Lloyd's Market Association Bulletin
LMA22-019-SM | 10 June 2022
LMA5312B – Product Governance Binding Authority Endorsement
The LMA5312 was first published in 2018, then updated in 2019 as LMA5312A. The endorsement was designed to deal with the allocation of insurance distribution directive (IDD) product governance responsibilities between managing agents and coverholders.
The endorsement has been updated and enhanced (LMA5312B ) to allocate further responsibilities required by the FCA's Pricing Practices rules (see FCA Policy Statement PS21/5). The new allocated responsibilities include product Fair Value assessment, provision of intermediary remuneration information, regulatory reporting and additional responsibilities for UK consumer products as defined in ICOBS 6B (e.g. Home and Motor).
Please note that LMA5312B is provided to offer assistance to managing agents and coverholders. Its use is not mandatory and, when used, it can be adapted as may be required.
LMA guidance on the FCA Pricing Practices requirements and Fair Value assessments can be found on the LMA website.
The LMA5312B will be discussed at the LMA's next Conduct Risk Forum. Details of that meeting will be sent shortly.
For further information, please contact Steve Morrell or Carla Wise.
Head of Regulatory Affairs
Delegated Authorities & Claims Operations Manager