Deloitte Warns Life Insurers to Get a Jump on Internal Audits

“FINRA has noted that 2021 was the first full year that it examined firms’ compliance with the full scope of Reg BI-related measures, and in a report in 2022, it delivered a long list of shortcomings and oversights from imprecise guidance to inadequate controls, staff preparation, and training, as well as failure to comply with the conflict-of-interest obligation,” the Deloitte analysts report.

FINRA and other agencies “are now expected to act more forcefully against perceived lax performance,” the analysts add.

“Now is the time to get ahead of problems, through internal audits of sales practices and  employing technology to ferret out high-risk sales or communications that could be problematic, especially any patterns of misconduct, and addressing any instances of these with urgency,” the analysts say. “Well-managed internal company controls that ensure follow-through in all stages of the sales process along with meticulous record-keeping will be a necessity in 2023.”

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