Regulatory Alerts2016-12-09
Fair treatment of long-standing customers in the life insurance sector: FG16/8
The Financial Conduct Authority issued Finalised Guidance FG16/8 to ensure life insurers treat closed-book customers fairly by addressing poor practices identified in Thematic Review TR16/2. The document establishes four key outcomes requiring firms to implement robust governance, provide clear and timely communications, fairly assess fund performance, and facilitate reasonable exits from unsuitable products. This guidance applies to providers of individual personal pensions, whole-of-life, endowments, and investment bonds, mandating that they review their practices to meet existing regulatory principles without necessarily amending original contractual terms.
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