AM Online

FSA in the spotlight: Good and not so good news

First the good news. The Retail Mediation Activities Return (RMAR) is being reviewed and the consultative paper (a mere 174 pages) published by the FSA is indicating that some of the irritating and unnecessary information required is being removed and the Return will be shorter.

Regrettably the opportunity has not been taken to make the Return specific for firms selling general insurance or secondary intermediaries such as motor dealerships.

The new rules are likely in December and will take effect from the third quarter 2008.

In addition, ICOB (Insurance Conduct of Business) rules are being rewritten. The consultation period ends on September 28th and final rules are due in December for implementation in 2008.

Now the not so good news. The FSA has completed its round of thematic visits to car dealerships, finance houses and motor manufacturers on the selling of payment protection insurance (PPI).

The “jungle drums” are indicating that the FSA is losing patience with firms that, after nearly three years into FSA regulation, are still not fulfilling the regulatory requirements. FSA identified the problems with the selling of PPI in 2005 and 2006 and has publicly censured two motor dealerships.

It is understood a number of businesses in the motor trade will be receiving letters from the FSA.

The critical issues continue to be to make sure your sales process is robust and correct and that you are appropriately identifying demands and needs if you are making advised sales.

Dealers not feeling confident about their sales process or who have questions or problems with meeting requirements can email or call Alliance on 0845 2262970.

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