Bank of England to beef up consumer safeguards at banks, insurers
The Bank of England will step up efforts to ensure bank customers and insurance policyholders suffer no loss of service if their lender or broker goes bust, its regulatory arm said. The Bank's Prudential Regulation Authority (PRA), formally launched last year to tighten supervision of financial firms, sketched out the plans in its annual report published on Tuesday. The withdrawal of insurance, for example, would especially be a problem when cover is mandatory, such as car insurance for drivers and building insurance for mortgage-holders. "Such a framework would suggest greater focus on compulsory insurance, any disruption to which would have an impact on the real economy, and long-term life insurance products which are difficult to transfer," the PRA report said.