We’re obliged by the Financial Conduct Authority (FCA) to complete detailed reviews of our products by 1 October 2022. This is to ensure our products provide fair value to customers. Here’s what it means for our brokers.

The FCA published its policy statement PS21/5 in May 2021 which set out its final Product Governance rules that came into effect on 1 October 2021. The Product Governance rules extend existing requirements, as well as introducing new rules; such as requiring firms to complete detailed reviews by 1 October 2022 to make sure that products provide fair value to customers.

This regulation requires appropriate interaction, data sharing and agreement with our brokers across each of our products. The purpose of this is to ensure products provide both qualitative and quantitative fair value as well as provide peace of mind for customers.

We’re aware that many group schemes are exempt, however, given the fact that employees of our schemes can contract directly via an upgrade, as well as adding family members, we’re proposing to adopt the rules and provide you with a clear understanding of the target markets for each of our products.

One of the value assessments is understanding the distribution chain so that distributors provide fair value and promote products to the appropriate target markets as defined by the insurer.

Our Target Market Statements for each product are available for you now via the Broker Resource Hub, where you’ll also find other relevant collateral to support you and your clients. We’ll also be coming out to you to gain further understanding of the value provided to customers in line with commissions paid.

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