Click on the FAQs to reveal the answers.
- What is the FCA?
- Regulating
- Protecting
- Championing
- Enforcing
- As a SIS reseller, do I need to be regulated by the FCA?
- We are responsible for what you do in respect of the sale of CompuCover and deemed to accept responsibility for everything done (or omitted to be done) by you
- You must enter in to a written contract with us
- You must follow the sales procedures that we give to you
- You must not do anything in relation to CompuCover that we do not allow you to do
- You must allow us to monitor how you are complying with the FCA's requirements
- You warrant that your company is solvent at all times and to inform us should this situation change
- How do I know what I can and can't say to a customer?
- You must give advice describing the merits of buying or selling CompuCover;
- The advice must recommend CompuCover; and
- The advice must be to a specific person
- No excess
- Rapid claims settlement
- Worldwide cover
- It will cost you X”
- What is the difference between an advised sale and a non-advised sale?
- What is advice and should be avoided?
- How do I make sure I give clear and precise instructions?
- Where can I find the policy wordings and key facts summary sheets for insurance?
- Where can I find the policy wordings and key facts summary sheets for warranty?
From April 1st 2013, the Financial Conduct Authority (FCA) replaced the Financial Services Authority (FSA). There are 4 key areas on which FCA attention will focus.
These key areas help to make sure that financial firms are fair and honest in their dealings, whilst treating customers fairly, and making sure that tough punishments are handed out to those who try and break the rules.
The formation of the FCA means that there is the opportunity to regulate the financial services industry more efficiently. Key aims of the newly formed regulatory body are to ensure that markets and financial systems are sound, stable and resilient, with clear pricing information that consumers can easily understand.
The FCA compliance regime states that all parties that are involved in the sale of general insurance contracts have to be either exempt or regulated. Whether you are exempt or regulated, this means:
It is very important that you do not make a “personal recommendation” that your customers purchase CompuCover. A personal recommendation is defined by the FCA as having three elements:
You can say - “I recommend that you take out insurance for your laptop”
You can say - “CompuCover has the following features: No excess, rapid claims settlement etc”
You cannot say - “I recommend that you take out CompuCover”
You cannot say - “You should purchase CompuCover because it has no excess”
If you have a customer ring up looking to take out insurance or warranty over the phone we recommend using some variant of the following script.
“Have you considered taking out insurance against theft and accidental damage to your computer?”
If the answer is positive:
“I have to ask you if you are willing to receive limited information only about us in connection with your prospective purchase of CompuCover. We can supply you with more detailed information should you require and this will be supplied should you purchase CompuCover.”
“I am Your Name an employee of Your Company; CompuCover is a policy that covers your computer against theft and accidental damage. It has the following features:
If no purchase, no further action is required. If a purchase is made, details will be forwarded to SIS and SIS will send out insurance documentation.
Advised sales are simply, where you give a customer advice. This in essence means that you are making a recommendation.
A non-advised sale is where no recommendation is made, only information is provided to the customer, leaving them with how they wish to proceed.
Information regarding a specific policy is not considered to be advice.
Generic information on the benefits of insurance, without mentioning any company names is also not considered to be advice.
It can be easy to fall into a trap however when a customer is asking questions and looking to probe to find out more information. Questions such as; what do you think?, and what would you suggest?, are commonly asked. Answering these questions could result in you giving a personal recommendation, and therefore advice.
Staff should be aware that it is the customer's decision, and that they are not to influence upon their decision.
There is one key rule to follow when in conversation with a customer either through a face-to-face discussion, via a telephone conversation or through email.
Firstly it is important not to begin using experiences from your own life, as these can lead to you giving a recommendation and therefore advice, which is not something which as a reseller you would be permitted to do.
Company specific key facts summary sheets and policy wordings for your insurance policies will be available to you when you login.
There is a tab along the top that reads company documents and will house the relevant policy documents in a downloadable PDF format, as well as other important documents you may need, including our leaflets and promotional material that you may want to distribute to your customers.
Company specific key facts summary sheets and policy wordings for your warranty policies will be available to you when you login.
There is a tab along the top that reads company documents and will house the relevant policy documents in a downloadable PDF format, as well as other important documents you may need, including our leaflets and promotional material that you may want to distribute to your customers.
