Is your firm authorised to perform Insurance Mediation Activities?

The arrangement of insurance products and services is a regulated activity under the Financial Services and Markets Act 2020. Firms acting in a professional capacity undertaking insurance mediation activities on behalf of clients need to be aware it is a regulated activity and, must either be authorised to do so by the Financial Conduct Authority (FCA) or fall within a permitted exemption.

For private client professionals, the following are all considered to be insurance mediation activities

– Arranging policies
– Assisting in the administration of policies
– Assisting in the performance of policies
– Advising on contracts of insurance.

Common policies in estate administration include, but are not limited to;

– Unoccupied Property Insurance
– Missing Will Insurance
– Missing Beneficiary Insurance
– Early Distribution Insurance.

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Section 327 of the Financial Services and Markets Act 2020 allows for members of certain designated professional bodies to be exempt from the requirement for authorisation with the Financial Conduct Authority, provided that certain conditions are met. Chiefly, that the insurance mediation activity is linked to the provision of its core service.

The Solicitors Regulation Authority, through the Law Society, is a designated professional body meaning SRA regulated law firms can undertake such activities under their existing SRA regulation without separate authorisation from the Financial Conduct Authority (FCA). However, the SRA has a responsibility to inform the FCA of firms relying on exemption criteria to undertake such activities and so should be informed. The SRA can then provide details to the FCA so that firms appear on the FCA register as a firm exempt from FCA authorisation for relevant activities.

You can read more information on the SRA website here (https://www.sra.org.uk/solicitors/resources/accounts-finance/financial-services/).

You can also email the SRA at [email protected] providing your company name, SRA registration number, and name of your compliance officer asking to be added to the exemption list. If accepted, your firm will then appear on the FCA Financial Services Register as an exempt firm.

If you are not a SRA regulated firm and are wishing to arrange insurance for clients in the line of your work please get in touch to discuss possible alternative arrangements.

Please email [email protected] or use our ‘Contact Us’ form.