For the benefit of transparency and accessibility, Soulton Hall is publishing the full text of a letter received from the Financial Conduct Authority (FCA), dated 22 April 2026.
This record is particularly relevant to policyholders who were not part of class actions and who may have relied on earlier communications regarding the validity of their claims or the expiry of limitation periods.
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- FCA April 2026 letter page 1
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- FCA April 2026 letter page 2
Full Text of Correspondence
Financial Conduct Authority
12 Endeavour Square
London
E20 1JN
22 April 2026
Timothy Ashton [Address Redacted]
Dear Mr Ashton,
Thank you for your letter dated 21 March 2026 and for taking the time to bring your concerns to my attention.
You have set out your concerns about the potential detriment that may be caused to NFU Mutual customers, given that the FCA communicated in January 2026 that we will not intervene to mandate how firms should conduct litigation, particularly in relation to any limitation defences raised.
You have suggested that NFU Mutual instructed policyholders not to make a claim, aggressively communicated that its policies would not respond to business interruption claims, and that it has prevented its approach being scrutinised at AGMs.
Our letter of January 2026 was, of necessity, a statement of our general position, and not intended as a statement of our position irrespective of the particular circumstances of a case. Our letter emphasised our expectations of firms in relation to considering their obligations under our rules, which include fair claims handling and providing reasonable guidance to customers.
We expect that firms will need to take into account the particular circumstances of each claim. We will take action as appropriate where we consider that firms have not complied with our rules in a way that has caused harm.
In terms of your request that guidance is issued prior to the trial date you refer to, we do not consider that this would be appropriate in relation to firm specific matters. We consider that it is clear how we expect firms to comply with our rules from the information we have already published on our website on business interruption claims.
I also note the points you have made in relation to accessibility of the NFU website. We take accessibility issues very seriously, and firms’ communications should not create unnecessary obstacles or difficulties.
In view of the points you have raised, I can confirm that we will use this information as part of our ongoing supervisory work with NFU Mutual.
Whilst I understand your interest in any developments regarding NFU Mutual on these points, strict confidentiality requirements mean I will not be able to share the substance of those enquiries, including any outcome. This is because the FCA is restricted by law from disclosing confidential information, including both confidential information we receive from firms, and contained in any reasoning, conclusions or actions drawn from that confidential information received.
I trust it is apparent that we will give due consideration to any potential harm arising from the approach you are suggesting has been taken by NFU Mutual to the management of business interruption claims.
Yours sincerely,
Graeme Reynolds Director,
Competition and Interim Director, Insurance
This letter provides an important clarification.
The FCA’s “general position” stated in January 2026 was never intended to permit firms to ignore their specific obligations of fair claims handling.
Crucially, the regulator has acknowledged that they will consider “any potential harm” arising from the specific approach taken to the management of these claims. For those who believe they were provided with inaccurate information or faced “unnecessary obstacles” when attempting to assess their cover, this correspondence confirms that such matters are now part of the FCA’s ongoing supervisory work.
