A Happy New Year to you. It is just over two weeks into 2020 and the FCA has already fired warning shots on its focus for this year.
In a letter to the insurance market, the FCA set out its priorities for the year. We have noted that there is a big focus on areas where intermediaries are operating a Delegated Authorities or MGA model. If you are in this position, please be aware that the FCA might have a keen eye on you this year.
Below are the key priorities for the Regulator’s work in 2020:
- Poor oversight of, and remuneration practices in distribution chains
- Risk of consumers being provided with unsuitable or poor quality products
- Poor pricing practices
- Ineffective management of regulatory change
- Poor operational controls
Please ensure you add these to your Compliance Plan and consider ways of checking you are meeting the FCA’s requirements. We will provide more information on these areas in the upcoming weeks.
Please note: If you are a member of our compliance services, you won’t need to do anything as these areas will be added to your Compliance Plan for 2020.
