NewswireToday - /newswire/ -
Boldon, Tyne and Wear, United Kingdom, 2007/11/21 - TOP financial compliance software specialists MS2M, in collaboration with Branko Ltd, has launched the UK’s first on-line system to keep thousands of General Insurance Brokers on the right side of the FSA - Mysatcom.net.
Thousands of independent insurance brokers face avoidable enforcement action if they do not hit strict FSA standards – and the pressure is now on firms to have their house in order as the FSA vows to carry out more on-site visits than ever before.
But now they can simply check their company’s compliance on-line thanks to the SATCom system.
Latest FSA findings show that two thirds of all firms visited and mystery shopped failed to meet its Insurance Conduct of Business (ICOB) rules. Now the FSA has said it will conduct telephone interviews on all firms in this sector (approximately 17,000 in total).
The FSA has also said it expects to carry out full on-site visits to approximately a quarter of all small firms in order to verify compliance assessments.
Julie Alderson, sales director, of MS2M, said: “Effectively one in four firms will get a knock on the door from the FSA to check their compliance. In the year April 2006 to March 2007, 151 firms had their permissions cancelled so enforcement action is very real.
“With the latest findings on non-compliance rates I think it is fair to say enforcement action rates will rise. However, many firms can easily avoid action by taking sensible steps to ensure all areas of their business are compliant.”
Many smaller firms find compliance a costly on-going process with many paying consultancy rates as high as £1,000 a day to ensure their business is on the right side of the rules.
To help increase access to expert information specialist MS2M, has launched the UK’s first online tool SATCom which can deliver a compliance health check and action plan in as little as an hour.
Brokers can sign up to the service for as little as £250 to obtain access to the system that leads brokers through an easy to navigate set of questions. The system produces a report which is stored on-line so that internal staff can update or add to the questionnaire.
Julie Alderson added: “The financial services sector is one of the most regulated of all industries and the one with the highest profile, although not always for the right reasons. Companies are fighting for market share and to retain customer loyalty through increasingly branded products. With such high stakes involved, it is essential that any business falling within the financial services regulatory orbit takes appropriate steps to ensure it is operating within the regulatory framework. Now they can do it very cost effectively and very easily.”
The online mysatcom portal has been developed by MS2M which is the leading provider of compliance software to the financial services industry. Since 1990 the company has been providing business solutions to the regulated Financial Services Industry and works with companies such as Royal Bank of Scotland, National Australia Bank, Liverpool Victoria, Coutts and HSBC to help them meet the ever increasing regulatory demands.
MS2M developed the online system in partnership with top UK compliance expert Branko Limited, a partner in the BIBA (British Insurance Brokers’ Association) compliance initiative.
Branko Bjelobaba, Managing Director of Branko, said: “New regulations are coming in all the time. The next big deadline is March 2008 when all firms will be expected to have appropriate measures in place to test if they are meeting the FSA’s TCF standards that demonstrate continuous measures to treat customers fairly.
“There is no excuse for non-compliance and the simple SATCom system will keep all firms in check.”
For further press information please contact Andy Barker at Results Network on 07855 352 303.