FCA GI Consumer Duty and Multi-Occupancy - Branko

Perth & Dundee Institute is delighted to welcome back Branko, a recognised industry expert, to update us on Consumer Duty, fair value and multi-occupancy.

We’ve had Consumer Duty for a year and firms will have completed their first annual board reports. On 20 February 2024, the FCA updated the sector with the following:-

“What firms are doing well and what they could do better. The Consumer Duty came into force for open products and services on 31 July 2023. We welcome the improvements made by many firms to deliver better outcomes for their customers. However, some firms are lagging behind. Under the Duty, firms must act to deliver good outcomes for retail customers. Firms should aim to continuously address issues that risk causing consumer harm. We have committed to highlight good practice and areas for improvement.”

Further on 21 August 2024 they published a further Thematic Review (TR24/2) where they said:-

“Insurers need to make sure their customers are getting fair value. Progress is being made, but we are still seeing too many examples of insurers and brokers lacking the right information, governance, or oversight to ensure their customers get consistently good outcomes. All insurance firms should take note of our findings and make improvements where appropriate. We’ll continue to take action where we see poor value so consumers can have confidence when buying insurance products.”

The session will also provide and update on fair value assessments to include what makes up broker commissions and how to ensure broker costs are fully understood.

We will also look at the new rules on multi-occupancy buildings insurances following intervention by the government – these impact over 5 million leaseholders who are defined as stakeholders and firms have to also act in their best interests. Insurers and brokers will also need to provide information about policies to leaseholders, including details of all remuneration and placement. We will also cover the requirements imposed by the new Leasehold and Freehold Reform Act which will ban commission sharing.