The FSA has warned firms operating price comparison websites that they need to be aware of their regulatory requirements.
In the letter the FSA outlines proposed guidance and highlights some concerns it has around the fair treatment of customers.
It also asks firms to think establish whether they are introducing, arranging or even advising customers on purchasing a contract of insurance – and whether they need to reflect that with a change in permissions
The letter follows a review carried out between June and September 2010. Firms now have until 8 August 2011 to respond to the proposed guidance
The letter also says firms should take responsibility for checking eligibility or disclosure, rather than putting the onus on the customer
Firms who are using a ‘white label’ service are reminded to make it clear to customers which firm they are actually dealing with and who they should complain to should they wish to do so. They are also warned to check that their provider holds the necessary permissions to conduct regulated activity.
The British Insurance Brokers’ Association (BIBA) welcomed the move. Eric Galbraith, BIBA’s chief executive, said: “Our concerns from 2008 have focused on the gap developing between the pace of technological change and the regulations which were written in 2005. We are pleased that the FSA recognise the price comparison website activities to be more than simply introducing and we trust that the steps that they are taking will close this gap.””
