FSA enforcer urges whistleblowing on rogue brokers

The FSA is urging insurers to whistleblow on suspicious brokers following the latest successful prosecution of a fraudulent insurance broker fined £195,000.

Insurance and mortgage broker John Folan was last week fined after faking policy documents and then raking in the commissions.

Head of FSA retail enforcement Tom Spender said since 2010, 15 insurance brokers and directors had been banned or fined heavily for fraud.

He said:  “We have been encouraging information from insurers as a project, where if insurers identify poor broking standards or have concerns about fraud, they can report that to us.

“And for example, the Folan case itself began with intelligence from the industry. So we often have tip-offs from the industry on an anonymous basis or whistleblowers. In this case, it gave us enough to pursue the case.”