FCA makes changes to CPD requirements as it simplifies insurance rules

The FCA has confirmed changes to simplify its rules and lower costs for insurers.

The final rules aim to give more flexibility and responsibility to insurance firms, such as determining the frequency of their product reviews and how much continual professional development (CPD) staff should undertake.

For example, the FCA said in its report that it will remove the mandatory 15-hour CPD requirement so that firms can have greater flexibility for deciding how to ensure appropriate competency and capability.

The regulator also said that it is removing the governance requirement to review products every 12 months – instead requiring firms to decide how frequently reviews should be carried out based on risk.

”We will remove outdated notification and reporting requirements under the Employers’ Liability (EL) related rules so that the rules are proportionate,” the FCA said.

It added that it will make further changes to its insurance rules and cut unnecessary requirements next year, including reviewing the international application of its rules and the Consumer Duty. 

Other proposals

Separately, the FCA has also published proposals that aim to benefit insurers and other firms, including a raft of technical changes to streamline its rules and reduce complexity following the introduction of the Consumer Duty.

This includes proposals to remove three further insurance data returns, review eligibility and disclosure rules for packaged bank accounts (PBA), streamline and simplify rules on collective investment client assets and remove Handbook references no longer needed now the Consumer Duty is in force.

Graeme Reynolds, director of competition and interim director of insurance at the FCA, said: ”We’re simplifying and removing rules for insurers and brokers, reducing regulatory costs and helping them focus on delivering better outcomes.

”Our focus on smarter regulation is not once and done and by using the Consumer Duty we’ll continue to look at rules we may no longer need. We want firms to keep engaging with us on further simplifications for the insurance sector, so we can support growth and innovation.”