Aon’s reaction to £5.25m fine

by David Masters

Story link: Aon’s reaction to £5.25m fine

Aon has confirmed that it agreed to pay a £5.25 million settlement to the Financial Services Authority (FSA) because of failings in its risk management systems between January 2005 and September 2007.

Responding to the fine, Aon issued a statement admitting to failings in its past systems and controls, which led to inappropriate payments being made to non-FSA-authorised overseas third parties.

The company added that its behaviour was neither deliberate nor reckless, as confirmed by the FSA.

Aon’s senior management is ‘determined’ to ensure that similar problems never happen again, the statement read.

Its work with third parties is now subject to stronger controls, including an anti-corruption programme, risk-based review procedures, and restrictions on the use of overseas third parties.

Aon CEO, Peter Harmer, said the company ‘recognises and regrets’ its failings.

He added that Aon is ‘pleased’ that its solutions to the problems it was fined for are now held up as a model of best practice by the FSA.