The directors of companies with EL liabilities are responsible for the design, implementation and maintenance of control procedures that provide an adequate level of control to meet the relevant rules of the Financial Conduct Authority (“FCA”) including those in Insurance: Conduct of Business Sourcebook (ICOBs) 8.4 and SUP 16.23A. These responsibilities are:
- produce the Company’s employers’ liability register (“ELR”) for all policies entered into, renewed or for which claims are made from 1 April 2011, complying with the requirements in ICOBS 8.4.4 R(1)(a) and subject to ICOBS TP 1, as at 31 March 2019,
- obtain and submit to the FCA a written statement, by a director of the company responsible for the production of the ELR confirming that to the best of the director’s knowledge that in its production of the register the firm is either: i. Materially compliant with the rules set out in ICOBS 8.4.4R(2) and ICOBS 8 Annex 1; or ii. Not materially compliant with the provisions referred to in (i), in which case the statement must also set out, to the best of the director’s knowledge, the information required by SUP 16.23A.5R(3),
- obtain and submit to the FCA a report satisfying the requirements of SUP 16.23A.6 R, prepared by an auditor satisfying the requirements of SUP 3.4 and SUP 3.8.5 R to 3.8.6 R, and addressed to the directors of the firm.
The FCA has defined material compliance as being at least 99% of policies, required to be reflected on the ELR, being fully accurate and faithfully reproducing underlying information, to ensure a successful claimant search.