Crackdown Planned for Illegal Insurance Brokers
Financial watchdog to 'clean up' the insurance industry
8th July 2005
The Financial Services Authority (FSA) says that it is planning a crackdown on illegal insurance brokers, and has already paid visits to over 500 businesses to assess their legality, with more visits planned.
Regulation of the general insurance industry began in January this year, and since then, any company or person who wishes to conduct business in the insurance area must be authorised by the FSA.
The FSA say that it is not just 'primary' brokers (those whose main business is selling insurance policies) that they are investigating, but other businesses such as travel agents, motor dealers and retail outlets that may offer an insurance product as a sideline.
Firms found to be in breach of the law will not necessarily be shut down - where the breach is as a result of a genuine misunderstanding or mistake, the offender will be given the option of obtaining authorisation.
The FSA says its initial target firms are those which applied for authorisation but had their application rejected, or it was withdrawn before a decision was made.
Read More: FSA Press Release
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