A “significant number” of small wholesale brokers must take action to remedy failings in their handling of client money, the FSA has warned.
The regulator’s latest newsletter for smaller wholesale intermediaries says its concerns have been prompted by a client money self-assessment exercise sent out to 120 smaller wholesale insurance intermediaries.
The firms were required to review their client money arrangements and to report their findings to the FSA.
The newsletter states: “We have reviewed the completed assessments and identified a significant number of firms that require some form of remedial work. Some of these firms have already been contacted and actions taken, with others to be contacted over the coming months.”
Where, the FSA has “significant concerns” over the information contained in a firm’s response, it has been referred to the FSA’s Client Asset Unit, which may trigger a visit.
Concerns identified as a result of the self assessment include failure to properly document and record the client money trust, to complete a full and correct client money calculation on a timely basis, and to arrange a client money audit.
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