Advisers warn FCA of poor customer outcomes from market study 'rash decisions'

“We need to ensure the wider impact is being considered”

Jaskeet Briah
clock • 6 min read

Advisers at COVER's Protection and Health Summit have warned that capping or removing commissions, or introducing a fixed fee model, as a result of the Financial Conduct Authority’s (FCA) upcoming market study into pure protection could lead to poor customer outcomes.

Their comments were made in response to a speech by the regulator on the upcoming market study at the Summit last week (07 November, 2024). The FCA has been consulting with the industry on the terms of reference for the study, which it plans to launch in Q1 2025. At the Summit, Peter Lukacs, head of the competition economics department at the FCA, said the study will focus solely on individual policies, including term assurance, critical illness, income protection and guaranteed acceptance. Lukacs noted the FCA is not going to dive into details around the underwriting of these product...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Adviser / Broking

Demand for protection and health to rise in 2025: The Exeter

Demand for protection and health to rise in 2025: The Exeter

Survey from The Exeter

Cameron Roberts
clock 20 December 2024 • 2 min read
2024 year in review: Advisers look back on quality

2024 year in review: Advisers look back on quality

Market reduction, adviser skills and the mortgage market

Cameron Roberts
clock 19 December 2024 • 5 min read
Advisers continue demand for vulnerable customer support

Advisers continue demand for vulnerable customer support

Rise in training take-up for Just Group

Jaskeet Briah
clock 16 December 2024 • 2 min read