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AB Group Obtains FSA Authorisation

Posted: 03 January 2005

Author: Richard Hartley

More Information

For more information about Regulation of the Alan Boswell Group companies, click on the Regulations links in our site, accessible from within each section or contact Rod Gibson on 01603 218000 - email: rgibson@alanboswell.com.

Both of the General Insurance divisions of the Alan Boswell Group have been formally authorised by the Financial Services Authority (FSA) to continue in business when it takes on statutory supervision of the industry on 14 January 2005. From then, only those firms authorised by the FSA will be able to provide insurance services.

Rod Gibson, Compliance and Training Manager at AB Group said, "Getting approval from the FSA was clearly critical to the business and it is pleasing to have achieved this smoothly. Our membership of the General Insurance Standards Council which terminates on 13 January put us in good standing from the outset and the experience of our IFA division which has been regulated by the FSA for several years certainly helped.

We welcome the introduction of operating standards that will be mandatory for all firms involved in the industry. In general, we believe that the buying public will benefit in several ways:

• Intermediaries will be subject to strict financial rules which will improve security.
• Firms must comply with new 'conduct of business' rules in their front line sales departments. This means better communication so clients should know exactly who they are buying from, what it is they will be paying for and how much.
• Clients ought to be better informed about the product before they buy because firms must explain all key exclusions and limitations of the cover. And those buying in a private capacity will have the benefit of a two week cooling off period during which they can get their money refunded should they change their minds about the product.
• Consumer protection measures will be bolstered. Clients will be able to refer a complaint about their broker to the Financial Ombudsman Service (as they can now about their insurer) and if either firm goes bust, individuals who are owed money will be able to call on the Financial Services Compensation Scheme.
• Staff will be subject to more stringent Training and Competence requirements and this should help to improve the quality of service and professional standards across the industry over time.

It may take a little longer to buy over the telephone as sales staff are obliged to provide quite a bit of additional information and there will be more in the way of paperwork. A concern has to be that customers don't always read the information they already get and so adding to it may not be too well received.

Nonetheless, everyone at AB Group is totally supportive of the FSA's core aims and our people are dealing with the changes enthusiastically. Clients can feel reassured – and shouldn't be worried by the louder thud on the floor when their policy documents arrive!"