Dynamo Cover Limited

Limits on what they may do

• Dynamo must discontinue the use of the Annual Price Changes term and undertake a review of its renewal notices and automatic renewal process

  Dynamo Cover Limited (“Dynamo”) applies to the Financial Conduct Authority (“the Authority”) under section 55L(5)(a) of the Financial Services and Markets Act 2000 (“the Act”) for the Authority to impose the following requirements (“the Requirements”) on Dynamo’s Part 4A permission, as set out in the terms below, with immediate effect. Discontinuation of APC Term Use 1. Dynamo must refrain from including in its terms of business and must refrain from applying or relying on the Annual Price Changes term reproduced below (“the APC Term”) or any similar term which purports to entitle Dynamo to increase its fees for arranging and administering insurance during the term of the insurance. “Each year the Fee for our service or our Membership Fee will be subject to an annual increase. This is determined by calculating to the total amount paid to us by the RPI Rate plus an additional 3.8%, which is usually applied at the same time....“. 2. For the avoidance of doubt, paragraph 1: a. applies in relation to Dynamo’s existing customers and to any new or prospective customers; and b. does not preclude Dynamo from charging reasonable administrative fees in accordance with its contract terms (e.g. for processing mid-term adjustments). Renewal Notices 3. Within 3 weeks of the Effective Date, Dynamo must undertake a review of its renewal notices against the requirements in the Authority’s Handbook, implement any required changes identified by this review and provide the Authority with confirmation from the Firm’s Board that this review has been completed. Automatic Renewal 4. Within 3 weeks of the Effective Date, Dynamo must undertake a review of its automatic renewal process against the requirements in the Authority’s Handbook, implement any required changes identified by this review and provide the Authority with confirmation from the Firm’s Board that this review has been completed. Securing of Records 5. Dynamo must secure all books and records, preserve information and systems, which may be relevant to demonstrating compliance with the Requirements, and must retain these in a form such that they can be provided to the Authority, or to a person named by the Authority, promptly upon its request. Notification Requirements 6. Dynamo consents to the Requirements being published by the Authority on the Financial Services Register. Effective Date 7. The Requirements in this application are to take effect immediately on their acceptance by the Authority and notification of such to Dynamo via email (the ‘Effective Date’). Definitions 8. Where relevant for interpreting this application, terms have the same meaning as in the Glossary to the Authority’s Handbook.