The Financial Conduct Authority (FCA) is consulting on proposed updates to its Finalised Guidance, FG18/4: The FCA’s approach to the review of Part VII insurance business transfers, initially published in May 2018. The FCA is proposing to amend the guidance following its experience over the past few years and feedback from stakeholders, with the aim of clarifying expectations on Part VII transfers.
The amendments include requiring that applicants and independent experts submit near final documents, confirming in witness statements that applicants and independent experts have acted in line with expectations in FG18/4, requiring applicants to consider whether there are particular issues that the FCA is likely to want to consider and raising these in good time. The proposals also include applicants being able to satisfy themselves that the transfer will not have a material adverse impact on policyholders and require the independent expert to consider objections to the scheme from the perspective of policyholders.
The consultation closes on 31 August 2021.