23rd March 2006
UnumProvident, the UK's leading disability insurer, welcomes the Chancellor's proposal to include income protection within the current exemption from the FSA regime of financial promotions made to employees by employers about their pensions.
Currently, under the Financial Services and Markets Act 2000 (FSMA), employers are exempt from the financial promotion regime, enabling them to promote pensions to their employees without being authorised by the FSA, and without communications needing to be issued or approved by FSA authorised persons.
In feedback to the consultation on this legislation, UnumProvident suggested that this new exemption should also apply to insurance products that are relevant to the workplace, such as income protection and life cover.
In light of this previous recommendation, the insurer commends the announcement in today's Budget of a Treasury consultation on facilitating financial promotions in the workplace, entitled Extending employers' freedoms.
This consultation proposes that employers could provide information and advice to their employees about the types of work-based insurance schemes that exist, without the employers needing to consider taking advice about whether those communications constitute financial promotions, and without the employers needing to use an FSA authorised person to approve or issue any promotions.
Joanne Hindle, Corporate Services Director for UnumProvident, said:
We have been calling for such a change for a long time and are sure that such an exemption would improve the flow of information and communication between employers and employees on the provision of income protection. We look forward to working with the Treasury and the FSA as the consultation develops.
ENDS