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FSA can make them pay

I find it utterly extraordinary to read Lesley Titcomb of the FSA saying there is virtually nothing the FSA can do about networks not paying commission to which their ARs are legally entitled.

Is this not fraud or something very close to it? It is certainly misappropriation of monies. If a limited company misappropriates monies it should set aside for PAYE, then HMRC comes down like a ton of hot bricks.

Here is a tip for you, Ms. Titcomb. If the FSA receives a complaint from members of a network that a network is withholding monies, send in one of your Swat teams and instruct the network that unless they pay what they owe to the businesses that support their existence, the FSA will shut them down and force them to pay what they owe. Is that clear enough for you?

Julian Stevens

Harvest IFM, Bristol

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Comments

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  1. Capital Adequacy
    Perhaps someone can ask Miss T why, IF ND owed nearly 2 Million to their ARs when they went out of business, how did they manage to stay above the minimum capital adquacy requirement of £10k. I know this is only a small sum, but if they owed ARs 2million, they would have had to have had assets in excess of 2 million to maintain a zero cap adequacy figure, let alone have any working capital?
    I haven’t seen Miss T statement this time, but it ooks about a well thought out as her comments on dual pricing when Stuart Duncan and I took her to task on dual pricing.
    Perhaps we don’t express ourselves correctly sometimes as the issue is that someone who does not pay their bills (ARs) can easily be deemed NOT “fit and proper”. The insurers tell the FSA (and tell us their are obliged to) if a broker does not repay clawed back commission which can result in being deemed “not fit and proper”. What is the difference with a network?

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