The Financial Services Authority (FSA) in Britain says general insurance brokers have no excuse for failing to protect client funds, after its “Guide to Client Money” helped to bring about a marked improvement in protection.

Between September and December last year the FSA conducted the third phase of its client survey work, visiting 161 general insurance brokers.

Most brokers that had used the FSA’s new tools – including the Guide to Client Money and a web-based training course – had a better understanding of handling client money than in previous assessments.

Insurance Sector Leader Sarah Wilson says general insurance intermediaries holding client money should be aware that the FSA could visit them at any time. They should act now to ensure they have the right systems in place.

Ms Wilson says FSA’s previous client money work revealed a worrying level of failure, and any transgressions will continue to be viewed seriously.