SOME insurance brokers and investment firms are failing to properly safeguard clients funds and could face regulatory penalties, the Financial Services Authority (FSA) said yesterday.
The City watchdog has written to all major insurance brokers and investment firms to express concern over the handling of clients’ money and assets, and has already referred two firms to enforcement division.
“The client asset rules are a key protection for consumers. It is simply unacceptable that firms are not ensuring that consumers get the appropriate protection. We have pointed out our concerns to firms and will be following up these concerns with further visits this year,” said Sally Dewar, FSA managing director of risk.