TPR: FCA suspends licence of 4 insurance firms

In an unusual step for the FCA, they have confirmed on 18 January 2022 that 4 foreign insurance firms have had their temporary permission to trade in the UK cancelled for not responding to multiple mandatory information requests. These firms are authorised and regulated in their home countries (Cyprus, Germany and Spain) but have lost their right to conduct business in the UK with immediate effect as they are no longer authorised under the temporary permissions regime (TPR).

While the reasons seem avoidable, ie the FCA points out the firms had failed to respond to repeated requests for the provision of information, namely the information set out in the TPR Attestation Survey and that authorised firms (and those seeking authorisation) were expected to engage with the FCA in an open and cooperative way. The Authority therefore saw the firms failing to satisfy the suitability and effective supervision threshold conditions and in particular, was not satisfied that these firms are fit and proper and managed in such a way as to ensure that their affairs will be conducted in a sound and prudent manner.

This decision may have an impact on existing customers and contracts of insurance and is a clear sign of the new and tougher approach the FCA is taking. This new approach will affect all market participants but firms still working under the TPR and dual regulated firms should take particular note of the cooperation requirements and the mandatory reporting obligations now in force for them.

If you have any questions about TPR or other regulatory obligations or need assistance making an application, please get in contact. We are happy to assist.