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COMPLIANCE NEWS
Top tips to consider before engaging in an AR agreement
SMCR is coming – are you ready?
INSURER NEWS
The Bishopsgate team try Member speed dating...
Are you clients' smart home devices safe?
IS THERE EVER A RIGHT TIME TO SELL?
Richard Tuplin, MD of Ethos Broking talks about the driving factors behind selling your business
YOUR Register your place at a Regional Meeting and help shape the Network's future
REGIONAL MEETINGS REGISTRATION NOW OPEN! This year, our Regional Meetings venues celebrate the rich history of the Network with a heritage theme. From the Grade One listed Pittville Pump Room to the quirky design of The Biscuit Factory, each of these venues has a unique story to tell… just like you. To register your place today, contact your BDM or Alison Fordham on:
GLASGOW
3RD OCTOBER GRAND CENTRAL HOTEL
E: alison.fordham@bravo-group.co.uk T: 01423 554 135
NEWCASTLE
7TH OCTOBER THE BISCUIT FACTORY
HAVE YOUR SAY Register your place for one of our Regional Meetings and take the opportunity to offer your feedback. This is your Network: your needs drive everything we do.
MANCHESTER 8TH OCTOBER TATTON PARK
CHELTENHAM
9TH OCTOBER PITTVILLE PUMP ROOM
LONDON
11TH OCTOBER DRAPERS HALL
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NEWS CON TENTS
NETWORKING
WELCOME...
With last week’s financial results in mind, I wanted to hammer home an important message: this is your Network. It’s your feedback that allows us to shape our focus and, crucially, informs our activity for your benefit. Our announcement to the trade press last week that our Premier Members and Insurer Partners had both seen revenue growth of 11% really drives home just how powerful we are as a collective. So my plea to you is, give us your feedback so that we can continue to develop the services that will make a lasting impact on your business. There’s an ideal chance for you to do this at one of our Regional Meetings which return in just a few months time. These events continually receive fantastic feedback from attendees who see them as an excellent networking opportunity, so I would urge you to save the date in your diary that works best for you and register your place. Get face to face with the Broker Network Executive Team and ask that question that’s been playing on your mind for months! Details on how to register are on the opposite page.
This month we saw the graduation of our fifth Organic Growth Programme cohort – considering we were only meant to run two groups and we’re now working with a seventh and eighth, it’s fair to say this grew legs! In just 20 months the delegates, whose revenue had been flat for years, have achieved an average of 18% revenue growth. It’s been incredible to watch and I’m sure you’ll join me in congratulating these businesses for what they’ve achieved. You may have spotted our charity fundraiser last month for Mind Harrogate, where a number of our Exec Team and members of staff jumped onto two spin bikes in our reception area in Knaresborough in a bid to raise some cash. We work hard, but we play hard too, especially for such an amazing cause. Huge thanks to each of our Members
who so generously donated. This is just a small part of what we’re doing for our charities this year, but mental health is a topic that is firmly on our agenda for 2020 and beyond at Broker Network. Freddie Flintoff spoke on the topic at BIBA and as he said, there is a responsibility for senior leaders within our businesses to create the right culture that allows people to be truly open about their mental health. Talk is cheap, and the best of intentions are just that – it’s what you physically do that counts. What strategies do you have in place to promote positive mental health in your business?
Yours, Richard Pitt Chief Network Officer
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COMPLIANCE NEWS
Keep up to date with crucial regulatory news.
AFFILIATE OF THE MONTH There's no risk with risk management! Xact reveals all.
HEARD IT ON THE GRAPEVINE
News from across your Network: apprenticeships, Member milestones and more.
INSURER NEWS
The hottest updates from our Partner Insurer panel.
IS THERE EVER A RIGHT TIME TO SELL?
Find out more in this column by Richard Tuplin, MD of Ethos Broking.
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COMPLIANCE NEWSLETTER // JUNE 2019
Member Compliance Helpdesk: 0344 346 1342 compliance@brokernetwork.co.uk
Meet the latest member of the Risk and Compliance team, Sarah Valentine, who tells you a little bit more about her role here at Broker Network and how she is helping our Members.
GENERAL INSURANCE DISTRIBUTION CHAIN
All general insurance insurers and intermediaries need to consider the extent to which issues are identified and the harm that this can cause such as customers buying unsuitable products, paying excessive prices or not receiving services expected. The FCA has recently conducted a thematic review (TR19/2) which focused on the value in the general insurance distribution chain and delegated authority arrangements and sent all firms a ‘Dear CEO’ letter to inform them of their findings.
>> Please click here to read the full article and the findings of the review
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CREDIT RISK REMINDER
Please click here to read our article on what to look out for when assessing credit risk when using MGA / wholesale broker markets. It considers good practice guidance and support that can be offered by Broker Network to monitor these markets.
COMPLIANCE NEWSLETTER // JUNE 2019
SENIOR MANAGEMENT & CERTIFICATION REGIME – STATEMENT OF RESPONSIBILITY SME ACCESS TO THE FINANCIAL OMBUDSMAN SERVICE Changes in respect of eligibility for SME Access to the Financial Ombudsman Service (FOS) have now gone ahead following previous FCA proposals which took effect from 1st April 2019.
>> Please click here for more information on the key changes and the requirement to order new Consumer leaflets as a result
On 9th December 2019 the Senior Managers and Certification Regime (SMCR) will come into effect for insurance intermediaries. The FCA recently published final guidance on Statements of Responsibility under the SMCR and in this article we take a look at the requirements and what firms should be considering when drafting a Statement of Responsibility.
>> Please click here to read the full article
MEET THE TEAM
PAUL TAINTON TALKS FILE AUDITING Our very own Regulatory File Auditor, Paul Tainton, provides an insight in to his experience of providing the File Audit Service that was introduced in 2018 and offers some useful observations on areas for improvement and tips on how to ensure files remain compliant with regulation.
>> Please click here to read Paul's findings
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COMPLIANCE COMPLIANCENEWSLETTER NEWSLETTER////JUNE JUNE2019 2019
Member Compliance Helpdesk: 0344 346 1342 compliance@brokernetwork.co.uk
CAPITAL RESOURCE REQUIREMENTS The FCA requires firms to hold a minimum amount of capital so that they have sufficient resources to absorb routine losses and redress claims against them. It is always a firm’s duty to maintain adequate resource and not just when they come to complete their RMAR. Failure to maintain adequate capital resource will result in your firm being in breach of regulatory requirements. This reportable breach is notifiable to the FCA and can have a serious impact on your firm.
>> Please click here to read the full article
WHAT IS A TRADING NAME?
COMPLAINT HANDLING Following on from the supervisory work conducted by the FCA around how GI firm handle complaints, it has been revealed that some firms are not dealing with complaints correctly. It is important that complaints are dealt with correctly and in a timely manner. Firms also need to ensure that they take steps to ensure that they fully investigate complaints and ensure that lessons are learnt from those complaints.
>> For more information on complaint time scales and what firms need to do, please click here
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NETWORKING NEWS
A trading name or a business name (as it is becoming more commonly known) is a name used by companies to perform their business under; it is different from their registered legal name. Members will need to add any trading names that belong to the firm to the Financial Service Register. Registering a trading name has no legal effect as far as the FCA is concerned. Some trading names could be what the FCA defines as ‘sensitive names’. Trading using a name which contains a sensitive word without getting the FCA’s consent is an offence. The business committing the offence (and individuals running the business) may be subject to a penalty.
>> Please click here to read the full article
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COMPLIANCE NEWSLETTER // JUNE 2019
TOP TIPS TO CONSIDER BEFORE
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ENGAGING IN AN APPOINTED REPRESENTATIVE AGREEMENT
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As part of the Broker Network (BN) Membership Agreement (section 4.1 (ii)), BN Members are contractually obliged not to enter into an AR agreement either as Principal or AR of a Principal without first obtaining the express written permission of BN. This applies even if the proposed AR/ Principal arrangement is with another BN Member.
Broker Network Support Update
CPD
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An Appointed Representative (AR) is a firm or an individual which conducts regulated business on behalf of a firm directly authorised by the Financial Conduct Authority (FCA) and is noted on the FCA Register as such. The directly authorised firm is known as the ‘Principal’ and is responsible for ensuring the Appointed Representative meets its obligations with FCA rules.
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An AR arrangement imposes onerous obligations on the Principal and there is an expectation from the FCA that the Principal will conduct their affairs with the AR in a similar manner.
Before a Broker recruits an AR, sufficient checks should be completed on the firm or individual to ensure they are financially stable and that they have achieved and are maintaining an adequate level of competence.
Members must be able to fully demonstrate in written representation to BN why any AR arrangement should be agreed to.
>> Click here to see the full list of our AR Top Tips
NEW – Conduct Policies are now available for download from the HUB. These policies are designed to replace the Company Compliance Manual and be used alongside the Guides to Best Practice.
ACTIVITY
1. What does SMCR stand for? 2. What is an Appointed Representative (AR)?
3. It is an offence to use what type of
trading names without FCA consent?
4. Within what period should firms aim to resolve formal complaints?
>> Click here to download this activity as a PDF to keep for your CPD records
5. The FCA’s recent thematic review
(TR19/2) focused on which two areas of distribution?
For more information on any of the articles in this edition of Compliance News, or for any other compliance queries, please contact your dedicated Risk & Compliance Consultant, or alternatively the Compliance Helpdesk for further assistance on: T: 0344 346 1342 E: compliance@ brokernetwork.co.uk
ANSWERS - 1. Senior Management & Certification Regime. 2. An Appointed Representative (AR) is a firm or an individual which conducts regulated business on behalf of a firm directly authorised by the Financial Conduct Authority (FCA). 3. Sensitive names. 4. 8 weeks. 5. Value in the general insurance distribution chain and delegated authority arrangements
NETWORKING NEWS | VISIT HUB.BROKERNETWORK.CO.UK
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AFFILIATE OF THE MONTH There’s no risk with Risk Management! Offering your clients a Risk Management Service may seem like risky business, however it couldn’t be simpler. In the latest Affiliate of the Month feature, Maurice Hammond, Managing Director at Xact, outlines how you can earn substantial and recurring revenue by providing your clients with Risk Management Support Services. Read more on:
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Competing with national brokers
Promoting your brand with new and existing clients
Supporting your transactional insurance broking offering
Opening up a dialogue with your clients on Risk Management and Health & Safety
Click here to read the full article 8
NETWORKING NEWS
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HEARD IT ON
THE GRAPE V IN E BROKER NET WORK C O NT I N U E S T O G R O W You may have seen in the press and on social media that your Network is thriving, growing by 3% from 2017 to 2018 from £15.2m in 2017 to £15.7m in 2018. You, our Members, are at the heart of everything we do. Last year, Premier Members grew on average by 11%, maintaining the double digit growth we saw in 2017. This is mirrored by our Strategic Insurer Partners who had an 11% growth rate on a like-for-like basis. Click here to read more
UNLOCKING OUR MEMBERS’ FUT URE! We’re delighted that our first group of Members are ready to start their Learning Network and CII Aspire apprenticeship. To celebrate the beginning of their 18 month journey, we’re hosting a Learning Network Apprenticeships launch day at the CII office later this month. We’re looking forward to welcoming the ‘class of 2019’ – it will be a fantastic opportunity for them to gain a thorough understanding of the programme, maximise their learning, meet their fellow apprentices and start to form relationships which will be invaluable as they go through the journey together.
MI L ESTON E MEMBERSHIP FOR E SSE X INSU RA N C E BROKERS Congratulations to one of our Members, Essex Insurance Brokers, who is celebrating an amazing 20 years as a Broker Network Member! Senior BDM Chris Ball presented the Directors of the brokerage, Neil and Beverley Harle, with their certificate and a bottle of champagne to mark their milestone.
SIGN UP FOR OUR N E W V I RT U A L CL A SSR O OMS Building on the success of our first two Virtual Classrooms, we’re delighted to say we’re launching two brand new workshops in July – Bounce Back with Resilience and Give Me Time. Following your feedback, the new Virtual Classrooms will offer a more flexible schedule with different classes available on a range of dates to allow you to pick the time and day that suits you. Click here to view the course schedule
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Support your clients in managing risks
Read all about 'Member speed dating'
Rob Corner, Strategic Account Manager at Allianz, explains how the new Allianz Risk Management site has a wealth of information on a huge range of topics, such as data management, cyber threats and managing mental health in the workplace, that you and clients can take advantage of, regardless of whether they have an Allianz policy.
In the first part of our three part interview series with Paul Longhurst, Broking and Distribution Director at Bishopsgate, we found out how his hiring policy had helped establish a firm relationship with Broker Network. Now, we ask him whether his “member speed dating” is working as well as he had hoped.
Click here to find out more.
Can you name your Regional Champion? Do you know who your Ecclesiastical and Ansvar Regional Trading Champion is? Based across the UK from the North to the South East, your Champion will act as an ambassador for your business within Ecclesiastical and Ansvar, providing advice and guidance to help you retain and grow your business. Click here to discover your Regional Champion.
Click here to find out more.
Are your clients’ smart home devices safe? From Alexa to Hive, smart home devices are a common addition to UK homes with a quarter of us now owning at least one. With the rise of their popularity, there are concerns around the potential risks of some of these devices. However, Arslan Hannani, Head of Market Management at Zurich, believes cyber security issues with smart home devices will become less of a concern in years to come. Click here to read what he had to say.
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IS THERE EVER A RIGHT TIME TO SELL YOUR BUSINESS? The Managing Director of Ethos Broking, Richard Tuplin, recently penned a column for Insurance Business Magazine on the driving factors behind selling your business – and why finding the right buyer is so crucial. We know that many of you are interested in the acquisition process, so wanted to share this with you. Here’s a snippet from the article: “It’s easy to lose the human element within the world of mergers and acquisitions. Many of our competitors are hard line consolidators buying with nosebleedinducing multiples. These multiples are so high, in fact, that by definition the consolidator is forced to make a drastic impact on the business they are acquiring in order to leverage enough revenue to support the deal. “As a business owner, especially an SME, that notion can be terrifying. I understand this on a personal level because I have lived and breathed this whole process as a broker myself. For you, each number isn’t just a number – it means something tangible,
emotional and personal. Your GWP includes that astounding success your top salesperson landed last month. Your costs include your infamous staff Christmas party. Your profits drive the bonuses you’re able to reward your employees with at the end of the financial year. It’s all inextricably linked to your people. “Your figures are of course crucial to ensuring that your business thrives. I’m not here to lecture you on multiples, but what I would say is that it’s impossible to reduce your business into something that can be broken down into neat parts, without losing a piece of the magic that makes it unique. “With the process of selling your business being such an emotional experience, the question of timing only seems to add to the complexity of the issue. However, there are a few driving factors that can push you towards the pursuit of the right bidder...”
TO READ THE FULL COLUMN, CLICK HERE
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JOIN THE BNU Hungry for success?
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OUR APPETITE:
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This is a BYOR (bring your own risk) breakfast, so bring along your rollovers and risks to the underwriting surgery and speak to BNU’s in-house experts face to face.
you: s it su st be at th on ti ca Lo d an te da e th Choose De Vere Cranage Estate Byley Ln, Cranage, Crewe CW4 8EW
Macdonald Berystede Hotel & Spa Bagshot Road, Sunninghill, Ascot, Berkshire, SL5 9JH
9 − 10 am: Guest arrival with breakfast buffet and refreshments 10 am: Meeting to commence 11:30 am: Meeting to close
book today
Places are limited therefore please contact Alison Fordham on 01423 554 135 or alison.fordham@bravo-group.co.uk to reserve your place.