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ARTICLE · 17 MARCH 2009

Major Changes To The Systems & Controls Regime For Insurance Intermediaries

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From 1 April 2009, insurance intermediaries will be subject to a more stringent systems and control regime.

United KingdomInsurance
Kapil Dhir
Kapil Dhir

From 1 April 2009, insurance intermediaries will be subject to a more stringent systems and control regime. As a matter of urgency, they should therefore focus attention on the size of fines given out by the FSA to firms in breach of Principle 3 of the general "Principles for Business" in the FSA Handbook. This Principle states that "a firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems."

The Common Platform

The FSA is extending the common platform at chapters 4 to 10 of the FSA's Senior Management Arrangements Systems and Controls sourcebook (SYSC) to almost all firms regulated by the FSA. Notably the common platform will not apply to insurers, managing agents and the Society of Lloyd's until the outcome of the Solvency II Directive is known. At that point a consultation will be undertaken on extending the common platform to them.

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