The Supreme Court has confirmed that extended warranties on consumer goods can be “contracts of insurance” falling under the regulation of the Financial Services Authority (“FSA”).
In Re Digital Satellite Warranty Cover Limited  UKSC 7, the court found that extended warranties for the repair and replacement of satellite television equipment were regulated insurance contracts for the purposes of the Financial Services and Markets Act 2000. It upheld winding-up orders secured by the FSA against the providers of the warranties on the grounds that they did not have the necessary FSA authorisation.
Our briefing, which considers the judgment and its regulatory implications for those who sell or perform extended warranties on consumer goods and appliances, can be found here.
Unregulated providers and sellers of extended warranties should consider whether they need to be FSA-authorised, either directly or indirectly under the appointed representatives regime. A copy of the Supreme Court’s decision is available here.