Back in August, mortgage intermediary firms distributing protection and/or GI products should have received two letters from the FCA outlining the regulator’s findings and its expectations of firms in relation to fair vale requirements.

Forbearance measures, lasting until 1 January 2023, are available for mortgage intermediary firms (acting as distributors) where certain circumstances are met. Please refer to the FCA’s letter for full details.  

The FCA has been clear that where a firm is unable to understand the outcome of a manufacturer’s value assessment, it should stop distributing the product(s).

AMI continue to work with our Protection Specialists Group to obtain feedback on how firms are finding this process and to consider ‘lessons learned’ as we move into fair value requirements on the mortgage side, under the FCA Consumer Duty.