EIOPA (the European Insurance and Occupational Pension Authority) has published a feedback statement on blockchain and smart contracts in insurance. It contains high level summaries of the responses received from industry, national, and European industry associations, technology providers and academia, together with EIOPA reactions.
Overall, the feedback received is mostly positive and demonstrates blockchain’s potential as a technology that could benefit both customers and the industry. The responses discussed associated risks with blockchain, most notably cyber and operational IT risks, and suggested that going forward the key focus should be on training staff on IT and digitalisation issues.
EIOPA will consider this feedback with its ongoing and future work on digitalisation. Based on the feedback statement, EIOPA stated that the proposed follow-up work seems to remain “generally valid”.
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Investment platforms: costs and charges
Following its Market Study in 2019, the FCA has recently published findings from its investment platforms costs and charges review.
The review focused on the experience of non-advised consumers in accessing charging information and whether the information available helped them to understand what they pay. The FCA found that they could generally identify and compare the main platform charges and the fund charges were signposted. Activity-based charges, however, were sometimes harder to locate. The FCA has usefully provided examples of good and bad practice.
Firms are encouraged to take the following steps:
- Review the FCA’s findings and ensure compliance with the applicable Handbook rules
- Become familiar with the FCA’s proposed Consumer Duty
- Be aware of the FCA’s Consumer Investments Strategy
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