The Marsh & McLennan scandal has sent alarm bells ringing in the UK and highlighted broking commission practices. But how much do you know about insurance conduct of business (ICOB) rules?
With the filing of civic charges against Marsh & McLennan Companies by New York's attorney general, the world spotlight has once again turned on an insurance scandal. The furore highlights broking commission practices. Alarm bells have rung here in the UK and the FSA is reported to be monitoring the situation.With insurance intermediaries to be regulated by the FSA under the IMD from January 2005, what are the requirements of the new regulator in terms of commission and status disclosure, which has caused such an uproar in the US? Test your knowledge of the principles and practices embedded in the ICOB ruleswith the questions below from brokerASSESS.The answers will be published in next week's issue, so you can see how well you did, or the areas you need to brush up on.' BrokerASSESS is an online training and competence system, developed by Biba and the CII in association with RWA. Through broker-specific learning and assessments, it helps meet T&C requirements for FSA regulation. FSA-authorised firms must establish systems and controls to ensure the competence of staff, providing robust evidentiary proof of adherence to the T&C commitments.