Company: FRFXF
Filing Date: 2025-10-01
Form Type: F-10
Source: 0001104659-25-095645
Chunk: 96

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-10-01
Form: F-10
Chunk 96
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’s syndicate (these are supplemented by Lloyd’s own rules, including certain principles in respect of customer outcomes). Although the scope and range of obligations imposed by the ICOBS rules vary according to the scope of the firm’s business and the nature of its clients, generally the rules include the need to provide clients with information about the firm, meet certain standards of product disclosure, ensure that promotional materials are clear, fair and not misleading, assess suitability when advising on certain products, manage conflicts of interest, report appropriately to clients and provide certain protections in relation to client assets. The rules in ICOBS were amended with effect from October 1, 2018 to implement Directive 2016/97/EU (the “

#### Insurance Distribution Directive
”). The key changes brought about by the Insurance Distribution Directive included the introduction of: (i) an overarching requirement to act in a customer’s best interest; (ii) additional requirements to ensure that individuals who sell insurance are fit and proper (including new continuing professional development standards); (iii) a requirement for distributors to have in place product governance processes to ensure that policies are designed for their target audience; and (iv) information disclosure requirements providing for the delivery of simple, standardized policy summary documentation to retail customers. In addition, the Insurance Distribution Directive removed “introducing” as a regulated activity.

In July 2022, the FCA published policy statement “PS 22/9: A New Consumer Duty,” setting out a new consumer duty which is intended to: (a) have a significant impact on how firms (including insurers and insurance intermediaries) interact with retail customers; and (b) set higher expectations for the standard of care firms give to such customers over the lifecycle of their products. The consumer duty is consistent with the FCA’s continuing focus on outcomes for consumers (e.g., that they are sold products that provide valuable benefits at an appropriate price, that they receive the service and support promised or to be reasonably expected and that there are no barriers to them cancelling or deciding not to renew). Firms need to be able to demonstrate how their business models, the actions they take and their culture are focused on delivering good customer outcomes. The FCA believes that an outcome focused approach will also have benefits for firms as it will give them ‘greater flexibility to adapt and innovate.’ Firms have been required to apply the consumer

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duty to: (a) new and existing products and services that are open to sale (or