Tweet
On 3rd March 2016 the Financial Conduct Authority announced investigations into six firms as a result of its thematic review into the fair treatment of longstanding customers.The FCA has today announced that the investigation into Police Mutual has been closed with no further action. The investigations into Scottish Widows, Prudential, Countrywide Assured, Old Mutual*and Abbey Life are continuing and no decisions regarding these firms have been reached by the FCA at this stage. No inferences should be drawn from the closure of the Police Mutual case concerning the continuing investigations. The FCA will update the market when decisions are made regarding the status of the remaining investigations.
https://www.fca.org.uk/news/statemen...stomers-review
Regards
https://www.fca.org.uk/news/statemen...stomers-review
Regards
The FCA’s thematic review assessed the treatment of closed-book customers against four high level customer outcomes:
Does the firm’s strategy and governance framework result in the fair treatment of closed-book customers;
Do the firm’s closed-book customers receive clear and timely communications about policy features at regular intervals and key points in the product lifecycle that enable them to make informed decisions;
Does the firm give adequate consideration to, and take proper account of, fund performance and policy values in a way that ensures it treats its closed-book customers fairly and proportionately; and
Are the firm’s closed-book customers able to move from products that are no longer meeting their needs in a fair and reasonable manner.
The review did not assess how individual policies were originally sold but focused on how customers are being treated now.
Tracey McDermott, acting Chief Executive of the FCA said:
“Given the long-term nature of closed-book products, it is vital that customers are treated fairly and given the right information on an ongoing basis in order to help them make important financial decisions. We expect all firms with closed-book customers to take into account the findings we have published today and ensure they are treating their closed-book customers fairly.”
“The practices at some firms appear to have been poor. We have particular concerns regarding how some firms communicated with their customers about exit and/or paid-up charges. We are now doing further work to understand the reasons for these practices, whether customers may have suffered detriment as a result and, if so, how widespread these issues are.”
Does the firm’s strategy and governance framework result in the fair treatment of closed-book customers;
Do the firm’s closed-book customers receive clear and timely communications about policy features at regular intervals and key points in the product lifecycle that enable them to make informed decisions;
Does the firm give adequate consideration to, and take proper account of, fund performance and policy values in a way that ensures it treats its closed-book customers fairly and proportionately; and
Are the firm’s closed-book customers able to move from products that are no longer meeting their needs in a fair and reasonable manner.
The review did not assess how individual policies were originally sold but focused on how customers are being treated now.
Tracey McDermott, acting Chief Executive of the FCA said:
“Given the long-term nature of closed-book products, it is vital that customers are treated fairly and given the right information on an ongoing basis in order to help them make important financial decisions. We expect all firms with closed-book customers to take into account the findings we have published today and ensure they are treating their closed-book customers fairly.”
“The practices at some firms appear to have been poor. We have particular concerns regarding how some firms communicated with their customers about exit and/or paid-up charges. We are now doing further work to understand the reasons for these practices, whether customers may have suffered detriment as a result and, if so, how widespread these issues are.”
