Teaming up with... AVIVA

Welcome to the UKGI weekly regulation update service for Aviva ABC brokers

We hope you find the Updates useful. If you are
interested in subscribing to our affordable
ABC compliance support package, please
email us at ABC@ukgigroup.com or
call UKGI on our dedicated ABC
contact line 01925 767893.

FCA places restrictions on Arthur Temlett t/a Abacus Insurance Consultants

Link(s):Financial Conduct Authority places restrictions on Arthur Temlett | FCA
Arthur Temlett

Context

The FCA has taken preventative action by stopping Arthur Temlett, trading as Abacus Insurance Consultants, from carrying out any regulated activities (see the First Supervisory Notice on the firm’s Financial Services Register entry), including acting as an insurance broker.   The FCA is concerned that Abacus Insurance, which was based in Dumfries and Galloway, may have been selling home/motor insurance and not passing premium payments on to the insurance provider. Customers may be concerned about whether cover they have paid for is in place, and the FCA is working with the relevant authorities to assess the situation.  Any insurance brokers which have done business with Arthur Temlett t/a Abacus should review that business to ensure insurance policies are in place.

Key points to note and next actions

  • Customers who purchased car and home insurance from the firm should contact their insurance providers directly to check that it is valid and in place. If they are uninsured, they should arrange alternative cover immediately. 
  • Anyone who believes they have paid for a policy that does not exist should report this to Police Scotland in the first instance by dialling 101 and using the crime reference number: CR/0470100/24 before making a report to the FCA. 
  • The FCA is in the early stages of assessing the number of customers who took out investments with Abacus Insurance, so it has no further information at this stage. The FCA would encourage customers to make a report to Police Scotland in the first instance using the crime reference number: CR/0470100/24 before making a report to the FCA. 
  • The FCA will update its web page in this regard with further details once it knows more.  At this stage, consumers do not need to submit complaints to the Financial Ombudsman Service. The FCA is continuing its enquiries and will provide updates, including whether consumers should contact the Financial Services Compensation Scheme.
  • The firm had permission to hold client money, so customers rather than insurers may bear any loss. They should be covered by the FSCS, but that means that ‘good’ firms pay for this rather than the “polluter”, which the FCA is trying to address more generally.
  • This indicates that, where they come to the FCA’s attention, it will not hesitate to take action against the smallest firms if it believes that customer harm is occurring and poor outcomes are evident.