Daily briefing: Tuesday - rogue brokers

The murky dealings of two brokers were disclosed in all their glory by the FSA today. The regulator came down hard on brokers Andrew Porter and Alexander Brincat, banning the pair from working in financial services.

It’s yet another example of the regulator using its enforcement powers to crack down on these ‘rogue’ operators in the broking sector. Their actions were slammed by the regulator. Porter's actions were all too familiar in cases like this. He left clients underinsured, pocketing cash and lying to insurers.

Brincat, whose firm Wise Owl also had its permissions withdrawn, was slammed for abandoning his business. He left the UK for an indefinite period of time, not leaving anyone suitable to run the debt-ridden business.

These latest bans come as a warning to small brokers that they can’t neglect their systems and controls. The fact that they can be so easily neglected begs the question of how many more of these cases could be around the corner?

ABI stands defiant over Jackson

Will the ABI ever bow down to legal expenses insurers? Following the news revealed today that Financial & Legal Insurance has becomes the latest legal expenses insurer to quit ABI membership over the trade body’s stance on the Jackson Review, it seems unlikely. The insurers that have walked out, including DAS and Elite, feel that the ABI is not backing its corner on Jackson’s proposals, which include ending recoverability of the ATE premium, opposed in the legal expenses market.

The ABI says it won’t change its stance, so what next for legal expenses insurers? They already have their own body representing them - the Legal Expenses Insurance Group - and it could be a perfect opportunity for this organisation to really step up to the plate.

Will Aviva hook up with Lloyd's?

When Aviva returned to the corporate risks arena, it set big targets, including writing around £300m of business by the end of 2010. Almost two years into its comeback, new managing director David Hall is conducting a review of the business to decide where it heads next.

The favoured option appears to be launching a Lloyd’s operation, which would see it trading in the famous tower on Lime Street. The combination of Lloyd’s strength in the international markets and Aviva’s global brand could be a winning combination for the ambitious business.