FSA to increase contract certainty pressure, says Moore Stephens

Moore Stephens has questioned the London market's ability to meet the FSA's contract certainty deadline.

The accountancy and consultancy firm has indicated that the regulator may implement a more draconian enforcement regime later this month.

Moore Stephens insurance industry group partner Simon Gallagher said: “Firms should have systems in place whereby any failure to achieve contract certainty is reported. They should be confident that they have adequate training procedures to educate their staff in this respect, and to help staff manage the process rather than being exclusively target-driven.

“Firms should understand where contract certainty sits within the overall risk management structure, and be aware of associated risks, such as fraud, which might flow from a failure to have the proper procedures and systems.

“There must be a general understanding throughout the firm that contract certainty is not merely a box-ticking exercise. Firms should be looking to meet the targets, and to go beyond them where appropriate to identify areas of potential risk. It is better to be certain than sorry.”