Lloyd’s Market Association guide on FCA Pricing & Product Reviews
Lloyd’s Market Association issues updated guidance on FCA Pricing Practices and Product Reviews
The LMA has issued updated guidance on the forthcoming FCA Pricing Practices rules and associated Product Reviews. The new rules require carriers to provide information on most products, including features, target market and those whom the product is not likely to be suitable for. There is also a reciprocal requirement for intermediaries to report details of remuneration (including fees and commission) throughout the distribution chain.
The LMA has worked closely with the ABI, BIBA, IUA, LIIBA and MGAA to agree a standard template for information sharing which has been included within the updated guidance.
BIBA has stated that, working together, the trade associations representing the general insurance market have produced a template ‘fair value’ product assessment form that may be used by all market participants to meet the requirements under the Financial Conduct Authority’s new product governance rules.
We suggest any Lloyd’s & London Market associated firms take the time to view the updated guidance and review the useful manufacturer/distributor information sharing template. The Fair Value assessment template mentioned by BIBA on its web page is available to BIBA members on its website.