Following a thematic review of GI delegated authority arrangements, the FCA identified that in order to ensure fair customer outcomes, some firms needed to improve due diligence and the way they manage their outsourced arrangements.
They noted that some organisations weren’t treating their delegated authority arrangements as outsourcing, or hadn’t suitably considered their regulatory obligations.
Knowing how this may affect you and your business is really important. That is why we’ve outlined some of the requirements for insurers & intermediaries when it comes to delegating authority for certain functions.
The findings have been shared in order for organisations to consider to what extent they are impacted and what changes need to be made to ensure customers aren’t put at risk.
We’ll continue to provide further guidance to assist you with meeting the requirements of the FCA as well as providing further information to those brokers who we currently hold a delegated authority relationship with us.
If you have any questions about outsourcing please contact your local branch or your LV= representative.