I watched a webinar, other day with two people from an Insurer, one very popular broker and a compliance company CEO.

As the programme progressed it was clear the compliance guy had clearly deluded himself on his understanding of what actually goes on within a Brokers office. Yet he still tried to pretend he was the font of all knowledge. Fortunately he was trapped very successfully by the broker who blew his cover.  

We all think compliance companies are qualified to give advice. The reality is they are nothing of the sort. It is a misnomer to even entertain the idea; at best they give an opinion and at worst it’s total bull. 

There is absolutely no specific CII exam for compliance. Although to give the CII credit it does raise some compliance issues in various papers.

The FCA does not regulate compliance companies for reasons as yet unknown even ten years after its predecessor took over from GISC.  

Do we really need over 8000 plus pages of regulation? Of course not, it’s insane and got totally out of control. Can it be addressed/ of course but as I’ve said before don’t turkeys vote for Christmas.

What happens if your compliance company gets it wrong? The FCA will take note but not do anything else. You will be left to pay out whatever damages you suffer to clients in the meantime. Officially the use of compliance companies is deemed a commercial decision by you and me, and no more, and your only avenue to recourse is Court action.

Unfortunately the belief that any representative organisation will do anything about this massive gap in regulated persons continues unabated. It’s not a natural emotion of brokers to make a stand as individuals, mostly because no none wants the hassle and we have all seen how vindictive the FCA can be.

To increase the fees when an election is on, to miss the headlines is the ploy used to burry bad news by politicians going down the plug hole.

Yes a regulator is necessary, but not one that seeks to shoot first and ask questions later, who refuses to comply until it has to with the Treasury Select Committee and who looks to attack brokers with over-zealous regulations, who even BIBA keep calling a low risk counterparty but no one listens.

Logic always wins out in the end, however some folk continue to defend the indefensible. But you need to ask yourself why is nothing changing? The answer is simple: it’s because we are all mugs for believing that the present representatives will deliver change when in fact it suits them not to.

The bottom line is we are on our own and need to rethink the direction we are going before it’s too late

So when it comes to compliance companies, please be very wary of believing they are giving advice, because they are doing nothing of the sort. They will offer a lot of wind, bluster, generalities and unfortunately far too much sanctimonious and patronising claptrap. Please never forget they are only offering an opinion, and we can all get that from the driver of the number 74 bus for free!! 

Robert D Marshall –Trident Insurance