FSA warns policyholders after police probe into motor broker

Police are investigating motor broker Aston Midshires Insurance after reports that customers may not have had their motor insurance arranged as expected.

The FSA says Aston Midshires sold policies to customers but allegedly failed to properly register details and premiums.

The regulator also warned customers that Aston Midshires policies may be partnered with a collapsed Swedish insurer.

The FSA said: “The insurance policies sold by Aston Midshires may claim the underwriter is European Wood AB, a company authorised by the Swedish financial regulator, Finansinspektionen.

“A firm authorised in another European Economic Area (EEA) state can offer certain products or services in other EEA countries, such as the UK, if it has a ‘passport’ to do so.

“However, customers should be aware that European Wood AB is in liquidation and policies underwritten by them may no longer provide insurance cover as expected.

“We are continuing to work with the City of London Police to investigate this matter, and will provide further information as it becomes available.”