Biba has relaunched its client money tracking protocol, designed to help members adhere to the FSA's client money rules.
The FSA's rules require intermediaries to seek confirmation that ‘client money' paid to other intermediaries has been remitted to insurers.
Biba chief executive Eric Galbraith said: “The ‘Dear CEO' letter recently issued by the FSA on client money highlighted this area as being one where there are problems with rule compliance.”
To avoid wholesale brokers having to face requests in a multitude of different formats, the London Market Insurance Brokers' Committee developed a model procedure at the end of 2004, following discussions with wholesalers, retailers and the FSA.
Biba said that since then, the protocol has been well received and firms have been working hard to implement it.
Steve White, Biba regulation and compliance manager, said: “It is clear that the FSA expects this aspect of the rules, as with all of its rules, to be complied with and no doubt it will consider regulatory intervention, ie the imposition of a rule, if the market cannot work collectively and swiftly to comply”.
He added: “At Biba we feel it is in the collective best interests of all intermediaries – both wholesalers and retailers – for a market-led solution to be found, rather than waiting for regulatory intervention. It is for this reason that we are now relaunching the procedure across the wider market.”
