SPRING
M AY 2 0 2 0
compliance newsletter
SPRING COMPLIANCE NEWSLETTER // MAY 2020
hello. welcome to the... ...Spring edition of the Compliance Newsletter. As your Compliance team, it’s our job to help and support you with all your regulatory needs, and we understand that right now you may have a high volume of requirements from a compliance perspective. We are aware that the COVID-19 pandemic has resulted in an increase in the number of questions and complaints from clients. To assist you, in this edition of the Compliance Newsletter, you will find details of the new Ethos Broking process for breaches and complaints. In addition to the new process, we focus on FCA rules and findings, advice on how the General Insurance Distribution chain affects you and what you need to do when it comes to Non-Financial Misconduct. We also look at the five things you should be considering if you’re looking to acquire, as well as the FCA’s new signposting rules for customers with pre-existing conditions plus, much more.
2
COMPLIANCE NEWSLETTER | WWW.ETHOSBROKING.CO.UK
It has been a few months since SM&CR came into force, and we hope that our informative articles and webinars helped you to ensure that you’re adhering to the regulation and protecting your business. As always, your dedicated risk and compliance contact is there to help should you have a question at any time about SM&CR, the new breaches and complaints process or any other regulatory requirements, both during the Coronavirus outbreak and as we come out of it. We hope you enjoy the read. Yours,
Nigel Archer NIGEL ARCHER Interim Compliance & Risk Officer
meet the team. We’re delighted to introduce you to the newest member of our team – Claire Walsh, Risk and Compliance Business Partner. Claire joined us in March and will be providing compliance support for our Ethos Broking Hubs in the North of England and Scotland. Claire says, “My role is to assist those of you who are based in these regions to understand the requirements of the FCA. I will also be providing support to ensure that you operate in a compliant manner and maintain a risk and compliance culture across your brokerage. “I have more than 25 years’ experience of working in the insurance industry, the last 15 of which have been in compliance related roles. Prior to joining the Ethos Broking team, I was a Compliance Business Partner at Marsh Commercial for three years and before that I worked for Gallagher’s for 10 years. “I will also be involved in the implementation of the Ethos Partner Risk and Governance Framework, which will assist in helping you to build a strong governance structure that includes risk identification and mitigation. I’m looking forward to working with those of you who are in the North of England and Scotland, along with any future acquisitions, as we all work together to build a fully compliant and robust Ethos Broking business.” If you would like to get in touch with Claire about any compliance questions you may have, please call her on 07834 755328 or email claire.walsh@ethosbroking.co.uk.
claire walsh
Risk and Compliance Business Partner
COMPLIANCE NEWSLETTER | WWW.ETHOSBROKING.CO.UK
3
don’t for SPRING COMPLIANCE NEWSLETTER // MAY 2020
COVID-19
NEW PROCESS FOR BREACHES AND COMPLAINTS
With the COVID-19 pandemic resulting in an increase in the number of questions and complaints from clients, it is important that we respond to any queries or complaints consistently across Ethos Broking. We know that you have been adhering to the new processes that we implemented recently, but we wanted to highlight them to you again to ensure you have everything you need.
Click here for guidance and documentation on the new processes
THE FIVE THINGS TO CONSIDER WHEN ACQUIRING Understandably, acquisitions mean a significant change for any company – both for the business making the purchase and the business being bought. If you are making an acquisition, once you find a business that aligns with your goals and culture, we’d urge you to do your research and make sure you know exactly what you’re getting. We’ve put together five things you should consider when integrating an acquisition into your firm.
SMCR - WHAT SHOULD YOUR BROKERAGE HAVE IN PLACE? Click here to read our top tips
DO YOU KNOW HOW THE BREXIT IMPLEMENTATION PERIOD AFFECTS YOU? In October 2019, the UK and the EU agreed a Withdrawal Agreement covering the terms of the UK’s departure from the EU. This is now in the process of being ratified by the UK and EU Parliaments in order for it to take effect, but do you know how it will impact you and your clients?
Click here to find out more
4
COMPLIANCE NEWSLETTER | WWW.ETHOSBROKING.CO.UK
get... WHAT IS NON-FINANCIAL MISCONDUCT?
Winston Churchill said: “The price of greatness is responsibility”. And, if you are the Director or Principal at your brokerage, tackling Non-Financial Misconduct is your duty. Following the FCA’s ‘Dear CEO’ letter, there are now publicised incidents of this in the general insurance sector.
Click here to read more about what your brokerage needs to do
DOES YOUR BUSINESS TICK THE GOOD REPUTE BOX? Following IDD, how does your firm ensure that everyone in your management structure and anyone directly involved in insurance distribution activities are of good repute?
Click here to read more on how to ensure good repute is met
COMPLIANCE NEWSLETTER | WWW.ETHOSBROKING.CO.UK
5
SPRING COMPLIANCE NEWSLETTER // MAY 2020
HAVE YOU ?
FCA ADMITS DATA BREACH The FCA has released a statement confirming that it made a mistake after publishing certain underlying confidential information on its website, which may have been accessible to the public.
Click here to read more
HOW THE GENERAL INSURANCE DISTRIBUTION CHAIN AFFECTS YOU During 2017 and 2018, the FCA conducted diagnostic work on General Insurance Distribution Chains. The result of which found several processes that were detrimental to customers due to failures in product design, oversight and distribution. The finalised guidance is now available on the FCA website.
Click here to read more
IS YOUR TRADING NAME SOUND? The use of a trading name has become common place these days. However, have you considered what is and isn’t acceptable to the regulators?
Click here to find out whether your name fulfils the requirements
compliance newsflash YOUR CHECKLIST TO THE PRE-EXISTING MEDICAL CONDITIONS REGULATORY CHANGES The FCA is introducing new signposting rules and guidance to help consumers with preexisting medical conditions (PEMCs) better navigate the travel insurance market, with the aim of making policies more affordable for them. To help you get ahead of the changes, we have created a handy checklist that you can use to ensure your brokerage meets all the regulatory rules you need to comply with.
Click here to read more about how it could impact your firm Click here to download the checklist
COMPLIANCE NEWSLETTER | WWW.ETHOSBROKING.CO.UK
7
need help? Call or email your dedicated Risk and Compliance contact or email the team at compliance@bravo-group.co.uk 20-557 M V7