Among all the other legal and institutional changes which took place in April, there was a significant alteration to the way the financial services industry is run. The Financial Services Authority has been abolished and has been replaced by two successor bodies: The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
In brief, the PRA will ensure the stability of financial services firms and is part of the Bank of England; the FCA is a watchdog which monitors the behaviour of financial services firms. The aim of this restructuring was to avoid a reoccurrence of failing banks and enormous state-backed bailouts, as have happened over the last few years.
Loss assessors must still be ‘Authorised’
For the loss assessing industry, this means that we now come under the auspices of the FCA. But nothing else has changed: by law, a loss assessor must be ‘Authorised’ by the FCA (rather than the FSA), which means they have met the stringent standards required to manage all aspects of an insurance claim on behalf of a policyholder.
This has been a legal requirement for loss assessors since 2005, and one thing we are very proud of at Morgan Clark is that we were the first firm of loss assessors to be authorised when these regulations were introduced. So nothing has really changed as far as we are concerned, and ensuring a firm is fully Authorised is still the only protection for policyholders if they decide to use a loss assessor.