Key issues they've highlighted include:
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Product Review Failings - The FCA identified wide-spread failures in product review processes - often caused by a narrow focus on contractual obligations at the expense of customer outcomes.
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Poor Customer Comms - Standards of communications generally found to be poor - especially at key points in the lifecycle of products (e.g. surrender, maturity etc.).
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Poor disclosure of exit charges - Evidence found of customers not being given adequate details when charged exit fees.
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Excessive paid up charges - The FCA has also identified cases where "the level of charges resulted in a poor customer outcome" citing paid up charges at a concern - especially where the charge outweighed any future fund growth.
"The findings are based on a sample of 11 firms, all of which will now be busily reviewing their own specific feedback. In an unusual move for the FCA, other firms, those not in the sample, won't be let off the hook. The FCA has said it will be engaging with these firms through their day-to-day supervisors on possible follow-up work.
"So it's clear, the review is going to have a big impact on life assurers. That's to be expected - but these firms are already shouldering a weight of regulatory and legislative change, not least of which are the pensions reforms, which could include a cap on charges.
"PwC has been focused on this review for some time - helping clients prepare for FCA visits, hosting client events, and providing support in anticipation of today's results. In light of today's findings, we will be ramping up our efforts."
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