemented by Oct 21. |
| 8 | Ongoing | Covid-19 | Ongoing detail and guidance to be issued around dealing with customers and policies affected by Covid-19. |
| 9 | Ongoing | Client money | This is an area of focus for the FCA in 2021, with Inspire Insurance recently struck-off for client money failings. |
| 10 | Ongoing | Compliance, governance and oversight | Noted by the FCA’s recent Dear CEO letter- the key to this is documentation, documentation, documentation. |
| 11 | Ongoing | RegDATA | The FCA will be moving brokers from GABRIEL to RegDATA to help the Regulator analyse your business better. |
| 12 | Ongoing | Vulnerable persons | The FCA has estimated that up to half of UK adults may now be in the vulnerable category” – so will be focusing on how brokers are ensuring Compliance with these types of clients. |
| 13 | Ongoing | Insurance Distribution Directive (IDD) | Review of the level of IDD compliance in the market. |
If you are not quite sure where you stand in all these areas, we can help by providing a Horizon Scan of your business. My Virtual Compliance has been at the forefront of Compliance help, to ensure insurance brokers know how to navigate through these difficult times.
Our Horizon Scan creates a high-level view of possible GAPs in your business and where to direct your efforts.
For more information, ‘Click Here’ to ask about our free Horizon Scan, to help you plan for 2021.
