UK: Fit For Purpose? New Year’s Anti-Bribery And Corruption Health Check For Insurance Intermediaries

For some, the New Year signals a renewed focus on wellbeing. To assist our clients assess the health of their "anti-bribery and corruption" ("ABC") compliance frameworks, we look back on the Financial Conduct Authority's ("FCA's") recent thematic review on "Bribery and Corruption in Commercial Insurance Broking" (the "Review").

In this article, we jog through the key ABC obligations for authorised firms and work out what new issues were identified in the Review. Finally, we suggest some New Year's resolutions by highlighting examples of "good practice" to potentially tone up your ABC compliance programme.

ABC Obligations for Authorised Firms

The Bribery Act 2010 (the "Bribery Act") marked a watershed in criminalising certain corrupt business practices, whether committed in the UK or abroad, for all commercial organisations. The Bribery Act introduced into UK law the offences of:

  • Failure to prevent bribery carried out on its behalf by a commercial organisation; and
  • Consenting to, or conniving in, the bribery of another person by a senior officer of a commercial organisation.

The duties imposed on firms authorised by the FCA under the Financial Services and Markets Act 2000 ("FSMA") are distinct from their obligations under the Bribery Act. Additionally, firms authorised by the FCA must comply with the provisions of the FCA's handbook, which include having systems and controls in place to manage ABC risks.

The Review

In 2010, the FCA's predecessor published a review in which serious weaknesses in some insurance intermediaries' ABC systems and controls were identified. The 2010 review concluded that there was a significant risk that some insurance brokers might make illicit payments or inducements to, or on behalf of, third parties to win business.

The more recent Review assessed not only how the insurance sector had responded to the issues previously identified in relation to payments to third parties, but also considered whether insurance intermediaries were adequately addressing ABC risks across their wider businesses by reference to factors such as intermediaries' governance; due diligence and ongoing monitoring of individual relationships; training; and whistleblowing.

Key Findings

According to the FCA, most of the insurance brokers sampled in the Review were not adequately managing ABC risks. A number of firms reviewed had not learnt lessons from the previous exercise.

The Review identified three key areas in which firms can improve going forward:

  1. Business-wide risk assessments – firms should identify bribery risks across the trading and non-trading aspects of their businesses, including all parties in the chain;
  2. Individual relationship risk assessments – the FCA expects firms to assess risk on a business-wide level (such as the risks associated with the sector, the class of business and levels of commission payments), rather than focusing on the political risk associated with a particular jurisdiction; and
  3. Governance and management information – firms should ensure that senior management maintain oversight of risk management.

The FCA, therefore, seems to be suggesting that authorised firms take a more holistic approach to risk management in the future. The FCA is encouraging firms to not only assess risk as a top to toe check across the entire business, but also at a more granular relationship level. Naturally, the results of such assessments should be shared with senior management and any issues acted on appropriately.

New Year's ABC Resolutions

The Review featured a number of recommendations for "good practice", which include:

  • Appointing an Anti-Corruption Officer (or an appropriate member of senior management with responsibility for ABC)
  • Ensuring risk assessments and due diligence are conducted using a number of different risk factors and then aggregating these risk factors to create an overall risk ranking
  • Ensuring that the business rationale for third party introducing arrangements is clearly recorded
  • Where a higher-risk relationship is identified, seeking senior management approval for the relationship with a full audit trail of the reasons justifying the high risk relationship
  • Setting meaningful and proportionate gifts and hospitality thresholds that are relevant to the business
  • Establishing registers to record gifts and hospitality, including incidents where proposed gifts or hospitality have not been approved
  • Implementing a training programme that is repeated periodically
  • Conducting a gap analysis of the FCA's initial thematic reviews on ABC
  • Creating an "Aide Memoire" for staff listing key points concerning ABC


The FCA has promised to take a zero tolerance stance where authorised firms have been warned of the risks of failing to comply with its ABC framework and take no, or inadequate, action. For instance, as a result of the Review, two firms voluntarily agreed to limit their business with certain third party introducers until they were able to formally attest to the FCA that remedial action in respect of such relationships had been completed.

The Review was published at the same time as the FCA opened a consultation on its "Financial Crime Guide" and forms part of the FCA's ongoing probe into wider financial crime systems and controls at authorised firms.

The New Year may, therefore, prove to be a good time for a health check of your ABC framework and wider financial crime systems and controls, and, if necessary, to adopt some New Year's ABC resolutions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Vikram Sidhu
Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions