U.K. regulator fines Lloyd's broker Besso for weak corruption controls

The U.K. Financial Conduct Authority has fined Lloyd's of London brokerage Besso Insurance Group Ltd. £315,000 ($524,381) for systemic weaknesses in preventing bribery and corruption between Jan. 14, 2005, and Aug. 31, 2011.

In a statement, the London-based FCA, which regulates insurance brokerages in the United Kingdom, said that “Besso failed to take reasonable care to establish and maintain effective systems and controls for countering the risks of bribery and corruption” associated with payments to third parties that either had commission-sharing agreements with Besso or helped it to win or retain business.

In a statement Wednesday, Besso acknowledged the fine and said the FCA “has not said that Besso permitted any illicit payment or inducement” to a third party.

Besso agreed to an early settlement and therefore received a 30% reduction in the fine levied against it, the FCA noted.