Client money compliance improves, but FSA warns brokers to be on guard

General insurance brokers still failing to meet client money safeguards will be afforded no leniency, the Financial Services Authority (FSA) warned following the results of its latest review of the sector at the end of last year. The regulator said given the amount of attention that client money has received since it took over regulation of the sector in 2005 there can be “no excuse” for risking client money. “Firms are on notice that the standard expected of them has been raised. Any subsequent failures identified will be viewed seriously”, the FSA said.