Draft Policyholder Protection Rules submitted to Parliament

The FSB published the Long- and Short-term proposals last Wednesday.

Included in the documentation is a comments matrix reflecting the Regulator’s responses to industry input.

It is interesting to note the inclusion of “Fair Treatment of Policyholders” as a specific rule in both the long- and short-term versions of the PPRs. In the past, it was explained that the principles of TCF were consistently communicated for many years, and raised during on-site visits. The FSB therefore expects regulated firms to apply these principles in the way they conduct business. There would therefore be no formal starting date for TCF.

We also saw the actual stating of TCF outcomes in a discussion document for pension fund administrators on complaints management.

The two sets of PPRs are very similar, with the exception of rule 19 for the LT industry which deals with replacements of policies. This is not included in the ST rules, but dealt with specifically in the General Code of Conduct.

Please click on the links below to access the documents referred to above:

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