14 January 2005 will be the most important regulatory day ever for the UK insurance industry. From that day, the advertising, broking, selling and administering of most general insurance policies in the UK will be regulated by the Financial Services Authority.
New Law: Financial Services Authority Regulation of General Insurance Sales, Advice and Administration
Currently, the advertising, selling and administration of most general insurance policies is outside the remit of the Financial Services Authority and other than the distance marketing regulations introduced on 31 October 2004, has not been the subject of specific wide ranging legal regulation.
What will change:
Following Brussels legislative initiatives, from 14 January 2005 all this will change when the general insurance industry in the UK will be regulated by the Financial Services Authority.
This will mean that general insurance such as motor cover, household contents, household emergency cover and credit card loss insurance will all be under the FSA umbrella.
Following the standard FSA approach, this will mean that most of those advising on, broking, advertising, selling and administering general insurance cover will need to be authorised by the FSA before they can continue with any of these activities from 14 January 2005 onwards.
They will also need to abide by copious FSA rules which touch on pretty much every aspect of the insurance process. Most of these can be found in the Insurance Conduct of Business source book section of the FSA Handbook. Markletinglaw will be reporting on specific issues as they arise.
Next Important Date:
Friday 14 January 2005