Release Date: 30th August 2018
To access the original FCA document, click here.
Summary
The Financial Conduct Authority (FCA) fined John Lawrence Radford £468,600 and prohibited him from having any responsibility for client money and/or insurer money. This action results from Mr. Radford’s failure to adequately protect client money during his tenure as a director at One Call Insurance Services Limited. The breaches occurred between January 2005 and August 2013 and were related to Mr. Radford’s insufficient understanding of the Client Money Rules, leading to significant financial risks for One Call’s customers.
Key Takeaways for Other Firms:
- Understanding and Compliance: Ensure a thorough understanding of Client Money Rules and adhere strictly to them.
- Training and Competence: Appoint knowledgeable and competent individuals to oversee client money handling.
- Regular Audits and Reviews: Conduct regular and comprehensive reviews of client money handling procedures and respond promptly to any auditor warnings.
- Segregation of Funds: Maintain strict segregation of client money from the firm’s own funds and ensure accurate client money calculations.
- Risk Transfer: Verify that all Terms of Business Agreements (TOBAs) provide effective risk transfer and that funds received are treated accordingly.
In conclusion, the FCA’s action against John Lawrence Radford highlights the critical importance of understanding and complying with Client Money Rules. Firms must ensure robust systems and controls are in place to protect client money and avoid severe regulatory penalties.
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