Appointed representatives - your responsibilities as principal
December 2007
Our recent review found that principal firms are not doing enough to ensure their appointed representatives (ARs) are treating customers fairly in the sale of general insurance, mortgage and investment products.
By the end of December 2008 we expect all firms to be able to demonstrate they are achieving the six Treating Customers Fairly outcomes. Principal firms need to ensure they have appropriate controls in place and management information that enables them to be confident their ARs are treating their customers fairly ahead of the deadline.
- Our updated factsheet can help your firm in its duties as principal.
- The findings below give examples of good and poor practice we found.
Good and poor practice examples
Areas reviewed
Types of firm
- Investment
- Mortgage
- General insurance brokers
- Secondary insurance brokers (e.g. removals, property management, plant hire)
- Motor retailers
Key areas that need improvement:
- Making sure written procedures are adhered to in practice.
- Having suitable, risk-based monitoring of ARs, rather than just using just remote checking of client files.
- Making more progress towards Treating Customers Fairly with more effective communication to ARs.
- Using appropriate management information or other measures to test whether ARs are delivering the Treating Customers Fairly consumer outcomes and working towards the end of December 2008 deadline.
For more detail on the work we did, view our press release.