11 January 2011 - The UK FSA published its latest quarterly newsletter specifically for Smaller Wholesale Insurance Intermediaries. It includes some interesting results of a review carried out by the FSA on compliance with risk mitigation standards in which such firms were shown not to be performing to acceptable levels. Areas of weakness included (i) adequacy of financial resources, (ii) strategic planning, (iii) handling of client money, (iv) governance, (v) risk management, (vi) treating customers fairly and (vii) control functions. The newsletter provides examples of poor practice in each of these areas and states that the FSA expects a firm which recognises those examples to take action to address them. The FSA also expresses concerns on all intermediaries' financial resources, e.g. reliance on third party funding and the granting of charges over assets as security for such funding. Intermediaries should carry out periodic assessments of its compliance with FSA rules in this regard, to be made available to the FSA on request.