One specific aspect of the guidance that was highlighted by Edwards was the comments about target markets where the FCA stated “target market statements were often too high level and lacked granularity”.
“If firms do not adequately define the target market, there is a real risk that the product is then sold to customers outside this group who are unlikely to get fair value or achieve good outcomes from the product,” he said.
“I’ve worked in and out of the protection industry for over 30 years and this has always been a bugbear of mine.”
Edwards added that, in 2024, there are some protection products companies have clearly designed with smaller, specific customers in mind.
“However, the majority of products still seem to be trying to be all things to all people. Generic products designed to appeal to everyone could end up appealing to very few,” he said.
tom.dunstan@ft.com
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