FCA thematic review – appointed representatives (general insurance)

In its thematic review of principal firms in the general insurance sector, the UK's Financial Conduct Authority (FCA) found significant shortcomings in their understanding of responsibilities for their appointed representatives and oversight of their activities.

More than half of the 15 principal firms in the sample could not consistently demonstrate that they had effective risk management and control frameworks to identify and manage the risks arising from their appointed representatives' activities. They also found examples of potential mis-selling and customer detriment as a result of appointed representatives' actions at a third of the principal firms included in the review, with most of these issues not previously identified. The findings are located at: www.fca.org.uk/your-fca/documents/thematic-reviews/tr16-06