Release Date: 23rd April 2015
To access the original FCA document, click here.
Summary
Who was fined:
- Moorhouse Group Limited (Moorhouse)
Why the FCA fined them:
- The FCA fined Moorhouse £159,300 for failures in oversight and control of its telephone sales, particularly the sale of commercial vehicle add-on insurance products during 2012.
- Moorhouse did not disclose essential information about the limitations and exclusions of these add-on products, preventing customers from making informed decisions.
- Specific issues included not informing customers about conditions of the excess waiver and breakdown policies and inconsistencies in the quality assurance process for telephone sales.
- The FCA found that Moorhouse’s Board and senior management did not pay sufficient attention to compliance issues.
Key Takeaways for Other Firms:
- Transparency: Clearly disclose all limitations and exclusions of insurance products to customers before sale completion.
- Quality Assurance: Implement consistent and effective quality assurance processes to monitor sales and ensure accurate customer data recording.
- Compliance Focus: Ensure the Board and senior management prioritise compliance and take adequate steps to address issues.
- Customer Communication: Communicate outcomes of regulatory investigations to affected customers and provide avenues for addressing their concerns.
By adhering to these principles, firms can ensure fair treatment of customers and avoid regulatory penalties.
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