View more on these topics

ABI: Axe objective for pre-policy protection

The Association of British Insurers has called for the Prudential Regulation Authority’s statutory insurance objective to protect consumers before they become policyholders to be removed.

The objective is to provide an appropriate degree of protection for those who are, or are about to become, policyholders.

Giving evidence to the joint committee on the draft Financial Services Bill last week, ABI director of prudential regulation Hugh Savill said the requirement to protect consumers who are not yet policyholders does not fit with prudential regulation.

He said: “If this was the conduct regulator I would understand it because a lot of conduct regulation is applied, in effect, before someone becomes a policyholder. In terms of prudential regulation, it is very difficult to see what it adds and it is a very nebulous concept. As a result, we would prefer it to be taken out.”

The Financial Conduct Authority does not have a specific insurance objective.

Savill told the committee it is difficult to see how insurance firms could work to protect consumers who are not policyholders and said the interests of actual policyholders should be “at the heart” of the new regulatory system.

The objective was given to the PRA after the industry raised concerns that the regulator would be too focused on banks and would not adequately take into account insurers’ business models.

Despite his concern about the objective, Savill said: “We take comfort from the fact that insurance supervisors from the FSA, who have done a good job over the past 10 years but have had little credit for it, will be moving to the PRA.”



HMRC puts burden of VAT evidence on IFAs

HM Revenue & Customs has clarified its stance on VAT relating to financial advice, confirming that advice which includes portfolio rebalancing will be VAT-exempt. In draft guidance on VAT liability, published this week, HMRC states that VAT will not apply where a customer agrees to take out an investment product following adviser recommendations. It states […]

Markets regain majority of losses despite Italy concerns

European markets have recovered most of their early losses despite concerns that Italy may be the latest country to fall victim to the eurozone crisis. At close, the FTSE 100 stood at 5510.82, a fall of 0.3 per cent from its opening price, while the French Cac 40 and the German Dax were both down […]

MF Global broke customer cash rules

Stockbroker MF Global broke rules requiring it to safeguarding client’s money, the firm’s regulator has claimed. CME Group chief executive officer Craig Donohue says the firm broke laws that required brokers’ to keep their customers’ money separate from other customers’ money as well as the company’s own funds. He said: “CME has determined MF Global […]

Artemis Global Income: favouring Europe over the US

With a 10 per cent return from his Global Income Fund in the first three months of 2015, Jacob de Tusch-Lec talks to journalist Alexis Xydias about the drivers and why he favours Europe and Asia over the US. Jacob believes European companies remain cheap and is still finding opportunities amid value stocks – in contrast […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm