Daily Insurance Industry News
 
 
Daily Insurance Industry News
Friday 19th of January 2018
December 15, 2012

68% of insurers scale back Solvency II implementation

by Gill Montia

Story link: 68% of insurers scale back Solvency II implementation

New research from PricewaterhouseCoopers claims that the majority of insurers now expect Solvency II to fully come into force in 2016. Furthermore, 68% of insurers surveyed have scaled back their implementation programme with this in mind. Certainly, a delay in Solvency II 2014 reporting would be welcomed given that 58% of respondents won’t be ready […]



December 3, 2012

FSA consults on product intervention rules

by Gill Montia

Story link: FSA consults on product intervention rules

The Financial Services Authority (FSA) is consulting on the approach the future Financial Conduct Authority (FCA) will take if it needs to make temporary rule changes to a financial product before consultation. The Financial Services Bill includes this power as part of the FCA’s toolkit but rules made before consultation will last for no longer […]



November 15, 2012

FSA fines Card Protection Plan £10.5 million

by Gill Montia

Story link: FSA fines Card Protection Plan £10.5 million

Plastic card and identity theft insurer, Card Protection Plan Limited (CPP), has been fined £10.5 million by the Financial Services Authority (FSA) for mis-selling insurance products. The regulator found widespread mis-selling of CPP’s two main UK products between January 2005 and March 2011 as follows: CPP sold its card protection product by emphasising that customers […]



October 20, 2012

FSA fines Sun Life of Canada £600k for governance failings

by Gill Montia

Story link: FSA fines Sun Life of Canada £600k for governance failings

The Financial Services Authority (FSA) has fined Sun Life Assurance Company of Canada (UK) Limited (SLOC UK) £600,000 for failings in the governance of its with-profits business. According to the regulator, the design and operation of SLOC UK’s governance arrangements were “unclear and inadequate”, resulting in a high risk that policyholders’ interests weren’t protected properly. […]



September 5, 2012

FSA attacks sales incentives

by Gill Montia

Story link: FSA attacks sales incentives

The Financial Services Authority (FSA) is on the offensive over sales incentives that result in mis-selling. At an event in London this morning, FSA managing director and chief executive officer designate of the Financial Conduct Authority, Martin Wheatley, announced plans to tackle poorly designed schemes that can result in customers being sold products they don’t […]



July 30, 2012

Governments agree new tax compliance model

by Gill Montia

Story link: Governments agree new tax compliance model

The governments of France, Germany, Italy, Spain, the UK and the US have published a joint communiqué outlining a new model of tax compliance, relating in particular to the implementation of the US Foreign Account Tax Compliance Act (FATCA). According to HM Treasury, the model sets out a framework within which: 1. The legal barriers […]



July 29, 2012

Solvency II training for insurers’ boards inadequate

by Gill Montia

Story link: Solvency II training for insurers’ boards inadequate

The majority of insurers are not doing enough to bring their boards up to a suitable level of Solvency II understanding, according to KPMG, which points out that failings in this area are jeopardising insurers’ chances of gaining a competitive advantage and ensuring regulatory compliance. In a recent report, the accountancy firm claims that 80% […]



July 28, 2012

New rules for banks selling insurance in packaged accounts

by Gill Montia

Story link: New rules for banks selling insurance in packaged accounts

From 31st March 2013, banks and building societies selling packaged accounts will have to adhere to new rules just published by the Financial Services Authority (FSA). Around one in five UK adults have a packaged account, which is current account bundled up with a range of insurance policies and other features. The regulator wants to […]



July 24, 2012

FSA fines former commercial broker £472,000

by Gill Montia

Story link: FSA fines former commercial broker £472,000

The Financial Services Authority (FSA) has banned and fined a former commercial insurance broker who used clients’ insurance premiums to fund his business. Stephen Goodwin, a former partner of Goodwin Best based in Bury, Lancashire, has been fined £471,846 for his failings and has been prohibited from working in regulated financial services. Between 2008 and […]



June 27, 2012

FSA consults on changes to platforms market

by Gill Montia

Story link: FSA consults on changes to platforms market

The Financial Services Authority (FSA) is consulting on proposals that would help investors make fully informed choices should they wish to consolidate their investments on a platform and understand exactly what they are paying for the service. Currently, providers of investment products generally pay to have their products included on a platform, with the cost […]



June 23, 2012

Consumer alert regarding FCV Broker

by Gill Montia

Story link: Consumer alert regarding FCV Broker

Lloyd’s has issued a consumer alert regarding a firm styling itself as FCV Broker which on its website www.fcvbroker.com offers various “wealth management services” which include financial and retirement planning. The firm states that it is authorised and regulated by the Financial Services Authority (FSA) with registration number 571262, however the FSA has confirmed that […]



May 14, 2012

FSA fines and bans Scottish broker

by Gill Montia

Story link: FSA fines and bans Scottish broker

The Financial Services Authority (FSA) has fined Donald McKee Morgan, a partner in the firm of Donald Morgan Insurance Services (DMIS), £335,204 for insurance fraud. Mr Morgan, whose business was based in Ayrshire, Scotland, has also been banned from carrying out any regulated financial services activity in the future, as has his wife and sole […]



April 11, 2012

FSA reviews prescribed rates of return

by Gill Montia

Story link: FSA reviews prescribed rates of return

The Financial Services Authority (FSA) is reviewing the prescribed rates of return that financial services firms must use in their calculations when providing retail customers with projections of future benefits. Following a report prepared by PricewaterhouseCoopers, the regulator is considering evolving market conditions, latest academic research and other factors, to determine whether the assumptions used […]



February 16, 2012

Margaret Cole to quit FSA

by Gill Montia

Story link: Margaret Cole to quit FSA

Margaret Cole is quitting her job at the Financial Services Authority (FSA) later this year. Ms Cole joined the FSA in 2005 as director of enforcement and currently holds the post of interim managing director, Conduct Business Unit. Commenting on her departure, she says: “I joined the FSA to help in the fight against wrongdoing […]



January 19, 2012

Direct Line and Churchill fined for file tampering

by Gill Montia

Story link: Direct Line and Churchill fined for file tampering

The Financial Services Authority (FSA) has imposed a fine of £2.17 million for failings by insurers Direct Line and Churchill, both of which are owned by Royal Bank of Scotland (RBS). According to the regulator, the firms failed to prevent files that the FSA had requested from being improperly altered. During the collation of 50 […]



December 12, 2011

FSA’s RBS report considers role of institutional shareholders

by Gill Montia

Story link: FSA’s RBS report considers role of institutional shareholders

In its long-overdue report into the failure of Royal Bank of Scotland (RBS), the Financial Services Authority (FSA) comments on the role of shareholders in the bank’s disastrous acquisition of ABN AMRO. According to the regulator, RBS had the support of its institutional shareholders over its battle with Barclays for ownership of the Dutch bank, […]



December 2, 2011

High Court throws out Sky TV warranty appeal

by Gill Montia

Story link: High Court throws out Sky TV warranty appeal

The Court of Appeal has dismissed appeals by Digital Satellite Warranty Cover and Satellite Services. The businesses, which are not registered with the Financial Services Authority (FSA), provided cover for Sky satellite TV equipment, in return for an insurance premium. Both firms described their offerings as “extended warranties” but in January, the FSA secured winding […]



November 29, 2011

FSA: strict new rules on traded life policy investments

by Gill Montia

Story link: FSA: strict new rules on traded life policy investments

The Financial Services Authority (FSA) has published strict new rules on the sale of traded life policy investments (TLPIs) to UK retail investors. The regulator reckons TLPIs are “high risk, toxic products” because investors are effectively betting on when a particular set of US citizens will die. They are also known as “death bonds” because […]



November 24, 2011

Aviva’s Sir Nick appointed FOS chairman

by Gill Montia

Story link: Aviva’s Sir Nick appointed FOS chairman

The Financial Services Authority (FSA) has appointed Sir Nicholas Montagu as the new chairman of the Financial Ombudsman Service (FOS). He will succeed Sir Christopher Kelly who steps down in January 2012, after seven years in the role. Sir Nicholas is currently the chairman of the Aviva UK Life With-Profits Committee and a director of […]



November 17, 2011

Broker banned for insurance fraud

by Gill Montia

Story link: Broker banned for insurance fraud

The Financial Services Authority (FSA) has fined John Folan £195,117 for insurance fraud and prohibited him from carrying on regulated financial services activities. The penalty comprises a £70,000 fine and a disgorgement of £125,117 which Mr Folan obtained through commission when working as a director and adviser at Brentwood-based Key Mortgage Associates. Between January 2008 […]