FSA has made new rules on standards that banks and building societies must meet when selling packaged bank accounts. The rules ensure providers check consumers will be eligible to claim under any insurance cover included in the package and that all policies within the package are suitable. Investors must also receive an annual eligibility statement, which FSA hopes will prompt them to review suitability of products. The new rules amend the Insurance: Conduct of Business Sourcebook (ICOBS) from 31 March 2013. FSA is consulting now on whether this statement should be a separate mailing, to give it added prominence. FSA wants comments on its further proposals by 29 October and wants to make new rules by the end of 2012. (Source: FSA Makes Packaged Bank Account Rules)
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FSA makes packaged bank account rules
- Dentons
- Andrew Barber and Emma Radmore
- United Kingdom
- August 3 2012
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Sonja Sarantis
Legal Counsel
State Street Bank and Trust Company
