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The FSA began regulating general insurance intermediaries seven years ago, including how they hold client money.
Various concerns have arisen during the course of the regulator's review of CASS 5, which include poor understanding of the Rules and subsequent poor compliance, missing or incomplete documentation such as trust deeds and trust letters. This Consultation Paper (CP) contains various proposals for changes to the CASS 5 rules.
This CP is aimed at all insurance intermediaries to whom CASS 5 applies. It would also interest insurers, particularly the discussion on risk transfer.
The FSA would also welcome views from relevant trade bodies, market participants, customers and other interested parties. Comments on this paper are expected by 30 November 2012. The regulator expects to publish its feedback to this consultation and final rules in the second quarter of 2013.