Broker in FCA dispute has authorisation cancelled

Essex-based broker Larksway has had its authorisation cancelled by the FCA.

The broker and the FCA have been in a long-running dispute over a decision made in favour of the customer by the financial ombudsman service (FOS) in December 2014.

An award was granted to the customer, relating to the sale of a home insurance policy, but Larksway refused to comply with that award.

And in a final notice sent to the broker yesterday, the FCA confirmed it was stripping the broker of FCA authorisation due to its failure to comply, despite repeated requests from the FCA and FOS.

In its summary of reasons for the decision, the notice added: “The authority is not satisfied that Larksway is a fit and proper person having regard to all the circumstances.”

And it added: “Larksway has failed to satisfy the authority that it is conducting its affairs in an appropriate manner, having regard to the interests of consumers.”

The FCA had already banned Larksway from serving as an insurance broker in September last year, and a winding up order was then made against it in December 2017. Critchleys was appointed as liquidators in February this year.

The FCA said it took this action because Larksway failed to deal with it in an “open and co-operative way” regarding concerns over its handling of customers’ insurance premiums and ability to make payments.

Larksway had itself made a complaint against the FCA as part of the dispute, but this was rejected in August this year.