FCA warns landlords to check insurance policy

FCA warns landlords to check insurance policy

The Financial Conduct Authority has cancelled the permissions of an insurance broker after it failed to abide by a Financial Ombudsman Service ruling.

Larksway Investments was told to compensate a landlord after it sold her a professional let home insurance policy which failed to pay out when the client's property was broken into.

The ombudsman ruled in 2014 that Larksway had failed to explain the important restrictions in the policy that could affect the landlord and after the client accepted the decision, the ruling became binding on both her and the firm.

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In a final notice, the FCA said: "Larksway disputes the Fos award. However, it has not sought judicial review of the award, which therefore remains binding on it under section 228(5) of the [Financial Services & Markets] Act. Larksway has failed to comply with the Fos award, despite repeated requests by the Fos and the authority that it do so."

The FCA said that by not paying the award, Larksway had breached its rules which require firms to comply promptly with any award or direction made against them by the Fos, as well as principle six, which requires firms to pay due regard to the interests of their customers and treat them fairly.

At the same time as publishing the final notice, the FCA also published a consumer warning about Larksway, which is currently in liquidation.

This warning said: "Customers of Larksway should check their policy documents and consider contacting the insurance company who they think their insurance policy is held with as soon as possible to find out if the policy is valid."