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Insight: Action on RMAR inaccuracies

In a recent investigation of 200 small firms selling F&I products, the FSA found half were not submitting accurate information with their Retail Mediation Activities Return (RMAR).

The FSA suggests senior management may have delegated the job to staff with a limited understanding of the RMAR, and many used rounded or estimated figures when filling them in.

When pressed to provide proof, 15 of the companies investigated withdrew their FSA authorisation, putting an end to their sales of insurance, and several were referred to its enforcement team.

To help solve the problems, the FSA has advised firms to be stricter about completing them, and has offered help with obtaining the correct figures, either online or over the phone.

Those who continue to submit incorrect information will be put on the FSA’s watchlist, potentially leading to further investigation and penalties.

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