FCA FINES LLOYD’S BROKER FOR ‘SERIOUS FAILINGS’

The Financial Conduct Authority has fined Lloyd’s broker Alsford Page & Gems (APG) for “serious failings” related to the sale of extended warranty insurance products. In particular, APG failed to put effective systems and controls in place to provide oversight for six appointed representatives when it expanded into the extended warranty market. The broker has agreed to pay £399,902 to customers in restitution and agreed to “resolve these matters”. The FCA said it would have fined APG £670,600, but waived the penalty after the broker provided “verifiable evidence that payment of such a penalty would have caused the firm serious financial hardship”. AFG’s parent PSC Insurance Group has voluntarily agreed to fund the restitution payment to customers.