Miller Europe Pays €500,000 to Settle Governance Failures with Belgian Regulator

Key Takeaways

• €500K Settlement: Miller Europe will pay a half-million-euro fine and appear on the FSMA’s public sanctions list.
• Years of Oversight Failures: 250 active sales staff went unreported, 96.5% of its PCPs as of late 2023.
• Governance Lapses: No new distribution managers were appointed despite a legal requirement to do so.
• Post-Brexit Growing Pains: The issues trace back to the firm's shift from a UK-based operation to a Belgium-registered broker in 2019.
• Compliance Course Correction: The firm has since taken corrective steps and cooperated with regulators, avoiding harsher penalties.

Deep Dive

For nearly five years, Miller Europe let hundreds of its front-facing insurance staff slip off the regulator’s radar. Now it’s paying the price. The Belgian Financial Services and Markets Authority (FSMA) announced this week that it has reached a €500,000 settlement with the Brussels-based broker, a firm born out of Brexit as the EU-facing arm of the UK’s Miller Insurance Group. Alongside the fine, Miller Europe will be named publicly on the FSMA’s website, a regulatory rite of passage for firms caught sidestepping compliance obligations.

At the heart of the issue: people. Or more precisely, the Persons in Contact with the Public (PCPs), insurance sales staff whose presence must, by law, be promptly reported to the FSMA. Between March 2019 and November 2023, Miller Europe failed to disclose 132 PCP changes. By the end of last year, 250 active PCPs had gone entirely unreported, roughly 96.5% of the firm’s frontline.

Worse still, the firm never caught up. As the number of PCPs ballooned, it neglected to appoint the required supervisory figures, responsible distribution managers (RDs), to oversee them. Belgian law requires at least one RD for every 10 PCPs. Miller was short by 24.

To its credit, Miller Europe has since gotten its house in order. According to the FSMA, the firm has updated its internal controls, adopted new tools to track compliance, and bolstered its leadership by naming two new directors. These remedial actions, combined with Miller’s cooperation during the investigation, helped pave the way for a settlement rather than more punitive measures.

The FSMA emphasized that its enforcement strategy includes the option of settling when firms take accountability and collaborate with the regulator.

The story also serves as a post-Brexit compliance cautionary tale. Before the UK’s departure from the EU, Miller operated in Belgium through a UK-based branch. That changed in 2019, when Miller Europe was formally registered as a Belgian insurance and reinsurance broker. But as the structure evolved, governance didn’t always keep pace.

In the end, it wasn’t misconduct that landed Miller Europe in hot water, it was neglect. A slow drip of missed reports, un-appointed supervisors, and overlooked regulatory obligations ultimately added up to a half-million-euro penalty and a very public reminder that when it comes to compliance, the small stuff matters.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.