With the UK’s imminent departure from the European Union, particularly under a possible no-deal scenario, the dream is for Brexit to go off without a hitch. The Financial Conduct Authority (FCA), for its part, is doing all it can to support companies in efforts towards “as smooth a transition as possible” and has released updated guidance.
“It is important that firms are finalising their preparations to deal with leaving the EU,” stressed FCA executive director of international Nausicaa Delfas. “While we appreciate there remains uncertainty, firms should consider the impact of all scenarios on their business, and on their customers.
“As a guiding principle, we expect firms to adhere to our regulatory standards throughout. To assist firms, we have updated the information on our website.”
Aside from general information, the FCA has put forward dedicated pages for UK-based general insurers and intermediaries; life insurance, pensions, and retirement firms; retail banks and payment firms; retail investment firms; as well as wholesale banks, markets, and asset management firms.
The goal is to urge businesses to see to it they are making necessary changes to protect customers from Brexit’s negative impacts, with or without a withdrawal agreement. In addition, organisations are being reminded to make sure the required client communications are carried out in a clear and fair manner.
In general insurance, for instance, the regulator said a key focus for the sector in case of a hard Brexit is to minimise the potential disruption for customers based in the European Economic Area (EEA) or policies with certain EEA risks.
“Firms should also ensure that their UK customers understand if their insurance policies are affected and are treated fairly,” stated the FCA. “Motor insurers should inform consumers of the necessity for green cards, ensuring they communicate in enough time for customers to be able to receive one before exit day if required.”
Meanwhile Delfas noted that the watchdog continues to prepare for all outcomes. “Our focus is to ensure there is as smooth a transition as possible when the UK leaves the EU, and that markets function well,” said the official.
