Group Information
Ownership
Butcher Robinson & Staples International Ltd
("BRASIL")
Is a Lloyd’s broker which is authorised and regulated by the
Financial Services Authority (FSA) with the firm reference number 310478. A copy of the company’s ‘’Grant of Permission
Letter’ may be found on this web site.
The FSA maintain a Register of Approvals on their web site
which may be viewed through the web address www.fsa.gov.uk
BRASIL holds licences to undertake insurance mediation in
various parts of the world and has ‘Passport rights’ within the European
Economic Area (EEA). A copy of the FSA’s notice to BRASIL with regard to Passport Rights may be
found on this web site.
BRASIL
is 100% owned by Butcher Robinson & Staples Group Limited (BRSG) which is
in turn wholly owned by Butcher Robinson & Staples Holdings Limited
(BRSH). The ultimate holding company is
by some 50 shareholders mainly comprising executives, former executives and
their families and staff. The full
shareholder list is available through the Registrar of Companies.
Description of Company
BRASIL
is incorporated as a private limited company and acts as an independent
insurance intermediary in the
BRASIL
has an allotted and paid up share capital of £7,500,000
The
Broker part of BRSH and any subsidiaries, associated companies and fellow
subsidiaries are all wholly owned consolidated incorporated bodies with limited
liability under the UK Companies Acts. The directors are from amongst the
producers and shareholders.
The full corporate structure with subsidiaries and
affiliates is disclosed within the group accounts and a full copy can be
requested if required. The group is
independent from other intermediaries and insurers.
Background
BRASIL was formed as a limited company in 1962 and is
incorporated in
The holding company BRSH was formed in 2001 as part of an approved
‘scheme of demerger’ which was effected in 2002. The demerger
separated broking activities from the other activities of the former holding
company group and has allowed BRSH to focus on insurance broking
activities. Notwithstanding the demerger there has been continuity of executives and
ownership between the former holding company and BRSH.
The current main subsidiaries of BRSH were founded in 1976
to 1979. A company specialising in
Marine Cargo insurances was acquired in March, 1999, the business of which has
since been incorporated within BRASIL.
If there is a need for the actual incorporation dates and
changes in names, etc., please apply to the Company Secretary
Regulation
Registered
Lloyd's brokers are regulated under the Lloyd's Act 1982 by the Society and
Corporation of Lloyd's. The Lloyd's
brokers are authorised to act as intermediaries in respect of insurance and
reinsurance business obtained from anywhere in the world, subject to compliance
with local legislation.
BRASIL
is subject to the ‘Client Asset Sourcebook’ issued by the FSA. These rules are designed to protect client
money and in compliance therewith BRASIL has implemented a ‘Non Statutory
Trust’ and has obtained the required confirmation from its bankers that they
have notice of such arrangement and protection of client and insurer monies.
creditors.
The
FSA further requires that regulated brokers maintain a system for handling any
complaints and additionally there are in place schemes for the determination of
such matters in applicable cases (Financial Ombudsman Service and Financial
Services Compensation Scheme). Registered
Lloyd's Brokers are part of the LIBC compensation provisions and under the
overall Lloyd's umbrella and the UK Policy Holders Protection Act.
The
constitution of the company, BRASIL is set out in its Memorandum and Articles
of Association. The Memorandum and
Articles of Association are formal records of the company’s governance as
insurance and reinsurance brokers and are approved under the UK Companies Acts under
which group companies are incorporated and registered. Copies of these documents are files with the
Registrar of Companies
The
financial statements are prepared in accordance with generally accepted
international accounting standards and subject to independent audit in
accordance with the Companies Act. The accounts are approved by the members and
submitted to the Registrar of Companies
BRASIL
as part of the BRSH is accredited under the International Quality Standard ISO
9001 and subject to monitoring by an assessor company BVQI (Bureau Veritas).
Each
Broker is subject to the Insurance Conduct of Business Rules of the FSA and
also subject to appropriate general legal requirements including money
laundering rules as applicable.
The
business placed is regulated under various Acts of Parliament (for example The
Marine Insurance Act 1907) and is subject to the huge canon of commercial and
mercantile case law.
Licensing
There
are no specific restrictions in
Producers
Directors
of BRASIL and certain other persons are required to hold ‘Approved Person’
status with the FSA.
Additionally
various individuals are approved by Lloyd's
Many
brokers have Insurance qualifications and the certification scheme introduced
by Lloyd's for all those with access to the Room have been applied in full by
the group companies. All persons engaged in insurance require to be assessed as
‘competent’ in their job under the rules of the FSA
BRASIL
accepts instructions from approved overseas agents subject to agreed terms of
business.
All
UK Brokers with which we deal are also subject to regulation by the FSA and
arrangements are subject to Terms of Business Agreements. There are no casual
producers or businesses not licensed which may form part of the
intermediary-principal chain.
Details
of our normal Terms of Business as applicable to are contained on this website
Terms of Business Arrangements with
Clients
Terms of Business Arrangements with
Producers
Terms
of Business Arrangements with UK Retail Clients- Travel division
Authority of Individuals
All
officers and brokers representing the Lloyd's broker are permitted to make
arrangements for the placement of insurance and reinsurance. We are a broadly
based group with individuals holding particular responsibility and expertise in
specified areas.
All
negotiations are overseen by appropriate and empowered officers.
Details
of individuals holding specific responsibility in particular areas- eg Divisional Directors are available on request.
See
also ‘Contact us’
Insurance Coverage
Under
the rules of the FSA Brokers are required to hold specified levels of
Professional Indemnity Coverage. BRASIL
conforms to these requirements
The
current PI limit is up to £20,000,000 in the aggregate excess of £125,000 or
£25,000 in the case of certain risks and is placed with Lloyd’s and approved
underwriters.
Additionally
the group holds Directors and Officers cover.
Audits
All
group companies are subject to statutory annual audit by a leading
international firm of Chartered Accountants under the UK Companies Acts.
Audited Financial statements
A
copy of the company’s most recent financial statements together with the report
of the auditors thereon may be accessed through this ‘Account s’ web link
Conflicts of Interest
Directors
hold interests in shares in the company and may also hold service contracts
. Any other interest which a director
may hold in a transaction involving the company is required to be disclosed to
the company
Under
the Rules of the FSA it is the broker’s responsibility to declare to their
client any conflict of interest.
All
members of staff are subject to the normal employment laws on conflicts of
interest and constraints of trade
Handling of Funds of Ceding and
Assuming Companies
BRASIL
is governed by rules concerning Client monies which are held on behalf of insureds/markets under a Non Statutory Trust. Monies held in the Trust will be ‘co-mingled’
with insurer money which may occur in cases where the insurer has agreed to
‘risk transfer’ on acceptance of such funds and underwriting by the Broker.
Brokerage
is required to be withdrawn from client monies following receipt which represents
an additional protection in ‘ring fencing’ such funds
Brokers
are permitted to retain monies earned on client monies held where pending
settlement and such monies will usually be retained
The
Broker has an obligation to monitor the solvency of client monies which are
reported to the Board on a monthly basis and is subject to quarterly reporting
to the FSA.
It is the policy of BRASIL that monies be held only with
‘Approved Banks’ .No Client monies are
invested other than in cash or deposits with major international banks and institutions
without discernible credit risk.
As
part of their annual audit and as required by the FSA the company’s auditors
monitor client funds and solvency. No
separate certificate is however issued.
The Broker effects settlement by
fund transfer or cheque payment. Two
director or senior official signatories are invariably required for cheques.
Contractual arrangements define
settlement terms and in most cases settlement by clients represents a warranty
which must be complied with. Our
settlements to insurers are commonly directly debited by the bureaux.
It
is not the policy of the broker to fund settlements in advance of receipt of
funds. There may however be special circumstances
(e.g. a possible breach of warranty or client request) where an exception may
be put to the board. These circumstances where an insurer or reinsurer might request a "special remittance"
are rare and are strictly controlled.
We
are governed by and adhere to Lloyd's Code of Practice. The group standards and
procedures in accordance with manuals and market best practice are monitored by
compliance officers on each board, reviewed by auditors, BVQI and the review
department of Lloyd's. Prescribed returns are submitted to the FSA quarterly
and additionally Lloyd's undertake annual reviews. Operations are also reviewed under the
‘Quality Standard’, ISO 9001, both internally and by Bureau Veritas
Facilities and markets
As
International Insurance brokers many of the risks with which we deal are
subject to specific underwriter approval and will be subscribed to by a group
of underwriters. Our expertise is to
know those markets and present the information required by underwriters in the
form the underwriter requires to enable them to agree to write the risk.
In
a number of cases the market available may be limited
To
enable us to process business efficiently we have in place a number of lineslips where groups of underwriters have agreed their
requirements for acceptance of risks.
Certain
underwriters have agreed binding authorities for limited classes and types of
risk. Such cases are subject to
monitoring by underwriters and the Broker must adhere strictly to his
authority. It is recognised that use of
a binding authority potentially represents a conflict of interest as the Broker
acts both for the client and underwriter in different capacities. Where such cases arise we advise the client.
All
client monies are however subject to the same client money rules
Markets
used are subject to vetting by our security committee and we have regard to
security ratings issued by Best and S & P. All companies used are we believe operating
proper controls over their insurance funds