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FCA publishes draft Price-Setting Attestation wordings

Nov 19, 2021 | FCA

Link(s):PS21/11: General insurance pricing practices – amendments

Context

The FCA has updated its web page in relation to the Policy Statement PS21/11 to confirm that it has published draft wordings for the first and second/subsequent Senior Manager Attestations in relation to the new general insurance price-setting rules. As a reminder, in the Policy Statement PS21/5 the FCA confirmed that senior managers at firms will be required to provide annual confirmation that their firm has complied with the requirements in ICOBS 6B. The FCA will be sending out the first Attestation in January by way of a Qualtrics Survey Tool survey, in which firms can provide their first attestation.

Key points to note

  • The first Attestation is worded so that:
    • the Senior Manager is attesting “…that I am satisfied that the firm is compliant with the requirements…” in relation to a number of elements of the new ICOBS 6B price setting Rules.
    • the firm can confirm whether it used the Transitional Period up to the 17th January and, if it did, whether it has done what is required (so action by the end of February) to make any necessary repayments in relation to the Transitional Period, and then to indicate how many customers were involved and the total of any repayments made.
    • the Senior Manager can inform the FCA that he/she is not able to make the Attestation, also needing to confirm whether or not the firm has made a SUP15.3.11 R Notification to the FCA in that regard.
  • Firms subject to the rules must provide this attestation by 31st March 2022.
  • Some firms may receive the survey but are not subject to the rules. If you’re in this group, you should submit a nil return as confirmation that your firm does not undertake any pricing activity in relation to all products in scope. Further information on how you can do this will be included in the survey. 
  • The FCA is using Qualtrics for the first attestation only. The second and all subsequent attestation will be done via RegData.
  • To help firms prepare ahead of their first attestation, we’ve provided examples of the forms firms will need to use, as well as the cover letter:

Next actions

Please review and understand the draft wordings of the Attestations.