Kris Armstrong, Compliance Policy Manager, Simplybiz

The protection market is under the microscope, with the FCA having issued, and now in receipt of the responses from the protection market survey as part of it’ s Protection Market Study, which is focused on establishing how protection products are sold, and whether commission structures are leading to poor outcomes for customers. Even though the survey wasn’ t universal, in that not all firms will have received it, its contents gave important insight into what the FCA perceive as key issues.

The survey was targeted at certain firms, but the issues it raised apply across the industry. Even if you weren’ t selected, it’ s important to self-assess your own practices. The survey reflects what the FCA sees as key risks and where it may act in the future. The protection market survey explored a number of themes:

• Broker influence on product selection – how advisers decide which products to recommend, and whether those decisions are genuinely in the client’ s best interests.

• Customer outcomes – the regulator’ s central concern: do products deliver what was promised, and are they suitable for the customer’ s needs?

The survey also emphasised the importance of MI and access to data for firms. To help firms meet FCA expectations, Simplybiz has introduced Navigator which gives firms a single hub from which to manage compliance tasks, monitor advice quality and ultimately evidence Consumer Duty outcomes. Navigator helps provide the oversight you need to manage business risk effectively and maintain a strong compliance framework.

• Distribution models – how products reach customers, and whether those channels promote good outcomes.

• Commission structures – whether remuneration arrangements could influence product choice and advice.

• The consumer journey – ensuring customers receive advice that is clear, transparent, and suitable.

| PROTECTION ADVISER | AUTUMN 2025 | 9