The LMA has published guidance for managing agents on the implementation of the Consumer Duty. It notes (as FCA did in its insurance-focussed webinar) that the insurance industry should be well prepared for the Consumer Duty, following both the IDD and FCA Rule changes.
Key elements of the LME guidance highlight that:
- the Duty applies to all activities relating to consumers and SMEs;
- a proportionate approach should work for non-UK retail customers;
- as manufacturers, managing agents’ responsibilities are limited as they are not responsible for distributors’ actions although they do remain responsible for the actions of any person to whom they outsource, even if that person is regulated;
- a non-executive Champion will, with the CEO and Chair, be responsible for ensuring the Board discusses the Duty regularly and receives an annual compliance report;
- staff subject to the SMCR should be able to explain the role they play in delivering good outcomes for retail customers;
- firms should take account of existing LMA guidance and documents;
- FCA’s suggestions for gathering of MI are important, as of course is what is done with the MI when collected.