View more on these topics

Row looms on tracking fraudsters

FSA backs condemnation of insurers using detectives

Insurers are set for a head-to-head battle with the FSA over the use of surveillance to track down suspected fraudsters.

The regulator is backing moves by the Information Commissioner condemning the use of private detectives and other practices to track down people suspected of submitting fraudulent claims.

The IC wants jail sentences of up to two years for offen-ders but the ABI has reiterated that it reserves the right to use detectives and surveillance such as when someone claiming an injury under an income protection policy is, for example, caught playing sport.

The FSA will not be implementing specific rules to comply with another body’s codes but will pile the pressure on insurers not to use “unlawful” means.

The Council of Mortgage Lenders has told its members of the FSA’s stance but it is understood that the IC is not as concerned about lenders chasing debtors as it is insurers’ practices.

ABI spokesman Malcolm Tarling says: “It is in the interests of honest customers that we use such means. It is a sensitive issue and insurers will always comply with the law but we would always argue for something that cuts out cheats. We will respond to the FSA and consider our views.”

FSA head of retail markets Clive Briault says: “We entirely support the cond-emnation of the unlawful obtaining of confidential personal information. While we do not think that it is open to us to introduce a rule that requires compliance with the regime established by another regulator, we will make our support clear to regulated firms.

“We will send a copy of the letter sent to the IC to trade associations representing the firms we regulate for circulation to their members.”

Recommended

IMA calls for new ideas on annuities

The Investment Management Association says responsibility for annuities should be taken away from Revenue and Customs and moved to another Government department to produce more coherent pension policies. Speaking at the FSA’s annual asset management conf-erence in London last week, chief executive Richard Saunders said there needed to be new thinking on annuities as current […]

Long-term outlook pays off for Baillie Gifford

Baillie Gifford American co-fund manager Peter Cawston says the industry is obsessed with short-term performance and consistently ignores sustained long-term growth. Cawston says the average US mutual fund has an annual stock turnover of 100 per cent and likens it to a form of betting. He favours a longer-term approach in his 47-stock high-conviction portfolio […]

Are all the extras worth the cost?

The wrap round table discussions in last week’s issue of Money Marketing have been thought-provoking. As attractive and flashy as wrap services might appear to be, how do they match up with client demands? Might it be the case that for 95 per cent of clients, a wrap will far exceed their demands? How many […]

Carry on churning, says ABI chief Haddrill

Association of British Insurers director general Stephen Haddrill says churning is essential to drive competition and financial services is the only industry where a degree of churn is not seen as positive. Speaking at a Labour party fringe event in Manchester on Tuesday, Haddrill hit back at FSA chairman Sir Callum McCarthy’s claims that the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com