CII responds to FCA Coronavirus financial resilience survey

Following the publication of the Financial Conduct Autority's survey findings in relation to financial resilience of firms it regulates, Keith Richards, chief membership officer of the Chartered Insurance Institute commented:

“It is concerning that the FCA has determined 4,000 firms across three key areas are deemed at risk. Also, I am surprised that there is no indication of a proactive plan to help mitigate possible failures during these unprecedented times. It is important to protect the interests of the consumers who may also be impacted as well as avoid further financial pressure being placed on the rest of the sector.

“We must appreciate how well firms have done to weather successive storms of lockdowns, health and economic impacts and obviously the additional effect of people’s personal lives as well. The work our members have done in this period to maintain and even go beyond what they normally offer customers, should be commended.

“This survey was done before furlough was extended, which now gives employers financial support until the end of April and this time it can be taken flexibly. Firms can now furlough for as little as one day a week for example and this flexibility and guaranteed support could help firms bounce back better in coming weeks.

“At the time this survey was undertaken there were no vaccines in sight. The announcement of new vaccines has seen markets injected with a little optimism. The flip side to that however, is that it also took place before lockdown 3, which could cause greater damage, despite us feeling so close to an exit from measures to slow the spread of coronavirus.”

Authored by the Chartered Insurance Institute