Released on: September 11, 2008, 10:36 pm

Press Release Author: Burgesses

Industry: Financial

Press Release Summary: Intermediaries are being warned to check the domicile of
their general insurance product providers, or risk being out of pocket.

Press Release Body: Intermediaries are being warned to check the domicile of their
general insurance product providers, or risk being out of pocket. That’s because
providers that are domiciled overseas are not subject to the demands of the
Financial Ombudsman Service (FOS) and the Financial Services Compensation Schemes
(FSCS), says Burgesses.com.

It cautions that when the mortgage and general insurance industries came under
statutory regulation, they immediately signed up to meet industry standards of
professionalism and competence – that included offering access to the FSCS.
Crucially, the FSCS has the power to compensate consumers in the event of the
failure of any firm that is authorized. That guarantee does not apply to customers
of firms domiciled outside the UK. That can have real consequences for
intermediaries selling or advising on products from overseas providers that have no
obligation to the Financial Services Authority (FSA) or the FSCS.

Sara-Ann Burgess managing director of Burgesses.com explained:

“Intermediaries choosing to sue these firms are denying their clients access to the
compensation through the FSCS should something go wrong and they could end up
footing the bill.

“Those advising or selling products provided by insurance firms that fall outside of
the regulatory regime, and therefore not suing the key facts logo nor providing
prescribed information, could also be deemed to fall foul of the FSA’s treating
customers fairly guidelines.

“Intermediaries should do a little homework to make sure they don’t place themselves
in a vulnerable position by using a non-UK regulated product provider.”

Web Site: http://www.burgesses.com/news

Contact Details: Burgesses Limited
PO Box 6164
Braintree
Essex
CM77 7ZW
Sara-Ann Burgess
01371853027