The FSA would be unable to rely on information supplied by GISC about brokers and insurers involved in disciplinary proceedings, according to experts.
Last month, it was revealed that GISC was seek ...
The FSA would be unable to rely on information supplied by GISC about brokers and insurers involved in disciplinary proceedings, according to experts.
Last month, it was revealed that GISC was seeking legal advice regarding passing details of ongoing investigations to the FSA.
But brokers and insurers involved in unresolved GISC investigations will have the right to have their case heard again by the FSA, said Compliance specialists D3 Group. It said information passed to the FSA by GISC would only assist the FSA by "signalling issues that the FSA needs to investigate".
"GISC processes fail to comply with the European Convention on Human Rights (Article 6) in several key respects," D3 Group regulation and ethics adviser Joe Egerton said.
"The FSA cannot rely on the finding of a non-Article 6 complaint body. Anyone done by GISC has the right to have the entire case heard afresh."
A GISC spokeswoman said: "Any information we gave to the FSA would be factual data. We would expect the FSA to want to make its own inquiries."
But Egerton warned brokers and insurers that failing to reveal details of involvement in GISC disciplinary proceedings on an application for authorisation would be an offence.
"If someone failed to disclose that GISC had issues with them that would breach FSA rules," he said.
There are currently around 150 insurers and brokers involved in unresolved GISC disciplinary procedures that are considered "not in good standing".
