Critical financial rules for GI brokers’ FCA compliance

This comprehensive and interactive session will focus on the critical financial aspects of FCA rules - overall business solvency (compliance with adequate resources Threshold Condition 2.4), professional indemnity requirements/limits/issues (incl covid cover) and the onerous client money handling rules under CASS 5.

The FCA has had deep concern with brokers’ financial resilience and have regularly undertaken reviews since the onset of covid to include their Dear CEO letter of 30 September 2020. Following the Finch High Court case (an appeal could be made) and the hole of £3.5m found in the client account, and the award of £6.1m damages to the acquiring party, this case will highlight exactly what can go wrong.

Learning objectives - by the end of this session you will gain insights into:

• What are the FCA’s concerns – the financial resilience and client money surveys;
• Solvency and meeting adequate resources TC2.4;
• Professional Indemnity Insurance – issues and limits;
• CASS 5 – what is client money, how Risk Transfer can go wrong, what are monies held at third parties and what actually do you need to do to comply (incl audits).

It is relevant to general insurance brokers/intermediaries, their insurers and any other market participants.