b'TABLE OF CONTENTSwell for consumers. Through its previousGeneral Insurance Pricing), many of whom do not interventions, the FCA has seen practices by somehave the financial acumen or bargaining power to firms that cause harm. These include firmsdo so themselves.presenting information in a way that exploits consumers behavioral biases, selling products or services that are not fit for purpose or providingAppointed poor customer support. Representative RegimeOn December 7, 2021, the FCA published a furtherThe appointed representative regime is used consultation on a new Consumer Duty, includingextensively in the insurance market by offshore feedback to an earlier consultation. The furthernon-UK insurers to engage in regulated activities in consultation took on board feedback andthe United Kingdom through an authorized UK engagement with industry and consumer groupsinstitution (the principal), without the need to be following the initial proposals published in Mayauthorized by UK financial regulators. 2021. It sets out more developed proposals for new rules to tackle the causes of harmful practices. TheThe FCA has proposed changes to the regime to new rules will raise industry standards by puttingmanage the risks of abuse and potential harms to the emphasis on firms to get products and servicesconsumers and markets from the activities of right in the first place. appointed representatives. The new rules will require firms to focus onThe proposals, which the FCA consulted upon in supporting and empowering their customers to2021, will increase the regulatory burden for make good financial decisions and avoidingprincipals. These include (i) requiring principals to foreseeable harm at every stage of the customerprovide timely and additional information on their relationship. Firms will have to provide consumersappointed representative (including enhanced with information they can understand, offergovernance and oversight) and (ii) increasing the products and service that are fit for purpose andresponsibilities and expanding the reporting provide helpful customer service. requirements for principals. The consultation is open until February 15,The consultation period will close in March 2022, 2022, and the FCA expects to confirm any finalwith final rules expected to be finalized mid-year. rules by the end of July 2022. The UK Parliament has also called strongly for a change to theUK Improvements to standard of protection for consumers, and the publication meets the FCAs obligations under thePart VII Transfer ProcessFinancial Services Act 2021.See US/NAIC - Insurance Business Transfers The FCAs proposals on a Consumer Duty are partand Corporate Divisions Gather Steam for a of a continuing trend by the regulator to preventdiscussion on UK improvements to the Part VII financial harm to consumers (see, for example,transfer process.MAYER BROWN |107'