Barbon sales blunder sparks warning to brokers from compliance experts
Brokers are being warned today that the regulator has ‘had enough’ and they must be very careful when selling optional extras.
Compliance experts were speaking in the wake of Barbon putting aside £2.5m to compensate customers following a sales blunder of contents insurance.
Barbon’s mistakes, carried out by subisdary firm Homelet, have been closely scrutinised by the FSA and the property broker has taken significant steps to ammend the situation.
Brokers were today told that the new regulatory regime, the Financial Conduct Authority, is likely to be even tougher than the FSA.
Terence Clark, a director at RWA Compliance Services, said: “I think the regulator has lost patience with some brokers and has had enough.
“The issue of selling optional extras to consumers is a hot topic at the moment. Brokers will have to be careful and I wouldn’t be surprised if the FCA continues this tough approach. It could be indicative of a new regulatory regime - we will see the regulator interfering more, and being a lot more proactive.”
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