MPs are calling for a delay in the introduction of the Retail Distribution Review (RDR) proposals that will see a ban on commission on advised sales, and higher professional standards for independent financial advisers. The proposals are due to come into force on 1st January 2013 but the Commons Treasury Committee is advocating a year’s [...]
The Bank of England and the Financial Services Authority (FSA) have published a joint paper on the Prudential Regulation Authority’s (PRA’s) approach to insurance supervision. The PRA will be responsible for the prudential supervision of over 2,000 firms, of which around half will be insurers. On current data, it will regulate 636 general insurers (around [...]
The Financial Services Authority (FSA) has issued a warning to consumers over pension unlocking schemes, saying that they should be treated with “extreme caution”. Normally, money can only be taken from a pension when the plan holder is aged 55 or over, but pension unlocking schemes claim to allow individuals to gain access to money [...]
In its 2010/11 Annual Report, published yesterday, the Financial Services Authority (FSA) comments that delays to the timeline for Solvency II have affected its own consultation process and shortened the window for implementation. As a result, the regulator is looking for ways to manage the “uncertainty”, while continuing to contribute to the development of the [...]
The British Insurance Brokers’ Association (BIBA) has presented a 7,000 signature-strong petition to Parliament regarding the funding of the Financial Services Compensation Scheme (FSCS). BIBA argues that the increase in FSCS levies on insurance brokers during the last three years has been caused by the failures of credit brokers, who have mis-sold payment protection insurance. [...]
The Association of British Insurers (ABI) has welcomed the Financial Services Authority’s (FSA) proposed guidance for price comparison websites that sell general insurance. The ABI produced voluntary good practice guidance in 2009, and the FSA is now asking firms to: Review their regulated activities, ensure they are appropriately authorised or otherwise exempt. Ensure they only [...]
A rise in demand for financial products for the risk adverse has led the Financial Services Authority (FSA) to review the market and draw up new rules on product descriptions. The regulator’s latest quarterly consultation paper proposes that firms using terms such as “guaranteed”, “protected” or “secure” should include in their promotional material explanations of [...]
The Financial Services Authority (FSA) has confirmed an increase to the limit on awards made by the Financial Ombudsman Service, from £100,000 to £150,000. The regulator has also confirmed new complaints handling rules which include: The abolition of the “two-stage” complaints handling rule to make sure firms resolve complaints fairly and do not dismiss them [...]
The British Bankers’ Association (BBA) will not be appealing against April’s High Court judgment regarding banks’ handling of Payment Protection Insurance (PPI) complaints. Following a judicial review of the Financial Services Authority (FSA) and Financial Ombudsman Service, the BBA had been given until 10th May to appeal against a ruling in favour of new FSA [...]
KPMG is warning that delays to the finalisation of Omnibus 2 are impacting the Solvency II timeline, increasing fears that neither insurers nor regulators may be fully prepared for implementation on 1st January 2013. According to the financial services firm, under the original draft of Omnibus 2, the European Insurance and Occupational Pensions Authority (EIOPA) [...]
The Association of British Insurers (ABI) is calling for a “balanced approach” by the Financial Services Authority (FSA) on product regulation. It wants a mode that reflects the diversity of UK retail financial services markets and suggests the FSA should focus on effective supervision and the enforcement of existing rules on treating customers fairly, rather [...]
The British Insurance Brokers’ Association (BIBA) is arguing that the regulatory burden imposed on the UK insurance broking sector is a greater competitive disadvantage than the amount of corporation tax it pays. Research from BIBA claims the current regime is “disproportionate and inappropriate” with costs for brokers in the UK currently three times higher than [...]
The Financial Services Authority (FSA) will be adopting a two-tier approach to assessing insurers’ new capital models under Solvency II, The Financial Times has reported. According to the newspaper, the FSA’s head of insurance, Julian Adams, told an industry conference on Monday that the regulator will be focusing on larger insurers as resources will be [...]
New research from the Association of British Insurers (ABI) indicates that over a half of Britons may not be prepared to pay for financial advice. Furthermore, a third of people questioned think such advice would be worth less than £300, although full advice currently costs £670, on average. While the ABI says it is behind [...]
