1st May 2020

The Financial Conduct Authority (FCA) has published draft guidance proposals designed to provide customers with temporary support in the light of the Coronavirus (Covid-19) pandemic.  The proposed guidance applies to regulated firms operating in the insurance and premium finance markets.

It sets out the FCA’s expectations for firms when dealing with customers of general insurance and pure protection contracts who may be experiencing temporary financial difficulty as a result of the pandemic. It is not intended to have any relevance in other circumstances (for example customers in financial difficulty which pre-dates coronavirus, where existing forbearance rules apply).

Members may access the short guidance by clicking here.

This guidance will apply to customers that fall within the definition of an eligible complainant, so will draw in arrangements that are wider than those covered by the Consumer Credit Act.

The proposed guidance is subject to a very short period of consultation with the FCA seeking responses by 5.00pm on Tuesday 5th May 2020.  If confirmed, the measures will apply shortly after 5th May.  Once implemented the FCA will review this guidance in three months in the light of developments regarding Coronavirus and may revise the guidance if appropriate.

BIBA will be preparing a formal response to the consultation.  Members are asked to submit their views today (1st May) or over the weekend to David Sparkes at [email protected].

BIBA members’ compliance and regulation queries should be directed to: [email protected].


Become a BIBA member

Membership that gives you more. We help support, protect, represent and promote brokers. Our experienced and dedicated team are here to help you!

Find out more