You are required to properly train your staff and ensure they do not have access to procedures that they are not skilled enough to handle. To this end you should…
Before you sell a product to a customer you need to ensure it matches their needs, and afterwards you need to ensure they know exactly what they’ve paid in terms of the premium, charges and tax. To this end you should use a Word template like the one, supplied by Durell, called “Demands & Needs, Motor” to agree on the suitability of the product before selling it, and the one called “Statement of Price” to provide them with a detailed breakdown of the price after selling it (see “Templates, New” re the creation of your own version of these templates).
Use the Complaints program (see “Complaints, Create New”) to record any new complaints that your company receives, ensure you respond promptly, and keep copies of all correspondence for at least three years (n.b. which can be scanned and stored in the client’s Document Viewer – see “Scanning Generally”).
If you’ve been running your Durell system for a number of years then you are strongly advised to start a new set of accounts (see “Accounts, Starting a New Set of Accounts”). This is not an FSA requirement, but will remove the possibility of old accounting errors being carried forward into your new FSA compliant system. This is particularly the case if you haven’t been running the “Transferable” commission routine regularly (see “Accounts, Period End, Transferable”.
As of January 2005 you must run the “Transferable” commission routine at least every 28 days (see “Accounts, Period End, Transferable”). To this end you will receive reminders from the system to transfer your commission from around three weeks after the last transfer until you complete the next one. Durell has also made changes to the Cashbook Reconciliation process (see “Accounts, Cashbook, Reconciliation Adjustments”) that now allows discrepancies between received client monies and late arriving insurer statements to be resolved. Hence you now can and must reconcile all received client monies promptly.
You may be requested to list the contents of your Client Bank Account, which you can do via that report (see “Reports, Accounts, Client Bank”).
You must be able to prove solvency, which ultimately should be done via the Balance Sheet (see “Reports, Accounts, Trial Balance, Balance Sheet And Profit & Loss”). Unfortunately a full Balance Sheet includes depreciation and accruals, etc, which may be beyond the accounting ability of many brokers, except at the year end when these matters get resolved by their auditors. In the meantime a simpler version is available on the Accounts Reports screen, called “Basic Solvency” (see “Reports, Accounts, Basic Solvency”). You should run this when required by the FSA, save the displayed report as a Word document or Excel spreadsheet, then email it to them as an attachment (see “Reports, Printing and Exporting Lists to Word or Excel”).