Number of broker conduct breaches queried

Insurance brokers and intermediaries reported 15 conduct rule breaches between 9 December 2019 and 31 August 2020. This is from a universe of more than 6,000 solo-regulated insurance intermediaries with a regulatory responsibility to inform the FCA each year of any conduct breaches by certified staff. The figures come from a freedom of information request by consultant Sicsic Advisory.

The firm urged brokers to get serious about the Senior Managers & Certification Regime and the onus it puts on them.

Nindy Mellett, senior consultant at Sicsic Advisory, said: “Fifteen reports from the entire GI intermediaries’ population feels very low and indicates that some firms may not have robust processes in place to capture and report conduct issues.

“Firms may be worried that their reporting would be out of step with other firms who have similar issues but might not be reporting them as a breach. The reality is the FCA is more likely to step in and investigate firms which report a lower number of breaches than would be expected for an organisation of its size, and it will continue to focus on conduct if reporting remains this low.

“This possible reporting gap we’ve spotted is very much a warning for firms to get serious about SM&CR. Now is the time to act.”

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