Avoiding FCA regulation? The CMC’s and the AR’s to an insurance broker
FCA-authorised company Dragon Brokers Limited who trade as Dragon Insurance Brokers seem to be having a busy time of late if their increasing list of Appointed Representatives is anything to go by. According to their website, the company are a network who constantly strive to improve the process of selling insurance” and who “have particular expertise in telesales; many of our AR’s are large contact centres with varied industry backgrounds from Claims Management to DM/IVA firms.”
The website states that by joining the Dragon Network as an Appointed Representative it “permits you to carry out regulated activities without the requirement to be Directly Authorised by the FCA.”
So who has recently joined the network?
1. On 6th February, 2019 the Manchester based company, Blue Beacon Services Ltd signed up as an AR. Blue Beacon Services was incorporated on 14th December 2018 by directors Justin and Adam Tarrant and Phillip Badcock who are also the directors of Easy Claim Collections Ltd.
2. On 18th January 2019, Tailored Lifestyle Solutions Ltd was appointed as an AR for Dragon Brokers Ltd. Tailored Lifestyle Solutions Ltd was incorporated on 1st November 2018 by directors Kieron Edginton and James Loizou. Kieron Edginton is also the director of comparison website, Comparethenetworks.com.
3. On 30th November 2018, Cab Ins. Solutions Ltd was registered as an AR. The Lancashire based company was formed in September 2018 by Anthony Doran, who is also the sole director of the claims management company, Claims Advice Bureau (UK) Ltd.  According to their website, this authorised CMC is also a member of the Alliance of Claims Companies.
4. On 21st February 2018, WFAC Lifestyle Ltd was registered as an Appointed Representative with the trading names of We Fight Any Claim Lifestyle, We Plan Financials, We Plan Group, and We Plan Lifestyles. WFAC Lifestyle Ltd was incorporated in September 2017 by Richard Joseph Thomas, with the majority shareholder being We Fight Any Claim Ltd
And what of Dragon Brokers Ltd themselves? Their latest set of accounts were filed in December 2018 and show assets of £173,137. The company was set up in 2013 by directors Simon Wayne Smith, Kash Khalid and Robin Lawrence Jones. They were joined in February 2018 by Dominic McDonnell.
On 5th December 2018, Simon Smith, Robin Jones and Dominic McDonnell set up ScoreCallers Ltd which offers software solutions to various industries. On 15th January 2019, Dominic McDonnell also set up a community investment company, The Goodness Collective C.I.C.
Simon Smith and Robin are also directors of Dragon Compliance Ltd and both are listed as having control along with a company called Manchester Outsourcing Ltd, which was placed into voluntary liquidation on 29th August 2018. The Statement of Affairs values the shareholding in Dragon Compliance Ltd at £5,000 but perhaps what is more intriguing is the list of numerous unsecured non-preferential claims which include HMRC and 2 intercompany claims from Claims Advisory Group Ltd and Transac Solutions Ltd for £3,356,939.00 and £510,289.
The Claims Advisory Group Ltd had their CMC authorisation cancelled by the CMC in July 2018.