The FCA has published policy statement 15/3 where it reports on the main issues arising from its consultation paper 14/29: Guaranteed Asset Protection insurance: competition remedy and publishes the final rules. The FCA says that its final rules will empower customers when making decisions about purchasing add-on guaranteed asset protection (GAP) insurance, and limit the point-of-sale advantage of add-on distributors.
The rules set out in Appendix 1 of the policy statement will come into force on 1 September 2015. Firms distributing GAP insurance in connection with the sale of a motor vehicle (add-on GAP) will be required to: (1) provide customers with prescribed information, including the total premium of the GAP insurance and significant and unusual exclusions or limitations; and (2) introduce a deferral period, which means GAP insurance cannot be introduced and sold on the same day.
The policy statement can be read in full here.