New FSA guidelines 'relevant to all sectors'
26 May 2010 at 16:37
New guidelines issued by the Financial Services Authority (FSA) which warn commercial brokers about the dangers of having holes in their systems are relevant to firms in all sectors, the regulator has warned.
It has issued a new document explaining how many commercial insurance broking firms are leaving themselves open to abuse and the risk of being involved in bribery and fraud.
The FSA points out that weak vetting systems, having poor controls in place and not having correct measures to deal with problems are three of the main risks facing such firms.
However, the regulator reiterated that companies in every sector of financial services can learn form the mistakes being made by firms which are abused by current and former employees for their own gain.
The new study began after the FSA investigated and fined Aon Ltd £5.25 million in January last year or failing to take reasonable care to establish and maintain effective systems and controls to counter the risks of bribery and corruption associated with making payments to overseas firms and individuals.