FSA aiming to catch the villains with informants
The Financial Services Authority (FSA) has asked insurance firms and brokers to give them a call when they suspect criminal behaviour is occurring so it can investigate the matter further.
The most likely circumstances where this process could be started is when an insurance company ends an agreement with a broker where it suspects doubtful practice or misconduct, or where a broker has genuine doubts about the integrity of another broker.
Stephen Bland, director of small firms at the FSA, said: “We are looking to all insurance firms to participate in this scheme and help us beat criminal financial activity in the industry.
“We want to know when a firm has a suspicion or evidence of malpractice so that we can act on it where appropriate. We hope that by sharing intelligence in this way, we can work together to reduce financial crime.”
He concluded: “This action mirrors the mortgage fraud reporting system which has already produced good results.”
Nick Starling, director of general insurance and health at the Association of British Insurers, said: “Insurers do all they can to combat financial crime. We welcome the FSA’s initiative- it will provide insurers with a single point of contact to raise concerns.
“I would urge insurers to help the FSA in this initiative.”