Release Date: 28th June 2021
To access the original FCA document, click here.
Summary
Crosfill & Archer Claims Limited was fined £110,000 by the Financial Conduct Authority (FCA) for breaches related to their due diligence on customer data and telemarketing practices. The firm, a claims management company (CMC), failed to properly verify the provenance of data obtained from third-party providers and made unsolicited calls to individuals registered on the Telephone Preference Service (TPS) without the required consent. Additionally, there were issues with staff training on the use of their telemarketing dialler.
Key Takeaways:
- Conduct Thorough Due Diligence: Ensure the provenance and consent for any data purchased from third-party providers are well-documented and compliant with relevant regulations.
- Respect Marketing Preferences: Avoid making unsolicited calls to numbers on the TPS without explicit consent, and regularly screen data against the TPS.
- Train Staff Adequately: Provide comprehensive training to staff on all systems and processes they will use, particularly those involved in compliance-related activities.
- Follow Regulatory Advice: Act on any advice or warnings from regulators promptly and thoroughly to rectify identified issues.
- Maintain Accurate Records: Keep detailed records of all due diligence checks, consent verification, and compliance measures to demonstrate adherence to regulatory standards.
Conclusion:
The FCA’s enforcement action against Crosfill & Archer Claims Limited serves as a reminder for all firms to rigorously adhere to compliance standards, particularly in data handling and telemarketing practices, to avoid significant penalties and regulatory scrutiny.
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