Incoming regulator will devote serious resources into probe and is ready to make big changes
The incoming Financial Conduct Authority (FCA) probe into insurance add-ons will be a significant piece of work and the FCA is primed for intervention in a way never seen before, Insurance Times understands.
It means the FCA could use its beefed-up powers to prevent firms from selling add-ons through temporary banning orders if it suspects misconduct, rather than the old approach of the previous regime, the FSA, which had to painstakingly gather evidence and conduct analysis before taking action.
Such action would be in line with incoming chief executive Martin Wheatley’s ‘shoot first and ask questions later’ approach.
Insurance Times understands that the FSA has already started interviewing firms over add-ons, and it will pass the files to the FCA. The probe should be wrapped up by the third quarter of 2013.
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