Video: How much could Rishi Sunak’s plan cost? (Sky News)

How much could Rishi Sunak’s plan cost?

UP NEXT

UP NEXT



a small boat in a body of water: MailOnline logo


© Provided by This Is Money
MailOnline logo

Savvy drivers and homeowners who switch their insurance provider every year may be facing a steep rise in the premiums on offer from next year. 

The financial watchdog is proposing to ban what has become known as the ‘loyalty penalty’ from late 2021, potentially saving some 6 million customers £3.7billion over 10 years. 

Currently in the motor insurance market premiums rise by an average of 2.54 per cent at renewal, according to Consumer Intelligence. In home insurance, premiums go up by an average 12.67 per cent every year. 

Banning this will mean that insurers can no longer reserve the best deals for new customers while at the same time charging more to existing policyholders who don’t switch away when they renew. 



a small boat in a body of water: The FCA plans to ban insurers from raising premiums for loyal car and home customers


© Provided by This Is Money
The FCA plans to ban insurers from raising premiums for loyal car and home customers

It comes after years of campaigning from This is Money and others warning about the penalty and encouraging customers to fight back. 

While the rule change is good news for the majority of policyholders who choose to stay with their existing provider, it is likely to penalise those who have bothered to shop around. 

Insurance experts Consumer Intelligence said: ‘One thing is absolute – premiums are going to rise. 

‘In the current model, insurers offer heavily discounted new business prices to acquire new customers, but don’t make profit until year two or three of the policy. So naturally, prices will need to even out to support the sustainability of the industry.’

The price of loyalty penalty 

The FCA has calculated the differences in prices paid by existing and

JPMorgan


  • JPMorgan will pay the largest CFTC monetary penalty ever and admitted wrongdoing in order to resolve a case surrounding claims of market manipulation in the trading of precious metals and Treasury securities, Bloomberg first reported.
  • The case covers an eight-year period and relates to the practice of “spoofing,” where traders put in large orders to buy or sell a security with no intention of executing the order, creating the appearance of demand or supply for a particular asset.
  • JPMorgan will pay $920 million, which includes a $436.4 million fine, $311.7 million in restitution, and $172 million in disgorgement.
  • Visit Business Insider’s homepage for more stories.

JPMorgan will pay $920 million and admit wrongdoing in order to resolve a case surrounding claims of market manipulation, Bloomberg first reported on Tuesday.

The $920 million payment represents the largest-ever monetary penalty imposed by the Commodity Futures Trading Commission, and consists of a $436.4 million fine, $311.7 million in restitution, and $172 million in disgorgement, according to a statement from the CFTC seen by Bloomberg.

The case covers an eight-year period and relates to the practice of “spoofing,” where traders put in large orders to buy or sell a security with no intention of executing the order, creating the appearance of demand or supply for a particular asset, and helping move that asset in the desired direction of the trader.

It’s unlawful to submit and cancel orders in a strategy intended to deceive other traders.

The settlement will put an end to a criminal investigation of the bank that has entangled a half-dozen employees. Two employees have entered guilty pleas, while four employees are facing trial, according to Bloomberg.

JPMorgan traded down as much as 2% on Tuesday.

Read more: The CEO of a $41 billion money manager says there will