The UKGI Group recently hosted well-attended seminars in Manchester and London where we and our broker and MGA clients were lucky to hear from the Financial Conduct Authority at both sessions.
Our esteemed speakers were:
- Manchester: Henry Day; Manager in Authorisations, FCA
- London: Andrew Ruddle; Interim Head of Department for Insurance Market Analysis and Policy, FCA
Although the excellent sessions from Day and Ruddle, which gave crucial insight into the FCA’s current thinking, were not reportable, we are able to address some of the key concerns raised by intermediaries in the room on both days.
As the insurance landscape evolves and the FCA steps up its engagement, it is clear that intermediaries face a range of practical challenges. Here, we spotlight the main issues intermediaries raised at the event, offering insight not only into their experiences but also illuminating opportunities for industry-wide improvement.
- Difficulty accessing the right FCA contacts
One of the most consistently voiced concerns by intermediaries revolves around the challenge of reaching the correct FCA personnel. While the FCA has channels in place, intermediaries explained that contact centre processes often make it hard to connect with the individuals or teams who can address their specific questions or cases. This issue can delay compliance actions and increase frustration, especially when timely support is crucial
- Lengthy application processing times
Intermediaries highlighted persistent delays in processing new applications and regulatory approvals. Despite the FCA’s ongoing efforts to refine procedures and speed up authorisations, many in the industry continue to experience long wait times. The availability of a new website page for application support was acknowledged, as was some experience of faster application processing times and approvals, but these appear to be exceptions and feedback at the seminar indicated mixed views regarding how effective the new measures have been. Bottlenecks here not only hamper business development but also impact intermediaries’ ability to serve clients efficiently.
- Overwhelming compliance complexity
The complexity and volume of compliance rules remain a significant headache for intermediaries. Although the FCA has spoken about intentions to simplify regulatory requirements, intermediaries at the seminar expressed scepticism about whether such measures are sufficiently impactful, especially given the diversity of distribution models in the market.
- Varying interpretations and administrative burden
A recurring theme was the knock-on effect of regulatory rules being implemented differently by insurers. Intermediaries recounted how these varying interpretations create bureaucratic “gridlock,” multiplying the documentation and processes they must navigate. Because intermediaries often deal with numerous insurers, each with unique stances on regulatory guidance, the result is more red tape and less time for client-focused activities.
- Proportionality for smaller intermediaries
Seminar participants, particularly those from smaller brokerages, voiced concern over the application of regulations like PROD and Consumer Duty. There is a fear that regulatory expectations, often designed with larger firms in mind, are not always applied proportionately when it comes to smaller firms. While the FCA has released guidance for small firms in other financial sectors, it remains to be seen whether such tailored support will be consistently extended to the insurance space.
Looking forward
Throughout the seminar, a clear message emerged: intermediaries appreciate the FCA’s increased willingness to engage and answer questions directly, but they need more than just access—they seek genuine flexibility, clearer simplified processes, and tailored support in line with firm size and business models. Open dialogue and evolving support tools will be crucial as the industry moves forward.
By amplifying these broker concerns, we hope to foster further conversation and collaborative solutions that benefit not just firms, but the clients they serve.
Do you need assistance navigating your FCA obligations with confidence?
The UKGI Group works with intermediaries of all sizes to simplify regulatory complexity and provide clear, practical guidance. If you’d like to discuss any of the issues raised in this article, or explore how we can support your compliance journey, get in touch with our team today.
01928 765 777