The FCA is facing an onslaught of regulatory pressures in the wake of a scandal at its insurance company, FCA insurance intermediary FCAI, which is in the spotlight after allegations of fraud and manipulation of insurance market prices.
A recent FCA regulatory audit report uncovered serious flaws in the company’s insurance business and exposed some of its financial mismanagement.
The FCA had promised to clean up its finances, but has failed to do so.
In March, FCII admitted to having used a fraudulent mechanism to lower the cost of premiums for its insureds, which led to an increase in premiums and resulted in an overall decrease in the average premium.
The audit found that some insurers and intermediaries were not reporting their true costs for the first two years of the scheme.
Some intermediaries have been targeted with the same fraud as the insurance company.
FCA insurance companies are now seeking to find new ways to limit the impact on their businesses and customers.
However, the Fca said it would work with the industry and regulators to ensure that it remains compliant and safe for the future.