Moving Forward, the Prudential Regulation Authority and the Financial Conduct Authority

At the beginning of April, the Financial Services Authority (FSA) was replaced by two new bodies, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

 

The PRA will make sure there is appropriate protection for all our existing and new policyholders.  Its focus will be on management and governance, risk management and controls and financial resources.  It will also promote the safety and soundness of the firms it regulates.   It is responsible for regulation and supervision of insurers, banks, building societies and other investment firms.

The FCA will focus on customers through securing an appropriate degree of protection for consumers with regard to all aspects of financial services.  They also have new powers in relation to product intervention and financial promotions; and they’ll be responsible for the regulation and supervision of firms who don’t fall under the PRA's scope and conduct business regulation of all authorised firms.

What’s happening at Aviva?

The new bodies came into effect on 1 April 2013 and we’ve all got 12 months to make the changes required to all our systems, documents and Websites. We’re already working on making these changes and in the coming months, anything that talks about the FSA will be altered to reflect the new regulatory bodies.

What do you need to do?

Where you use Aviva documentation, you’ll see revised wording appear on new orders over the next few months. Once all our documentation is updated, we’ll let you know so you can order any additional new stock you need.

If you have any questions, we’ve created a set of frequently asked questions available here or alternatively just get in touch with your Aviva business development manager.

Comments

Thank you for your comment. In the first instance the customer would complain to the insurer about a charge they have levied which they feel is unfair or poorly disclosed. If the customer remains unhappy then, as previously they will have an ability to take their case to the Financial Ombudsman Service (FOS) who will still have responsibility for reviewing the complaint. The service offered by the Financial Ombudsman Service has remained largely unchanged in the new regulatory structure.

The Loop Editorial Team 2014-04-29 15:39:37.851370 | Permalink

It is not clear why there should be 2 bodies, PRA & FCA. If a customer has a complaint about the charges an insurance company is making which body do they write to? We have noted recently that a particular company, not Aviva, is putting an additional premium on car policies where the customer has had a non-fault claim paid for by the Third Party's insurer and there was no involvement in it themselves.

Ernest Bell 2014-04-29 15:39:37.857482 | Permalink

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