Regulator warns insurance brokers
INSURANCE brokers have been warned by the Financial Regulator to put proper processes in place for handling money taken in from consumers to pay for insurance policies.
All brokers have been written to, reminding them that there are strict rules on how clients' money should be handled.
Officials from the regulator's office probed the files of a number of brokers to make sure customers' money was being handled in line with the rules.
The majority of firms were acting in compliance with the regulator's rules, but "a number of issues were identified during the course of the inspection", it said in a statement.
"Compliance issues identified during the inspection are subject to separate engagement by the Financial Regulator with the individual firms concerned," the regulator said.
Brokers were told to make sure they have sufficient funds in client accounts to make sure these accounts do not end up being overdrawn.
They were also told to make sure proper receipts are issued when customers' money is received by a brokerage.
Brokers are not allowed to mix up funds owned by the brokerage with clients' funds, the regulator said.
The watchdog said it would continue to monitor brokers to make sure they were complying with the rules.