FSA gets tough over client money handling
The Financial Services Authority (FSA) says it has sent a letter and report to the chief executive officers of major insurance brokers and investment firms that hold money or assets on behalf of clients.
The communication draws attention to the FSA’s concerns over the handling of both and follows a letter sent out in March of last year, setting out firm’s obligations regarding clients’ money and assets.
However, the regulator has since visited a range of firms and found a number of failings.
Details of the weaknesses discovered including: poor management oversight and control; lack of establishment of trust status for segregated accounts; unclear arrangements for the segregation and diversification of clients’ money; and incomplete or inaccurate records, accounts and reconciliations.
The FSA has already taken measures against a number of firms found wanting and is promising to increase its visits to firms in the months ahead.
Category: Financial Services Authority News, Insurance News
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