The FCA has fined Stonebridge International Insurance Limited (Stonebridge) £8,373,600 (including a 30 per cent discount) for failing to have appropriate systems and

controls over its sales and cancellation processes and failing to take reasonable steps to ensure that its customers were treated fairly. Stonebridge, a general
insurance firm, breached Principles 3 and 6 of the FCA’s Principles for Businesses.

In particular, the FCA found that:

• Stonebridge’s sales processes provided insufficient information about customers and therefore channelled customers toward broader, costlier cover than they
  needed;
• when customers tried to cancel their policies, Stonebridge’s processes presented them with barriers which resulted in customers taking out policies they did
  not understand;
• Stonebridge outsourced its sales but failed to provide adequate oversight of the companies acting as appointed representatives; and
• Stonebridge was unable to properly monitor the systems and controls in its European offices since its compliance department was inadequately resourced.

The FCA considered the failings to be particularly serious since a large number of customers were at risk of mis-selling. Stonebridge has carried out a past business
review of sales conducted in the UK and has also commenced a similar exercise in relation to products sold elsewhere in Europe.

Copies of the final notice and related press release are available.