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FSA warns firms must do more to ensure ARs are treating customers fairly |
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An FSA review has found firms are not doing enough to ensure their Appointed Representatives are treating their customers fairly with four firms facing enforcement.
The review found the poorest standards in the general insurance market with a better picture in the mortgage market and the best standards in investment firms.
The FSA says as a result of the review four firms are being considered for referral to enforcement and follow-up visits will be made early next year to 11 firms that were identified as needing “significant remedial action”.
The review looked at four areas- systems and controls, recruitment, training and competence and treating customers fairly.
The FSA says key concerns included written procedures not being followed in practice, too much reliance placed on the remote checking of client files as the sole method of monitoring ARs, poor progress with TCF with ineffective communication to ARs and not having appropriate measures in place to test whether ARs are working towards the FSA’s December 2008 TCF deadline.
The review mainly involved small firms and followed up similar work in 2006.
FSA director small firms division Stephen Bland says: “It is disappointing that failings still persist despite the help and information available from the FSA. We have set a deadline of end December 2008 by which time we expect all firms to be able to demonstrate that they are achieving the six TCF outcomes.
"Principal firms therefore need to act now to ensure that they have appropriate controls in place and management information that enables them to be confident ahead of the deadline that their ARs are treating their customers fairly.”
Source: Money Marketing |
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