Broker Larksway, which is currently in liquidation, has had its Financial Conduct Authority authorisation removed after the regulator alleged it failed to comply with a Financial Ombudsman Service ruling.
The FCA permanently revoked Larksway’s authorisation today, after it alleged the broker failed to comply with a ruling by the FOS.
The move came after a customer who bought a professional home let policy through Larksway found her insurer declined to pay out for a claim.
The FCA’s final decision notice stated: “The insurer rejected the claim on the basis that liability for theft and malicious damage was excluded where the property was not furnished for normal habitation. Ms B complained to the FOS that Larksway had not provided her with an insurance policy that met her needs and that Larksway had failed to explain the important restrictions in the policy that could affect her.”
The complaint was upheld and Larksway was ordered to pay out in 2015.
According to the FCA, the broker “has failed to comply with the FOS award, despite repeated requests by the FOS and the authority that it do so”.
The regulator first blocked Larksway from providing cover in September last year, citing failures by the broker to provide it with information on premium handling, ability to meet liabilities and banking arrangements. This is according to the FCA’s supervisory notice.
Following the regulator’s action and concerns over “alleged debts”, Larksway fell into liquidation in December 2017.
The broker has disputed the FOS award but not sought a judicial review, according to the decision notice. In a 29 August 2017 letter to the FCA it also disputed its “alleged debts”.
- Top 100 Insurtech: Quarter four update
- Charles Taylor bolsters liability team by hiring senior sextet from Vericlaim
- Roundtable: Is a single customer view taking off in insurance?
- I work in insurance: Stephanie Horton, River Canal Rescue
- Insurtech diary: Getting stuck into insurance
- Analysis: The mystery of the missing Insurance Fraud Taskforce report
- Gallagher Bassett acquires claims management firm