Compliance

FCA Compliance

All brokers will be aware of their obligations to comply with industry regulators, in particular the FCA.
In May 2014, the FCA Thematic Review reported on conflicts of interest and remuneration. The report can be accessed below:
Commercial insurance intermediaries - Conflicts of interest and intermediary remuneration

The report is extensive, covering many areas including placement and tender processes. Whilst not always explicitly stated, the perceived expectations include the following which we build in to our tender review process to help you fulfil your obligations:

• Tender process to be fully documented and evidenced
• Detailed preparatory work focused on customer needs rather than remuneration
• Decision made on merits of products, services and price rather than remuneration, that should be kept separate
• Decision making process to be evidenced with clear audit trail and scoring mechanism
• Customers to understand the nature of the service being provided with clear disclosure of work performed in placing their policy
• Placement to be with insurers with good security
• Formalised, detailed, documented review process including re-tendering arrangements
• Chinese walls to operate for over-riders, contingent commissions and work transfer fees

We work closely with your staff to address these FCA expectations.

Our robust tender review process includes:

• Collating input from your customer facing staff
• Fully documented process
• Detailed tender document
• Weighted scoring mechanism
• Separate notification of remuneration from the tender responses
• Reports and minutes from meeting
• Recommendations with rationale

Whilst Mark Ace Consulting Ltd cannot be held responsible for you meeting your FCA obligations, in our role of managing competitive tenders we pay due regard to the FCA expectations in the way we conduct the tender review process, helping you towards compliance.

For further information, please contact:
linda@markaceconsulting.com Tel: 07774 736825 or
mark@markaceconsulting.com Tel: 07502 456476