Insurance Insider (subscription site) carries an article:
UK regulator the Financial Services Authority (FSA) has fined Lloyd’s broker Besso £20,000 for failure to apply for approval of a member of its management who had previous fraud convictions and is alleged to have gone on to commit fraud whilst at the firm.
Due diligence on employees is a bit of a must if you’re regulated by the FSA. How many prospective employees are going to be chuffed by the idea of a police notice of good conduct to be available for inspection in connection with a job application as a financial advisor? The notice is essentially your criminal record and usually takes 10-14 days to come through.
In France they’re required of any foreign national who wishes to start a business. At least they were when I lived there. What’s the situation in the US? But think how this changes your hiring process in these circumstances? What is the audit position in light of this finding?
My old firm gave up on FSA regulated work a few years after I retired. They said the admin burden was just too great for the risk and return it incurred. I think I can understand why.
Technorati Tags: compliance, employee relationships, FSA
