2017年-FCA英国金融行为监管局_mobile_phone_insurance_follow_up_review_2页_106kb

Regulator Assessment Summary: Mobile Phone Insurance - Follow-up Review

Core Content

This document outlines the findings and impact assessment of a follow-up regulatory review conducted by the Financial Conduct Authority (FCA) on mobile phone insurance (MPI) in the UK. The review was initiated in December 2015, following the initial thematic review 'Mobile phone insurance – ensuring a fair deal for consumers (TR13/2)' published earlier that year. The purpose of the follow-up review was to evaluate how 14 firms (comprising insurers and insurance intermediaries) had responded to the key findings and expectations of TR13/2, without introducing new regulatory standards or obligations.

The review focused on existing compliance with FCA rules, and did not aim to set new requirements, provide interpretations of existing rules, or establish new expectations. It was a factual assessment of the current state of compliance among the firms surveyed, highlighting non-compliance instances but not prescribing new actions.

Main Points

• Title of Proposal: Mobile phone insurance - follow-up review
• Lead Regulator: Financial Conduct Authority (FCA)
• Date of Assessment: 24 February 2017
• Commencement Date: 10 December 2015
• Origin: Domestic
• Scope: Limited to assessing the compliance of firms with existing FCA rules, not introducing new regulations or expectations
• Affected Areas: Whole of the UK
• Type of Business Affected: General insurers and insurance intermediaries providing mobile phone insurance products
• Estimated Number of Affected Firms: 60

Key Information

• The review was not part of the "Cutting Red Tape" initiative.
• The review aimed to evaluate the implementation of recommendations from TR13/2, which had been published before the Enterprise Act 2016 came into force in May 2015.
• No new standards, rules, or guidance were introduced.
• The report is a factual summary of compliance levels, not a prescriptive document.
• The impact on business was estimated based on the time required for compliance staff to familiarize themselves with the findings, assuming an hourly rate of £48.
• The total estimated familiarisation cost for 60 firms was £1,920.
• Net cost to business: £0, as the review did not introduce new compliance requirements.
• BIT score: 0, indicating no additional regulatory burden.

Cost and Benefit Breakdown

Impact on Business

• Familiarisation Costs: Estimated at £1,920 for 60 firms, based on 32 hours of work per firm at £48/hour.
• Reading Time: The report is approximately 3,823 words long, which would take about 40 minutes to read at a rate of 100 words per minute.
• Assumptions: The cost estimates assume that compliance actions are already in place and that the review only requires firms to become familiar with the findings.

Cost Estimates

• Compliance Staff Rate: £48/hour, derived from the 2016 Robert Half salary guide, which estimates a compliance manager in London earns between £70,000 and £104,000 annually.
• Total Familiarisation Cost: £1,920
• No Additional Costs: Since the review did not impose new requirements, the cost to bring firms into compliance is considered zero.

Benefits

• Improved Compliance Awareness: The review helps firms understand their existing obligations and the extent to which they are meeting them.
• Consumer Protection: It reinforces the FCA's commitment to ensuring fair treatment of consumers in the MPI market.
• Market Transparency: The findings contribute to a clearer understanding of market practices and potential non-compliance issues.

Additional Information for BIT Score Validation

• The BIT score was calculated based on the assumption that no new regulatory obligations were introduced.
• The cost estimates were derived from a reasonable hourly rate for compliance staff.
• A link to the Robert Half salary guide for 2016 is provided for reference: Robert Half Salary Centre