Insurance Regulatory eBulletin - Enforcement action

FCA fines round-up
FCA regulatory fines for 2018 now total £4.7m. The following fines and related enforcement actions have been announced in the past month:

Darren Colvin Cummings The FCA imposed a fine of £29,300 and a general prohibition for breaches of APER 1 and FIT relating to a lack of fitness and/propriety in the general insurance and mediation sector.

The FCA found that Mr Cummings acted dishonestly as, whilst being approved to perform the CF1 (Director) controlled function at DCC Financial, he knowingly made numerous false and misleading statements to the FCA concerning his qualifications and experience including fabricating documents pertaining to qualifications needed to provide investment advice to retail consumers.
Canara Bank The FCA imposed a fine of £896,100 and a restriction on accepting deposits from customers for 147 days for breaches of Principle 3 and SYSC related to financial crime in the retail bank sector.

Between 26 November 2012 and 29 January 2016, the FCA found that Canara failed to maintain adequate AML systems and failed to take sufficient steps to remedy identified weaknesses, despite having been notified of shortcomings in its AML systems and controls. Specifically, Canara failed to maintain adequate systems and controls to manage the risk of money laundering. These failures were systemic and affected almost all levels of its business and governance structure including: (1) Senior Management; (2) Governance / Oversight; (3) three Lines of Defence; (4) Money laundering reporting function; and (5) AML systems and controls.

Information Commissioner’s Office (ICO) fines round-up
No fines affecting financial services firms have been announced in the past month by the ICO.