Many readers of this case may well view it as ‘another uniquely special case’ that is really not relevant to their own firm’s situation. However the issues raised by the FCA here around Insurer TOBAs are relevant to all firms.
All brokers commingling client money and risk transfer money and all agents relying on 100% risk transfer (to avoid the need to hold FCA client money permission) must ensure that they have the required written terms with insurers. They must pay particular attention to the detailed terms in TOBAs and binder wordings as these are a ‘CASS Compliance Minefield’ for the unwary firm! The issues that the FCA highlight in relation to Insurer TOBAs in the One Call case have been raised by them many times before going back as far as 2005. The large fines imposed on the firm and the individual should give Finance and Compliance Officers of all UK brokers and agents good reason to take a very close look at the detail of their insurer TOBAs and binder wordings with all insurers. If management have not given detailed attention to this before, when they do, they will almost certainly find they have real issues to resolve to obtain the CASS compliance for which they are responsible.
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