Have your say on the future of the Financial Services Compensation Scheme levy

Now is your chance to have your say on the future of the FSCS. Don't sit back and hope for the best - make sure that you seize the opportunity to make your comments heard.

The FCA is inviting responses on a number of options for changing both the funding of the FSCS and the coverage it provides to consumers.

The FCA client money rules have not changed, but, it has gone largely unnoticed that your Client Money Auditor now has several new tasks to undertake as part of your client money audit, which will mean much closer scrutiny of your client money systems and controls.

When was the last time you checked your firm’s standing data? Anyone that has benefited from an RWA health check will recognise that question.

In December 2016, the FCA published the findings of a review of general insurance intermediaries’ professional indemnity insurance. As part of the review, the FCA contacted 200 firms to assess PII arrangements.

If like me, you keep up to speed with the insurance press, you will have read recently the horrendous case of the Hertfordshire family broking firm who lost everything following discovery that a trusted senior staff member had spent some £273,000 of client money, largely poured into the coffers of Bet 365, to feed his addiction.

It is apparent that firms are coming under increasing attack; where firms have reported issues to the FCA, there is a year on year increase. As an example, in 2014 there were, according to FCA statistics, 5 reports and so far, in 2016, 75!

As reported in a previous newsletter, the European Court of Justice had decided that the previous framework called the ‘International Safe Harbour Privacy Principles’ was invalid. As could be expected, both the EU Commission and the US Government started talks about a new framework and on 2 February 2016 an agreement was reached on a new way forward.

Ever since credit broking became regulated by the FCA, all firms, including General Insurance Brokers, have to report their data to the FCA.

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