FSA targets financial crime in insurance
Published On 7 March 2007
The Financial Services Authority (FSA) has stepped up its efforts to tackle financial crime in the insurance industry.A new reporting system has been set up by the watchdog to better monitor and enforce impropriety in the sector.
The new structure will allow insurance firms to easily inform the FSA when they suspect that criminal activity is taking place.
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 their industry.
"We want to know when a firm has suspicion or evidence of malpractice so that we can act on it where appropriate."
Some examples of activities the FSA are hoping to crack down on are misappropriation of client money, failure to pass on premiums, refunds or claims and falsifying customer details to get insurance business that would otherwise have not been available.
The FSA has recently ruled that mortgage lenders must change their practices on exit fees, as many borrowers are paying unfair amounts.
