The FCA 2020/2021 Perimeter Report

October 2021

The FCA’s 2020/2021 Perimeter Report sets out a wide range of issues and planned initiatives across a variety of industry sectors.  Some of these (highlighted in Section 5 of the Report) may be of particular interest to UKGI clients.

Appointed Representatives (ARs)

Outsourcing and third-party service providers

Business interruption insurance

The general insurance perimeter

Alongside all the above, and more widely where regulated firms also conduct unregulated activities (especially those activities that might closely resemble regulated activities), the FCA is concerned that customers may be misled and harmed by the “halo effect” from a regulated entity and/or similar regulated products, in that the customer may assume that the unregulated products will benefit from the same FOS and FSCS protections as the regulated products that such firms offer.

Firms which have Appointed Representatives or Introducer Appointed Representatives, firms which use outsourced / third-party service providers and general insurance firms which accept business from unauthorised introducers should review these elements of the Report.

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