Financial Conduct Authority (FCA) Compliance

Financial Conduct Authority (FCA) Compliance

Since 14th January 2005 the FCA has regulated insurance intermediaries.

The Compliance Service provided by us is primarily intended for insurance intermediaries conducting insurance mediation activities in relation to general insurance contracts or pure protection contracts (except long term care insurance), collectively known as “non-investment insurance contracts”, from a permanent place of business in the UK.
We will help support insurance intermediaries who are authorised by the FCA to comply with the applicable rules contained in the FCA Handbook of rules and guidance (the Handbook).

Full Risk Assessment Audit

This risk assessment audit is measured against the FCA’s ‘Insurance Conduct of Business [“ICOB”]’ rules regulating the selling and administration of non-investment insurance contracts. The ICOB rules apply to insurance intermediaries

Audit objectives

  • The business system under review exists and is adequate;
  • The business system under review is used; and,
  • The business system under review functions in the way it was intended.

During our initial assessment, we provide our findings and recommendations.

Systems, Procedures, and Periodic Reporting

Retail Mediation Activities Return [“RMAR”]

We will assist insurance intermediaries to prepare systems and procedures to ensure that the RMAR is submitted to the FCA at the correct time. Information required from firms that carry on retail mediation activities includes:

  1. Financial data;
  2. Compliance with threshold conditions;
  3. Information on conduct of business; and,
  4. Training & competence.

The RMAR’s are intended to collect the information that is needed for the FCA to perform adequate baseline monitoring at a firm and industry level. Because of the importance of regulatory reporting in the FCA supervision strategy, the FCA will place considerable emphasis on ensuring it receives information that is timely and accurate.

RMAR Reporting Frequency

Half yearly, although the smaller firms need only submit financial information at their accounting reference date during the first financial year (i.e. small firms are not initially required to submit mid-year financial information).

Our objective is to ensure that the service offered is to a high standard and that there is full adherence to the FCA requirements.