The UK’s Financial Conduct Authority (FCA) has placed growth restrictions on Markerstudy, halting the insurer’s acquisition-driven expansion plans, reported the Financial Times.

The action follows concerns about shortcomings in leadership structures, governance and internal financial controls, issues that have reportedly arisen from the UK-based company’s acquisition strategy.

The FCA’s measures include capping both customer numbers and capital levels within Markerstudy’s UK operations.

These constraints will remain until the identified governance and control issues are addressed to the regulator’s satisfaction, as per the report.

The latest restrictions were introduced as voluntary agreements recorded on the FCA’s public register, specifying that regulated entities must not increase their customer policy count or alter agreed-upon capital levels without explicit regulatory approval.

In an e-mailed statement to Life Insurance International, a spokesperson for Markerstudy said: “Markerstudy has grown strongly in recent years and we maintain a close and collaborative dialogue with the regulators, part of which is agreeing appropriate levels of growth.

“As part of this, a cap has been agreed with the FCA that both parties consider appropriate and consistent with our strategy and customer-focused growth ambitions. We continue to operate at mandatory solvency margins and carry a buffer in line with regulatory requirements.”

The FCA restrictions apply to more than a dozen entities under the Markerstudy umbrella.

Among them is Brightside, an insurer originally co-founded by Arron Banks.

Another entity impacted by the decision is Atlanta Group, the company behind the Swinton, Marmalade and Healthy Pets brands.

Markerstudy purchased Atlanta Group in 2024 for £1.2bn ($1.6bn).

Founded in 2001 by Kevin Spencer and Gary Humphreys, both previously associated with Lloyd’s of London underwriting, Markerstudy has expanded quickly since being acquired by Pollen Street Capital in 2021.

Benny Higgins, formerly chief executive at Tesco Bank, currently chairs the board.

Markerstudy serves over eight million policyholders across multiple sectors including home, car and pet insurance.

According to its 2024 financial accounts, the insurer recorded a post-tax loss of £141.7m on revenue totalling £694m. A significant proportion of this loss was attributed to interest payments of £136m on debts nearing £1.4bn.

Businesses affected by the regulatory restrictions extend to BISL (operator of Budget and Dial Direct brands), Hughes Insurance Services (acquired in 2024) and Insurance Factory (owner of Purely Pets).

The FCA did not provide comment on the situation.

Recent months have seen increased regulatory focus on insurance providers after consumer advocacy group Which? raised concerns about widespread failures and customer service problems within segments such as travel and home insurance.

The caps by the FCA could also impede Markerstudy’s initial public offering (IPO) plans.

A report by Bloomberg in November 2025 suggested the insurer was considering a public listing with a potential valuation of around £3bn.

However, a source close to the company has now indicated the company has no immediate plans for an IPO.