FCA names firms involved in regulatory sandbox testing and invites future applications

Emerging financial technology (fintech) companies and established banks are among 18 organisations due to begin controlled testing of new products and services under a scheme operated by the UK's Financial Conduct Authority (FCA).

Mutuals could begin raising capital by issuing deferred shares from next year if outstanding issues are resolved, says expert

FOCUS: Lack of access to external capital creates one of the biggest challenges for mutual insurers and friendly societies seeking to grow and compete effectively with other UK insurers.

Supreme Court upholds clause excluding professional indemnity cover for commercial arrangements

Loans provided to the clients of a firm of solicitors by a third party funder were not 'legal services', and so were not covered by the terms of the firm's professional indemnity (PI) policy, the UK's highest court has ruled.

Debate on 'advice' and 'guidance' will detract from innovation in robo advice, says expert

FOCUS: Innovation in so-called 'robo advice' solutions in the UK could be hampered if there is a never-ending debate over whether tools developed involve the provision of regulated financial advice or merely guide consumers on their investment decisions.

FCA plans to issue new guidance on 'digital disclosures' next year

Financial services firms will be issued with new guidelines on "digital disclosures" in 2017, the UK's Financial Conduct Authority (FCA) has said.

Driverless cars pose threat to motor insurance market value, study finds

An improvement in car technology, together with other factors, is likely to push down the value of the global motor insurance market over the next quarter of a century, according to a new study.

'Digital comparison tools' under scrutiny by UK regulator

The UK's Competition and Markets Authority (CMA) has opened a new market study into price comparison websites and other "digital comparison tools", such as some smartphone apps.

Guidance issued on calculating professional indemnity insurance obligations under PSD2

The European Banking Authority (EBA) has developed a formula for calculating the level of professional indemnity insurance, or other comparable guarantee, that some businesses in the EU payments market will have to put in place under the revised Payment Services Directive (PSD2).

Regulatory focus on data access restrictions could impact Uber, retailers, insurers and car manufacturers, says expert

FOCUS: Retailers, insurers, car manufacturers and the fast-growing software company Uber are among the businesses that should take note of the increased regulatory scrutiny being placed on restrictions of access to data.

FCA selects first firms to participate in regulatory sandbox testing and new advice unit

The UK's Financial Conduct Authority (FCA) has selected 24 businesses to "test new ideas without incurring all of the normal regulatory consequences" under its regulatory sandbox initiative, it has announced. 

FCA confirms that insurers will not face market study into their use of big data

The UK's Financial Conduct Authority (FCA) will not conduct a broad market study into insurers' use of big data, the regulator has announced.

Decades-old legal test not suitable for assessing if investment advice met professional standards, says High Court

A long-standing legal test, that helps to determine whether professionals meet their duty of care to clients is not appropriate for determining whether UK investment advisers have sufficiently communicated with investors to be said to have provided suitable advice, the UK High Court has said.

Fintech can enhance EU capital markets, says Commission.

The rapid growth of financial technology, or fintech, has the power to transform EU capital markets, the European Commission has said.

Insurers have until April to make changes to renewal documentation, regulator says

Insurers will have an additional three months to make changes to the documentation they send to customers at renewal, including a new requirement to publish the previous year's premium, the regulator has confirmed.

'Ethnic minority penalty' report oversimplifies insurers' pricing policies, says expert

Recent reports that people who live in areas with a higher proportion of ethnic minority residents are paying more for car insurance oversimplify insurers' pricing policies, an expert has said.

Investment advisers and authorised firms being inappropriately influenced by those introducing new customers, says FCA

Investment advisers and authorised firms have been told to "maintain full and complete ownership of the advisory process" with investors after the market regulator raised concern about the extent of influence being exerted by some customer 'introducers'.

UK financial firms to face new annual financial crime reporting obligation

Financial services firms will have to file an annual "financial crime report" to the UK's Financial Conduct Authority (FCA) from the end of this year under new plans the regulator has outlined to tackle crimes such as fraud and money laundering.

Third party rights of direct action against insurers due to come into force

New rights for third parties to bring direct actions against insurers in the event that an insured party against which they have a claim becomes insolvent will come into force on 1 August 2016.

FCA: insurers' lack of oversight of appointed representatives 'risks consumer detriment'

The Financial Conduct Authority (FCA) has taken action against a number of UK insurance firms after finding evidence of "potential mis-selling and customer detriment" by their third party 'appointed representatives'.

Supreme Court: 'collateral' lies not necessarily fatal to insurance claim

Insurers may wish to make changes to their contracts following the UK Supreme Court's decision to uphold a €3.2 million claim by the owner of a damaged dredging vessel who lied in support of that claim, an expert has said.

Anti-money laundering rules no barrier to wholly digital ID verification, says Woolard

Anti-money laundering and 'know your customer' regulations are no barrier to verifying the identity of customers via wholly digital processes, a senior executive at the UK's Financial Conduct Authority (FCA) has said.

Court of Appeal: lender entitled to recover full refinancing loan in negligent property valuation case

A lender was entitled to recover the full amount of a refinancing loan it granted after relying on a negligent property valuation, and not just the 'top-up' funding, the Court of Appeal has ruled.

BREXIT: EU exit could result in changes to competition law enforcement against insurers, say experts

FOCUS: UK insurers could face uncertainty under competition law enforcement following a UK exit from the EU, but also potential opportunities.

Huge estimated losses from Canadian wildfires will impact on reinsurers, says expert

FOCUS: The Fort McMurray wildfires in Alberta, Canada are already on course to be the most costly natural disaster in Canada's history - but their long-term impact on the reinsurance industry might not be as severe as first feared.

Firms can now apply to participate in FCA's new regulatory sandbox

Financial services firms and technology companies can now apply to participate in the new 'regulatory sandbox' scheme being run by the Financial Conduct Authority (FCA).

Motorists must wait until full automation before carrying out other activities in 'driverless' cars, says ABI

Motorists will need to remain alert behind the wheel until vehicle driving becomes fully automated, the Association of British Insurers (ABI) has said.

BREXIT: Loss of passporting rights and negotiations outcomes will impact UK insurers in event of 'leave' vote, says expert

FOCUS: The UK's approach to insurance regulation is often at the more prescriptive end of the scale, making a mass roll-back of regulatory burdens unlikely should the country vote to leave the EU in June.

FCA to expand work with 'large incumbents' to enable innovation

The Financial Conduct Authority (FCA) is to work more closely with major banks and insurers to address barriers to innovation, the UK government has said.

Final salary schemes to be included in secondary annuity market

Annuity holders who purchased their policy with funds from a final salary pension scheme will be able to sell it through the planned secondary annuity market, the government has confirmed. 

FCA issues warning to advice firms on accepting hospitality from product providers

Financial advisers that accept invitations to sporting events, concerts or social events from product providers may be breaking conflict of interest rules, the Financial Conduct Authority (FCA) has warned.

Insurers are 'vulnerable' to cyber attacks, says regulatory body

Insurers are "vulnerable" to cyber attacks, the International Association of Insurance Supervisors (IAIS) has warned.

Post-Solvency II bulk annuity deal rush could push up pricing, says expert

Rothesay Life's acquisition of £6 billion worth of pension liabilities from Aegon's UK business is the latest example of an insurer adjusting to new EU level capital requirements by making changes to its business model, an expert has said.

Insurance coverage for data breach by 'malicious insider' will depend on policy wording, says expert

FOCUS: In the absence of specific wording, insurers may be able to reject claims arising out of deliberate data breaches by disaffected employees.

Singapore eases rules on EFT transactions

Some financial advisers in Singapore have been granted permission to directly invest in exchange-traded funds (EFTs) on behalf of their investor customers after the country's financial regulator relaxed its rules, The Business Times has reported.

All Solvency II firms should apply remuneration requirements in the same way, says UK regulator

All senior staff with "significant levels of responsibility" within large UK-regulated insurers should be subject to the same remuneration requirements, the Prudential Regulation Authority (PRA) has confirmed.

Final details released on retail banking key information documents

Final details have been released on the key information documents (KIDs) that financial institutions will have to produce for retail investors.

Affordable flood insurance scheme launched, but prevention efforts still required, says expert

The launch of an industry-backed scheme to ensure that homeowners in areas at risk of flooding can continue to obtain affordable home insurance does not absolve the UK government of responsibility for shoring up the country's flood defences, an expert has said.

FCA risk outlook highlights need for broader debate on cloud adoption in financial services, says expert

The Financial Conduct Authority's (FCA's) latest risk outlook has highlighted the need for a broader debate on the adoption of cloud services by financial services firms, an expert has said.

Focus on good culture and governance in financial services strengthened by senior management rules, says expert

The importance of financial firms having a good culture and governance framework in place is increased by the fact that senior staff can now be more easily held to account for failings, a financial regulation expert has said.

Fintech startups turn to investment innovation, says report

UK fintech startups have moved away from payment solutions and are now focussed on investment management, according to a report from PricewaterhouseCoopers (PwC) and Startupbootcamp.

Fintech startups turn to investment innovation, says report

UK fintech startups have moved away from payment solutions and are now focussed on investment management, according to a report from PricewaterhouseCoopers (PwC) and Startupbootcamp.

China tightens purchase of Hong Kong insurance from mainland

Chinese regulators plan to make it more difficult for mainland consumers to buy insurance products from Hong Kong, China News has reported.

Insurance competition law exemption may not be renewed

Insurance companies should review certain agreements and practices they have with other businesses in their market to ensure compliance with EU competition rules in light of an announcement that an exemption from those rules might be lifted, an expert has said.

Third party insurance claims settling not VAT exempt, CJEU rules

Insurance claims settlement services which are outsourced to a third party are subject to VAT, even where these services are provided "in the name and on behalf of" the insurer, the EU's highest court has ruled.

Budget 2016: chancellor's plans give financial firms opportunity to develop guidance solutions, says expert

Plans to reform the way public financial guidance is delivered in the UK could present new opportunities to financial firms to develop their financial guidance tools, an expert has said.

Uncertainty over UK implementation of PSD2 is stifling innovation, businesses warn

Uncertainty over the way the UK will implement the updated EU Payment Services Directive (PSD2) is stifling innovation, businesses have warned.

Major UK insurers have big 'big data' plans for 2016

More than three quarters of the UK's biggest insurers instead to give more focus to the way they use data this year, according to new research.

Life insurance exit fees for long-standing customers need further review, says regulator

The Financial Conduct Authority (FCA) is to further review charges paid by long-standing customers of six life insurance providers in order to ensure that those customers are being treated "fairly".

Hong Kong must embrace fintech or risk losing its status as a major global financial services hub, says expert

Hong Kong must embrace the revolution in financial technology or risk losing its status as one of foremost centres for financial services in the world, an expert has said.

FCA to pilot comparable insurance claim 'scorecards'

The UK's Financial Conduct Authority (FCA) is to publish data on insurers' claim acceptance rates and average payouts, as part of a "pilot" aimed at making it easier for consumers to compare products and firms.

UK regulator will be 'sceptical' of insurers' attempts to reduce capital requirements

Regulators will be monitoring insurers' applications to alter the amount of capital they must hold under the new regulatory regime to ensure that they are not "gaming" the process in order to reduce the requirements, one of the UK's top regulators has said.

Chinese insurance market now world's third largest, says regulator

China's insurance market became the third largest in the world last year, driven by five years of growth, the country's main insurance regulator has reported.

'Steps of court' settlement was not negligent, court rules

A barrister and firm of solicitors did not act negligently when they advised a client to settle her road traffic accident (RTA) claim after her main witness failed to attend court, the High Court has ruled.

Flood Re secures ?2.1 billion reinsurance programme

Flood Re, the flood insurance scheme set up by the UK government and industry to offer cheaper insurance to homeowners at risk of flooding, has reached reinsurance deals worth ?2.1 billion with 38 insurance companies.

Insurers' profiling will change as autonomous vehicles hit the road, says expert

FOCUS: Insurers will place less reliance on the personal traits and behaviours of drivers and focus instead on the technical features of cars when setting car insurance premiums in the future.

More data sharing at heart of taskforce plans to tackle insurance fraud

Insurers should collaborate further on data-sharing initiatives aimed at reducing insurance fraud, according to a government-commissioned report.

Insurers' tech-start up investment indicates growing importance of digital technology in the industry, says expert

The growing commitment insurers are making to investing in fledgling technology companies reflects the acceptance within the sector of the need to embrace new digital technologies, an expert has said.

Flood Re could deny cover to homeowners who fail to protect homes from flooding, chief executive suggests

Homeowners who fail to take steps to prevent their property from flooding could in future be excluded from the new government-backed affordable flood insurance scheme, the company's chief executive has suggested.

FCA confirms that work on big data use in insurance market remains active

The Financial Conduct Authority (FCA) has not yet determined what action it will take in response to comments it receives about the way insurance companies use data, the regulator has told Out-Law.com.