FCA confirms multi-occupancy insurance reforms

FCA has confirmed it is to put in place measures to ensure insurance firms act in leaseholders’ best interests and treat them as customers when designing multi-occupancy building products. It is also taking forward its proposal to ban recommendations of insurance policies based on commission or remuneration levels.  FCA also expects brokers to immediately stop paying commissions to third parties where there is no appropriate justification and evidence for doing so. Separately, the Department for Levelling Up, Housing and Communities will ban payment or commission sharing with property managing agents, landlords and freeholders.

The changes, to SYSC, ICOBS and PROD, will take effect from 31 December.

Emma Radmore