UK - Employee benefits are to be regulated by the Financial Services Authority under new general insurance rules.
The conduct of business rules – which will cover group income protection, group critical illness and life insurance – will implement Insurance Mediation Directive (IMD) requirements and improve consumer protection.
The final rules contain a number of changes aimed at clarifying and increasing the flexibility of proposals set out in a consultation paper issued last year.
The underlying objective is to make sure that individuals who have choices to make are given sufficient information to enable informed choices.
Scottish Equitable employee benefits technical manager Sue Sneddon said she fully supported the principles and views of the new rules as a best practice approach.
She said: “Although less prescriptive than pensions regulation, this is likely to introduce changes to the sales process and communication currently provided in the market.”
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