Internal investigation puts Marsh in the clear over MSAs

An internal investigation into the UK arm of Marsh & McLennan said abuse of market service agreements (MSA) was not evident at the firm.

UK chief executive of Marsh, Bruce Carnegie-Brown, ordered the investigation into the practice after the New York attorney general said he had found evidence of bid-rigging at the company's US branch.

The report, carried out by UK law firm Freshfields, said no evidence of bid-rigging had been found in Marsh.

It recognised that MSAs were a longstanding practice at Marsh and questioned whether its clients had been treated fairly as a result of the practice.

The report said that adequate disclosure about the nature of MSAs had been given to Marsh clients.

It also said that MSAs were a significant source of income to Marsh, and appreciation of that income was widespread.

But, it said, “the general policy within Marsh was to seek to act in the interests of its clients and to place business with underwriters who were selected to serve the clients best interests having regard to the price; the scope of cover; financial security; and service.”