The Financial Conduct Authority (FCA) has raised concerns regarding Abacus Insurance, based in Dumfries and Galloway, over allegations it may have been selling home and motor insurance policies without transferring premium payments to the respective insurance providers.
This has led to potential uncertainty for customers about whether their paid-for policies are valid, the regulator said.
The FCA has also indicated it is in the early stages of determining the number of customers affected by investments taken out through Abacus Insurance. It is collaborating with relevant authorities to assess the situation.
Meanwhile, customers who purchased car or home insurance through Arthur Temlett are advised to contact their insurance providers directly to confirm that their policies are valid and active, the regulator said.
If a policy is found to be invalid or non-existent, customers should arrange alternative insurance cover immediately, it added. New insurance policies can be obtained directly from authorised insurers or through brokers.
The FCA also advised customers who believe they have paid for a policy that does not exist to report the matter to Police Scotland. They may then submit a report to the regulator for further investigation.
Formed in 2013, the FCA is an independent body that regulates financial firms providing services to consumers and maintains the integrity of UK’s financial markets. The regulator works alongside Prudential Regulation Authority and the Financial Policy Committee to set regulatory requirements for the financial sector.
Last November, the FCA banned former director of Inspire Insurance Services, Leigh Mackey, from working in financial services for financial misconduct and misleading regulatory authorities. Mackey was accused of misappropriating funds owed to insurers, as well as failure to conduct mandatory client asset audits over a period of four years.
In August, it also banned and penalised Perry Prowse (Insurance Consultants) Ltd.’s sole director, Martin Sarl, for grave misconduct and dishonesty after allegedly using money paid by some of his clients to pay for personal and company debts.
