Insurance intermediaries have come under fire from the FSA for having inadequate financial resources.
It has written to the CEOs of insurance advice companies stating its supervisory work "regularly shows" firms pay insufficient attention to threats to their financial viability. Current FSA rules prescribe both a general solvency requirement and a capital resources requirement on mortgage and insurance intermediaries. It says it is the first requirement, applicable to all regulated firms and set out under Threshold Condition 4 (TC4) in the FSA Handbook, that is continuing to receive insufficient attention from firms. The regulator says it is particularly concerned about its finding...
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