GIGI 1.2 Part III

From 14 January 2005, we (the FSA) will beresponsible for regulating insurance intermediaries. This Part of the Guide (together with Part I) is primarily for small intermediaries doing insurance mediation activities in relation to general insurance or pure protection contracts (except long term care insurance), collectively known as 'non-investment insurance contracts', from a permanent place of business in the UK. Insurance companies should be aware that, as this Guide is primarily for intermediary firms, it does not cover all of the obligations that apply to insurance companies in respect of non-investment insurance contracts.

This Part of the Guide (together with Part I) will help small insurance intermediaries we authorise already, or who have decided to seek authorisation, to find the rules in the FSA Handbook of rules and guidance (the Handbook) that apply to them. Part II will only be relevant to insurance intermediaries if they also deal with mortgages.

The rules explained in this Part are in:

1. (1)

   Chapter 5 of the Client Assets sourcebook (CASS 5) (see Chapter 2);

2. (2)

   Insurance: Conduct of Business sourcebook (ICOB) (see Chapter 3); and

3. (3)

   Training and Competence sourcebook (TC) (see Chapter 4).

The client money rules and the conduct of business rules do not apply to reinsurance business although if you do reinsurance mediation you will need authorisation and the rules in Part I and the training and competence rules (see Chapter 4) will apply. You can choose to comply with the client money rules for your reinsurance business if you wish.

Do not forget that this Guide is only a tool to help you navigate and understand the Handbook and to find the rules that are relevant to your firm. It is not a substitute for the rules themselves and is not a comprehensive statement of your firm's obligations under our rules. You should use it to help guide you through the most relevant aspects of our regulatory regime.

This Guide is not formal guidance and does not have the status of guidance in the Handbook. You cannot use this Guide to counter a charge of breaking our rules. In the event of any conflict between this Guide and the Handbook, the Handbook takes precedence.

This Guide is current as at 31 March 2004. This Guide does not remove the need for firms to keep up to date with regulatory developments and to consider the potential impact on business of proposed changes. We will regularly update this Guide but we will not update it each time the Handbook changes.