FCA publishes new webpage for insurance mediation firms

Earlier today, on 19 March 2020, the FCA published a new webpage for insurance mediation firms setting out its expectations for firms in light of the coronavirus pandemic.

In essence, the FCA expects firms to comply with the Principles for Businesses (including Principle 6: TCF). But the FCA also sets out its expectation of firms when varying its terms (which apply not just to insurance firms).

The FCA says it expects firms to consider the following if they intend to vary their contract terms:

– Whether there is a written term in the contract that states they are able to make the change that they want to make.

– Are the terms that they intend to rely upon fair and transparent under the Consumer Rights Act 2015 (or the Unfair Terms in Consumer Contracts Regulations 1999 if appropriate)?  

– Whether they are applying the term properly, in accordance with the contract (for example, by complying with any notice period set out in the contract).

– Whether due regard has been given to the interests of their customers and treating customers fairly (see FCA Principle 6). Also, to the information needs of their customers and communicating information in a way that is clear, fair and not misleading (see FCA Principle 7).

– Whether there is any other reason in law or any other relevant FCA rules, and whether they are complying with them.