Committee publication · Correspondence · 24 March 2026
Correspondence from the FCA on its initial review of the withdrawal of the Family Protection Plan, dated 19 March 2026
From: Treasury Committee
Summary
The FCA updates Parliament on its initial review of the Family Protection Plan (FPP), a group life insurance product withdrawn in November 2025 after nearly 5,000 people were covered. The regulator decided against taking further conduct action but is supporting industry efforts to find alternative cover for vulnerable consumers unable to secure comparable replacement insurance, particularly older policyholders.
Key findings
- FPP, underwritten by Maiden Life and distributed by CMutual via credit unions, covered almost 5,000 individuals (2,400 certificate holders plus family members) when withdrawn on 30 November 2025; 70% had claimed on the policy
- Many affected consumers aged 80 and under can access alternative cover (over 50s plans, funeral plans), but older consumers and those unable to find affordable alternatives face a genuine protection gap
- FCA decided against taking further historic conduct action after supervisory review, having assessed the product lifecycle, regulatory framework at the time of sale, consumer rights, and disclosure practices
- Industry roundtable hosted by Economic Secretary to the Treasury in late February resulted in commitment by the industry to explore potential solutions for vulnerable consumers
- FCA offered regulatory support including Innovation Pathways and Regulatory Sandbox access to firms developing solutions for those most affected by withdrawal
Tone
ProceduralTopics
insuranceconsumer-protectionfinancial-regulationvulnerable-consumers
Key actors
Dame Meg Hillier MP, Sarah Pritchard, FCA, Maiden Life, CMutual, HM Treasury, Economic Secretary to the Treasury, Scottish Government
Notable line
“We are encouraged that different commercial options are being considered, albeit no alternatives have yet been identified for those who are older.”
Key Quotes
“We have strongly encouraged the parties involved to work together to identify how the most affected consumers can be supported.”
“We have considered, and decided against, taking further action in relation to historic conduct related to this product, at this time.”
“… we have written to those firms involved to make clear we will provide any necessary regulatory support. This includes an offer to use our innovation services – for example our Innovation Pathways or Regulatory Sandbox – to support any proposals that may be developed for those most affected …”
Source · parliament.uk record ↗