The FCA said it has taken action to protect consumers by stopping Arthur Temlett, trading as Abacus Insurance Consultants, from carrying out any regulated activities, including acting as an insurance broker.
The regulator says it is “concerned that Abacus Insurance, which was based in Dumfries and Galloway, may have been selling home/motor insurance and not passing premium payments on to the insurance provider.”
“Having a valid insurance policy is essential, and customers affected may be concerned about whether cover they have paid for is in place,” the FCA has added.
“Customers who purchased car and home insurance from Arthur Temlett should contact their insurance providers directly to check that it is valid and in place. If they are uninsured, they should arrange alternative cover immediately.”
At this stage, consumers do not need to submit complaints to the Financial Ombudsman ServiceLink is external. The FCA is continuing its enquiries and will provide updates online, including whether consumers should contact the Financial Services Compensation Scheme.
In a separate legal case, the FCA has provided an update on its case against a care home investment scheme, and has welcomed “a positive outcome for investors, following our High Court proceedings over collective investment schemes.”
The FCA’s claim was against Lupton Fawcett LLP “in respect of work undertaken for the Qualia Group of companies by a former member of the firm in and around 2016.”
The regulator had alleged “that Lupton Fawcett LLP had been knowingly concerned with the promotion of collective investment schemes operated by Qualia.”
The two sides “have now settled that claim on confidential terms.” The FCA has also said it “will contact affected UK-based Qualia investors in due course to arrange distribution of funds.
“As part of that settlement process, and without any admission of liability, Lupton Fawcett has said: ‘Lupton Fawcett LLP wishes to express its profound regret that it ever became involved with the Qualia group of companies, and Lupton Fawcett LLP further supports the FCA in its message to professional advisers, namely that particular caution should be exercised in the context of providing advice in connection with collective investment schemes,’” the FCA said.
Also last week, the FCA announced that “London Community Credit Union (LCCU) was placed into administration and has now stopped trading. James Sleight and Stratford Hamilton of PKF Littlejohn Advisory Limited have been appointed as joint administrators.”
According to the regulator, “LCCU is a financial co-operative owned by its members. It is regulated by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) under Firm Reference Number (FRN) 213743 as a deposit-taker.”
The Financial Services Compensation Scheme (FSCS) is stepping in to protect members and will return members’ money within seven working days from when the Credit Union was declared in default (22 January 2025), the FCA said.
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The FCA and the Payments Services Regulator (PSR) have announced the next steps in their ongoing work to develop open banking in the UK, including the establishment of “a new independent company to drive forward variable recurring payments.”
“Open banking is a UK success story with over 11.7 million active users and over 22.1 million open banking payments made monthly,” the FCA said. And it says continued progress in this area is crucial for the UK.
Both the FCA and the PSR are committed to the challenge.
As a next step, the two agencies have agreed to launch a new variable recurring payments system, which will “give consumers and businesses more choice in how they make and receive payments safely, securely and efficiently.”
The agencies have also agreed to establish “an independent central operator to coordinate how variable recurring payments are made.” It will allow consumers to make recurring payments to utility companies, government and financial services firms.
Elsewhere, the FCA said it has “found wholesale brokers need to enhance their systems, controls, risk awareness and training to guard against money laundering.” It “focused on wholesale brokers in its review because of the important role they play in capital markets in facilitating deals.”
The review highlighted a number of points, including:
- an underestimation of the risks of money laundering firms are exposed to;
- over-reliance on others in the transaction chain completing appropriate due diligence checks on customers;
- limited information sharing between firms;
- insufficient awareness of the money laundering through the markets suspicious activity reports glossary code.
Steve Smart, joint executive director of enforcement and market oversight, said: “The flow of capital is an essential part of a thriving and competitive market, but tainted cash must not be allowed to pollute the rest. For the UK financial services industry to grow, investors and institutions need to have trust in it. Integrity is vital for that, and firms play a key role in helping to detect criminal activity.”