View the article online at http://citywire.co.uk/new-model-adviser/article/a647318
FSA launches probe into sale of insurance 'add-ons'
by Rachael Revesz on Dec 24, 2012 at 10:36
The Financial Services Authority (FSA) has launched an investigation into the sale of insurance policies as ‘add-ons’ to larger purchases, amid fears consumers could be losing out.
The FSA said it would complete the probe by autumn next year, with resulting market intervention undertaken by successor regulator the Financial Conduct Authority.
The regulator said it was focused the sort of insurance policies sold alongside products such as cars and holidays. It has previously outlined concerns consumers are too focused on the main purchase and may ignore the cost and value of the insurance, and that the terms of policies may mean they are of limited use.
News of the investigation follows the FSA’s requirements on banks to provide to consumers with statements outlining their eligibility for insurance sold as part of a packaged account.
News sponsored by:
Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.
Today's top headlines
More about this article:
More from us
- FSA moves to ban broker for pressure selling that led to £2m loss
- FSA bans ex-mortgage broker boss over failure to combat fraud
- FSA plans to hand lifeline to with-profits mutuals
- FSA survey reveals 'free advice' myth alive and well
- FSA plans ban for Arch bosses and £850k fines
- FSA demands banks issue packaged account statements
What others are saying
by Rosie Sells on Apr 23, 2014 at 11:01