Money Bag – Pounds
Review which found “significant shortcomings” cost the regulator £417,669.
The Financial Conduct Authority (FCA) spent over £400,000 on the thematic review looking into appointed representatives (AR) in the general insurance sector, Insurance Age can reveal.
A response to a Freedom of Information (FoI) request conducted by Insurance Age detailed that the regulator spent £417,669 on the review.
It explained that the costs were based on the time recorded by the staff involved as well as expenses by the FCA team that did the firm visits as part of the review.
Shortcomings
In July last year, the FCA published the results of the review and attacked the control and oversight of ARs by principal firms in the insurance sector, saying it had found “significant shortcomings”.
The regulator stated it had sampled 15 firms and taken direct action against five.
When asked which firms it had taken action against, the watchdog declined to give Insurance Age this information, explaining that “the disclosure of the information could prejudice the commercial interests of the firms concerned, were it to be made public”.
However, in October last year it was reported that UK General had been ordered to look into alleged mis-selling by its ARs and have a third party conduct a “skilled person” report into it.
Welcome
At the time of the publication of the results of the review, AR network leaders welcomed the findings, with Momentum Broker Solutions managing director Howard Pepper noting that the report “emphasised the need for ARs to work with an experienced, focused principal firm”.
In addition, brokers branded the review, which led to one firm withdrawing from the general insurance sector, two companies being ordered to cease sales activity, and two 166 skilled person reviews, as “fair”.
Article care of insurance age.
