Broking Business – Summer 2024

Welcome to the latest edition of Broking Business – Summer 2024

Our recent experience of advising and carrying out audits for consolidators in the broking sector has shone a light on many accounting issues. Some are recurring, others are more unusual. But most lead to accounting and audit challenges. We share insights to help guide you through the accounting complexities that can arise when acquiring another broking business.

The FCA is hot on the heels of firms that try to set up or run non-statutory trust (NST) client money accounts without the required auditor sign-off. Is your firm compliant with the requirement? We explore how you can obtain your letter, the consequences and possible reasons for non-compliance, and offers guidance on how to avoid getting caught out.

The FRC has recently published periodic changes to FRS 102. So, what do these changes mean to you and when should you adopt them? We review the updates in detail and shares insights on the key changes, how your revenue streams will be impacted and whether you should consider early adoption.

More and more large consolidators are tending to take a ‘belt and braces’ approach when it comes to audit, costing them a great deal in fees. Could the answer be to use the parental guarantee entitlement of the parent company? Whilst take up of the parent guarantee to bypass audits is relatively uncommon among insurance intermediaries, we explain why it could be right for you.

As always, please contact any of the team to discuss how we can support your business and let us know your thoughts on future topics.