This FSA report describes how commercial insurance broker firms (‘broker firms’) in the UK are addressing the risks of becoming involved in corrupt practices such as bribery. In particular, it sets out the findings of our recent review of standards in managing the risk of illicit payments or inducements to, or on behalf of, third parties in order to obtain or retain business. The FSA published its interim findings in September 2009.
Although this work focuses on commercial insurance brokers, many of the issues covered and our examples of good and poor practice are relevant to firms in other sectors who use third parties to win business.
Firms’ legal and regulatory responsibilities concerning anti-bribery and corruption are set out in Section 2.4.
This report does not constitute nor should it be treated as our formal FS guidance. However, the FSA expect firms to consider its findings, to translate them into more effective assessment of this risk, and to implement and maintain more effective appropriate controls where necessary.
As in any other area of their business, firms should take an appropriate, risk-based approach to anti-bribery and corruption, taking into account relevant factors including their customer base, business and risk profile. Failure to do so may result in the FSA taking action.
CASE STUDY – As a result of this review and the FSA’s concurrent casework, the FSA have commissioned a skilled persons report to assess past payments to third parties made by a firm and issued a formal private warning to another after we became aware of a number of third party payments which were made without an adequate business case being established and documented. The FSA is considering whether further regulatory action is required in relation to other individuals and firms and it is likely that there will be referrals to Enforcement.
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