View more on these topics

FSA fines GenRe UK £1,225,000 for reinsurance failings

The FSA has fined General Reinsurance UK £1.225m for arranging two improper reinsurance transactions.
The regulator says it breached principle 2 by not conducting its business with due skill, care and diligence and principle 3 by not organising and controlling its affairs responsibly and effectively.
The first transaction was signed in 1999 and then renewed three times until 2003 and enabled a German insurer to gain tax benefits by transferring money between Germany and Ireland, where the insurer had a subsidiary.
The second transaction was signed in 2004 and was used to compensate for premium reduction on a reinsurance programme agreed with a client insurer by GenRe UK.
In both cases the FSA says it found GenRe UK did not have sufficient systems and controls in place to prevent the transactions being signed.
The underwriting, accounting and compliance functions in respect of the transactions were inadequate and the transactions were not fully assessed and monitored, says the regulator.
The FSA has accepted an undertaking from a former employee of GenRe UK not to apply for authorisation to carry on controlled functions for two years and to undertake an FSA approved training and mentoring programme.
By settling early GenRe qualified for a 30 per cent discount, without which the fine would have been £1.75m.
FSA director of enforcement Margaret Cole says: “The FSA expects firms involved in reinsurance business to observe proper standards of conduct, act with due skill, care and diligence and to ensure that they and their staff structure and manage transactions appropriately.

Both conventional and finite reinsurance transactions should only be used where there is a legitimate commercial purpose and sufficient risk transfer. The FSA will take robust action against reinsurance firms and their staff who act in contravention of these basic principles.”


Walsh does it his way

The much built-up highlight of the annual Lifesearch charity fund-raising and karaoke extravaganza was set to be the ABI head of life and health Richard Walsh’s impersonation of Sid Vicious.Walsh turned up looking his ever-so-clean-cut usual self. However, the transformation that took place had everyone aghast.Walsh had become a Sid Vicious-meets-Vivien (The Young Ones) lookalike […]

Bruce wilson

The managing director of Helm Godfrey believes in zen and the art of financial happiness, saying that sharing wisdom with clients is far more important than just selling products. Interview by Helen Pow

Watchdog praises mortgage brokers

Mortgage brokers have been praised by the Financial Ombudsman Service for a continuing low level of complaints.Relationship manager Peter Bristow says only 3 per cent of complaints received last year related to mortgage brokers.Of the 113,000 complaints, 70 per cent were about mortgage endowments but the loan market fared much better.Bristow pointed out how brokers […]

No lifetime guarantee

Imagine for a second that you need financial advice on your pension and post-retirement options. What would you be looking for from your prospective IFA?


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm