FCA: brokers struggling to marry remuneration with evidence of fair value assessment
Brokers are still struggling to provide adequate evidence they are appropriately assessing whether their remuneration is consistent with the fair value of the product they are selling.
The Financial Conduct Authority does however have “some assurance that these firms are working to meet their obligations” after meeting those involved in its latest Thematic Review: Product Oversight and Governance – General Insurance and Pure Protection, which was published today.
Overall, the latest review found insurers and brokers have improved governance and oversight of how products are designed, managed, reviewed and distributed, but many still cannot show how they are providing fair value
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