FCA hits 'pause' and orders review amid surge in motor cover commission complaints

The FCA is predicting a "significant increase" in historic complaints against motor insurance brokers following two Financial Ombudsman decisions in favour of the consumer.

By Neasa MacErlean

The regulator has now paused the eight-week deadline for firms to give a final decision to such complainants in the hope of preventing "disorderly, inconsistent and inefficient outcomes" being presented to consumers. The pause applies to cases where insurance was bought before 28 July 2021, when a ban was introduced on discretionary commission arrangements.