Dear CEO letter to General Insurance Intermediaries

7 October 2020 Alistair MacDougallCompliance

The FCA has issued a ‘Dear CEO’ letter to General Insurance Intermediaries setting out its expectations for maintaining adequate arrangements that safeguard client money especially during the coronavirus (Covid-19) pandemic.

It reminds firms of their obligations to continue to oversee the CASS arrangements. It requires firms to discuss the contents of the letter with the board and agree what further action is necessary to help ensure adequate arrangements are in place, highlighting the following areas:

application of client money rules to firm’s business model;
governance and oversight;
oversight of third parties, including due diligence;
client money calculations and reconciliations;
acknowledgement letters for all client money accounts.

You can find further information regarding client assets and coronavirus here.

Don’t forget to check Our View about this article and the Actions Required By You

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Our View

While there is nothing new in this letter, it does highlight key concerns that can be affected by the Covid-19 pandemic and areas of focus for firms within new, or not new, working arrangements.