The Financial Services Authority consulted upon changes to the client money rules for general insurance intermediaries in August 2012. Responses to this consultation were invited by 30 November 2012. No policy statement followed this consultation. We reported on the proposals put forwarded in CP 12/20 in an update at the time.
The Financial Conduct Authority (FCA) had been expected to publish a revised policy approach to insurance client money in the third quarter of 2016. The regulator has now published a statement on CP12/20 stating that it will not pursue any rule changes to CASS 5 without a new consultation. Taking into consideration a cost-benefit analysis in the light of new requirements introduced by the Financial Services Act 2012 and a review of additional data collected on the impact of the CP12/20 proposals on smaller firms, the FCA has decided not to proceed with the original proposals.