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FSA condemns professional negligence

Published on 29 Jan 2010 under category: legal

A long-running investigation by the Financial Services Authority (FSA) found that many insurance brokers and investment firms' service was 'unacceptable'.

The FSA study followed a letter sent out in March 2009, setting out firms' duties towards customers' money and assets and their plans to conduct more visits throughout the year.

In the report published last week, the financial standards body said it had found serious failings within many firms. Among them, it identified poor management oversight, unclear arrangements for maintaining client money and poor record-keeping.

The FSA has since sent a letter out to chief executives of insurance brokers and investment firms highlighting its concerns over the handling of clients' money.

Sally Dewar, managing director of risk at the organisation, said: "The client asset rules are a key protection for consumers. It is simply unacceptable that firms are not ensuring that consumers get the appropriate protection.

"We have pointed out our concerns to firms and will be following up these concerns with further visits this year."

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