The Directive means that firms carrying on insurance distribution activities will need to change the way they work from 23 February next year. We are now consulting on the best way for firms to meet the new requirements.
Replacing the Insurance Mediation Directive, the new Directive aims to strengthen protections in place for clients, such as improving the information they receive.
We are proposing changes to the Handbook to cater for these new requirements, as set out in the consultation.
Paul Philip, SRA Chief Executive, said:
“We are proposing changes that meet the minimum requirements of the new Directive without putting unnecessary burdens on firms. We have worked closely with the Financial Conduct Authority (FCA) as the primary regulator and they are happy with our approach.
“For example, in terms of the training requirements that the Directive imposes, our Code of Conduct already makes it clear that the profession should assess its needs and take action to make sure it provides a proper standard of service to clients.
“We now have a short consultation on our proposals, and we would welcome views on our suggested way forward.”
Firms working in personal injury, conveyancing of probate are most likely to be affected. For example, they might arrange after-the-event insurance in a personal injury matter or defective title insurance in a conveyance.
There may be other insurance products that firms advise on or arrange for their clients.
All firms should therefore assess their own individual practices to see if the new Directive impacts upon them.
We will be writing to a number of firms that have indicated in their response to the Financial Services Activities questionnaire that they carry on insurance mediation activities.
The consultation, which runs until Monday 20 November, can be found here:
Go to the consultation
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