(Bloomberg) – The Financial Conduct Authority will write to chiefexecutives of U.K. insurers after it found "widespread" evidencethat companies are failing to supervise external salespeople.
|More than half of the companies in a 15-firm sample were unableto demonstrate they could manage the risks arising from thesalespeople, who are also known as appointed representatives, theregulator said in an e-mailed statement. The FCA found examples ofpotential mis-selling by appointed representatives at a third ofthe companies included in the review.
|Mis-selling has hurt the British financial industry since thefinancial crisis. The U.K.'s five major banks set aside 31 billionpounds from 2011 through 2015 to cover costs related topayment-protection insurance, KPMG said in April.
|"We found widespread examples of poor practices across thesector," said Jonathan Davidson, director of supervision at theFCA. "In many cases firms were simply failing to understand andmanage the risks arising from their appointed representatives'activities."
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