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Daily Insurance Industry News
Wednesday 25th of April 2018
December 12, 2007

FSA Announce Changes For Complaints Forms

by Stewart Douglas

Story link: FSA Announce Changes For Complaints Forms

The Financial Services Authority, the regulator of all financial activity in the UK, has today announced it is to embark on a process of simplification across its official documents required to be completed by brokers in the light of complaints against providers of insurance policy cover.

At present brokers are required to complete labour intensive documentation twice a year surrounding complaints and retail mediation activities in order to comply with regulations, which the FSA has announced it is to cut back by a significant proportion in order to lighten the load for insurance intermediaries.

The simplification will occur across the retail mediation activities return and the complaints return, and it is thought it will be cut back by 30% and 80% when new procedures are introduces at the instance of the Financial Services Authority.

The Financial Services Authority had said that the changes will allow it to apply data from brokers more readily in order to monitor problem areas and streamline committments from insurance firms, by announcing it intended “to monitor and mitigate risks to its statutory objectives and, importantly, reduce the administrative burden on firms in completing these returns”.

The complaints return will be brought in in time for the 1 August next year, which is designed to allow certain service providers to emplace the necessary infrastructural support to facilitate the changeover.

The RMAR will be brought into force from the beginning of October next year, again providing sufficient time for brokers to adapt their operative strategies to account for the changes in legal requirements.

It remains to be seen whether the new forms will have the required effect of improving efficiency and reducing the burden on insurance intermediaries on an annual basis.

 

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