FCA warns insurance intermediaries over conflicts of interest for small businesses

The regulator said it has looked at seven of the largest intermediaries who serve small business clients - which it does not name - and concluded that in some firms, control frameworks and management information have not developed at the same pace as business models. There was an increased risk of conflicting interests where firms of insurance intermediaries carried out multiple roles in the distribution chain and acted as agent for both the customer and insurer in the same transaction, the FCA said. In a key part of the work, the regulator wanted to establish how the flow of revenue ...