<
p>The Financial Conduct Authority (FCA) has fined a risk broker over its sales practices with SMEs.
Moorhouse Group Limited, of Barclay House, 2-3 Sir Alfred Owen Way, Caerphilly, Mid Glamorgan, was fined £159,300 after failing to disclose appropriate information about the limitations and exclusions of commercial vehicle add-on products to clients prior to sale.
The group, which according to its Linked-in page has over 25 years’ experience in the insurance industry and offers quotes from a range of insurers for SMEs, including landlords, estate agents, architects, accountants and builders, focused on selling liability-related insurance products to small and medium enterprises, including very small businesses known as micro-SMEs.
In 2012, the FCA found that board members and senior management failed to give sufficient attention to compliance concerns and did not take adequate steps to improve them.
Acting Director of Enforcement and Market Oversight at the regulator, Georgina Philippou, said Moorhouse had a responsibility to treat its customers fairly, whether they be individuals or small businesses.
“Moorhouse failed to put in place systems and controls to ensure customers were given the right information,” said Georgina.
“This put customers at risk of buying the wrong products and not having the right insurance cover.”
The firm avoided a fine of £227,670 as it qualified for a 30 per cent discount after agreeing to settle at an early stage of the FCA’s investigation.
In April 2013, the firm responded to the watchdog’s concerns by suspending the sale of add-on insurance products for five months and applying drastic improvements to its systems and controls.
Moorhouse also took considerable steps to address the issue in October 2013, and the FCA was satisfied that the firm had made the enhancements necessary to ensure its telephone sales environment was compliant with the Authority’s Principles and Rules.
Moorhouse is required to inform customers who purchased commercial vehicle add-on products back 2012 of the results of the FCA’s investigation.
The Financial Conduct Authority (FCA) has fined a risk broker over its sales practices with SMEs… .
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