Release Date: 1st February 2016
To access the original FCA document, click here.
Summary
Andrea Christine Sadler has been fined £18,700 by the Financial Conduct Authority (FCA) for breaching regulatory standards while performing her role as CF1 (Director) at Coverall Worldwide Ltd with responsibility for Aderia UK Limited. The FCA also imposed a prohibition order preventing her from performing any significant influence functions in any regulated activities.
Reasons for the Fine:
- Failure in Due Diligence: Sadler failed to ensure appropriate contractual arrangements were in place for insurer-provided cover before signing binding authority agreements (BAAs).
- Inadequate Controls: She did not implement adequate systems and controls to prevent an unapproved individual, Shay Reches, from influencing Aderia’s operations.
- Misleading Actions: Sadler signed BAAs authorising coverholders to write insurance on behalf of Berliner without the necessary agreements being in place, leading to significant risks for customers.
Key Takeaways for Other Firms:
- Ensure Proper Contractual Agreements: Always verify and have proper agreements in place before committing to any binding authorities.
- Implement Robust Controls: Ensure systems and controls are in place to prevent unauthorised individuals from influencing operations.
- Accurate and Timely Communications: Communicate accurately and ensure all contractual and regulatory obligations are met before issuing public statements or offers.
Conclusion:
The FCA’s action against Andrea Sadler highlights the critical importance of due diligence, robust internal controls, and accurate communications in maintaining regulatory compliance and protecting consumer interests. Firms must ensure their senior management adheres to these principles to avoid similar penalties.
