Firms falling short on renewal expectations
In October 2017, the UK Financial Conduct Authority (FCA) revealed that it has been monitoring how firms have implemented the consumer renewal disclosure rules, which came into force in April 2017.
Although examples of good practice were observed, the regulator found instances where firms ‘obscured’ the required transparency information or failed to give it sufficient prominence. It has also observed some firms extending their ‘shopping around’ message to suggest that the broker has already done that work for the customer, as well as the failure to treat some policies which ‘expire’ as renewals, even though they could be carried forward for a further year.
The FCA has now asked several firms to re-contact customers, to clarify renewal information retrospectively and made it clear that it will continue to monitor this area of compliance and intervene where necessary.
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