FSA - brokers urged to verify compliance

Article date: 21 July 2005

Norwich Union, working with PWC, has provided an onlinechecklist to enable brokers to assess whether they are fullycompliant with the FSA, helping to prevent them falling foul ofvisits from the FSA.

Site visits and contact with brokers by Norwich Union haverevealed there are still many regulatory issues and concerns thatcould indicate non-compliance if scrutinised by the FSA.

Steve Edwards, broker development executive at Norwich Union,explains: "Our concern is primarily for small and medium sizedbrokers who have completed their own compliance requirements.Whilst on the surface they may seem to conform – all theboxes are ticked and authorisation has been granted – fromworking closely with brokers we are anxious that a visit from theFSA could reveal some problem areas.

"Currently high on the broker’s agenda is the requirementto collate material necessary by the ’ReportingRequirements’ part of regulation. If compiled inadequatelythis could highlight a number of issues and provoke investigationfrom the FSA.

"We are working in partnership withPricewaterhouseCoopers to provide support to brokers by helpingthem to understand where some of the gaps could be. We havedeveloped a checklist that helps brokers identify areas within therequirements of regulation that need further attention and foundthat one of the most common queries relates to client money.

"The checklist is available to brokers atwww.norwich-union.co.uk/ebroking along with further information,advice and FSA updates on topical issues such as unfair inducementsand conflicts of interest. If further assistance is required,PricewaterhouseCoopers can also provide on-site assistance in thisor any other area of concern."

Norwich Union is also providing:

  • Master classes: covering topical areas such as reportingrequirements. This first subject covered by PricewaterhouseCooperscan be seen on Broker TV at www.norwichunion.co.uk/e-broking
  • Health checks: PricewaterhouseCooper will visit brokers todiscuss an area of concern and offer advice.
  • On-site visit: PricewaterhouseCoopers will provide a mock FSAvisit.


For further information, please contact:
Clare Schofield at Staniforth on 0161 274 0100 or David Ross atNorwich Union on 01603 682730/07800 699665.

Notes to editors
About Norwich Union Insurance

  • Norwich Union is the UK's largest insurer with a market shareof around 13 per cent
  • With a focus on insurance for individuals and smallbusinesses, Norwich Union insures:
    • One in five households
    • One in seven motor vehicles
    • More than 800,000 businesses
  • Norwich Union products are available through a variety ofdistribution channels including brokers, corporate partners suchas banks and building societies and Norwich Union Direct.
  • Aviva, Norwich Union’s parent company, recentlyannounced its acquisition of the RAC. The acquisition bringstogether the RAC's powerful brand and customer base with theexpertise and leading position in motor insurance of Norwich UnionInsurance.
  • Norwich Union's news releases and a selection of images areavailable on the Aviva internet press centre atwww.aviva.com/media.
  • An ISDN facility is available for studio quality broadcast.Call the press office on 01603 682264

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