The FCA has taken the opportunity of its latest Regulation Round-up email to remind insurers and intermediaries of their duty to ensure that risk transfer agreements are properly in place.
In particular, the regulator said it has seen instances where Terms of Business Agreement (TOBAs) do not accurately reflect the intent of arrangements or the specifics of intermediaries’ operations.’
The FCA insisted that insurers must review their TOBAs regularly for inappropriate wording and maintain adequate oversight to ensure these agreements are complied with.