Business

Close Brothers publishes pricing reform guide for brokers 

CBPF warned that many smaller brokers do not have in-house compliance and regulatory teams, and were looking instead for external support

Close Brothers Premium Finance (CBPF) has published a new guide for its broker partners in a bid to help them navigate the FCA pricing and fair value reforms. 

The guide is reportedly a response to requests for information from brokers selling personal lines insurance who want to ensure they are “well-prepared” for the new regime when it comes into force at the beginning of next year.

CBPF warned that many smaller brokers do not have in-house compliance and regulatory teams, and were looking instead for external support. 

In light of this, CBPF has compiled answers to several of the most frequently asked questions regarding new pricing rules.

It has focused the guide on four key areas: changes that will apply to “price walking”, product governance and renumeration, pre-contractual premium finance disclosures and regulatory reporting. 

CBPF has also arranged a webinar for its broker partners which will be run by Grant Thornton on 7 December to provide further insight and commentary on the reforms and what brokers need to be prepared for next year. 

Seán Kemple, CBPF managing director, said: “Although the FCA changes do not impact us directly, and have been well-trailed, smaller brokers in particular are asking where to get more information so they are fully prepared for January.

“As the pioneer of premium finance for insurance broking forty years ago, CBPF has weathered lots of regulatory change, so we have anticipated the new pricing regime and have already begun to think about the next changes around Consumer Duty, which are scheduled for next summer.”

He added: “Nearly 75% of our broker partners recently told us the information we provide to them to help them navigate regulatory change is good, but we want them to rate it as excellent  It’s incumbent on us to continue to make premium financing as customer focused as we can creating good outcomes and great customer experiences. 

“We have sent the guide to all our personal lines broker partners.  We know from our campaign stats the guide has been hugely popular. We are keen to do all we can to ensure our industry is fully up to speed with the changes and that implementation  next year is hassle free, for brokers and their customers too.”

Show More
Back to top button