ICOB 1 Annex 2 Summary of Handbook provisions for insurance intermediaries

1

This table belongs to ICOB 1.5.1 G.

2

This table sets out the provisions in the Handbook that apply to firms which are insurance intermediaries where they:

(1)

carry on insurance mediation activities in relation to a non-investment insurance contract; or

(2)

communicate or approve a non-investment financial promotion.

3

It also sets out the provisions in the Handbook that apply to approved persons.

4

For convenience, the former activity is referred to in the table as (1) and the latter as (2).

High Level Standards

General provisions, GEN

Applies (at least in part) in respect of (1) and (2).

Principles for Businesses, PRIN

Threshold Conditions, COND

Statements of Principle and Code of Practice for Approved Persons, APER

Applies to every approved person who performs a controlled function under an arrangement entered into by an insurance intermediary when doing either (1) or (2).

The Fit and Proper test for Approved Persons, FIT

Applies to an insurance intermediary in respect of any application that it makes for the approval of a person to perform a controlled function, and in respect of the continuing approval of that person.

Senior Management Arrangements, Systems and Controls, SYSC

Applies in respect of (1) and (2), except SYSC 3.2.6A R to SYSC 3.2.6J G4and SYSC 4 - SYSC 105.

Business Standards

Interim Prudential sourcebooks

IPRU(BANK)

Applies in respect of (1) where the insurance intermediary is also a bank.

IPRU(BSOC)

Applies in respect of (1) where the insurance intermediary is also a building society.

IPRU(FSOC)

Applies in respect of (1) where the insurance intermediary is also a friendly society.

IPRU(INS)

Applies in respect of (1) where the insurance intermediary is also an insurer.

IPRU(INV)

Applies in respect of (1) where the insurance intermediary is also an investment firm (other than a BIPRU investment firm)6.

Prudential sourcebook

6GENPRU

Applies in respect of (1) where the insurance intermediary is also a BIPRU firm or insurer.

6BIPRU

Applies in respect of (1) where the insurance intermediary is also a BIPRU firm.

MIPRU 1 - MIPRU 46

Applies in respect of (1).

INSPRU6

Applies in respect of (1) where the insurance intermediary is also an insurer.2 Some requirements are relevant to an insurance intermediary doing (1) or (2) where it is also an underwriting agent.7

MIPRU 56

Applies in respect of (1) where the insurance intermediary is also an insurer or a mortgage lender.2

Market conduct, MAR

Does not apply to a firm when doing either (1) or (2). However, certain chapters of MAR will apply if:

(a) the insurance intermediary also engages in behaviour in relation to qualifying investments traded on prescribed markets - then MAR 1 applies;

(b) the insurance intermediary undertakes or is concerned with offers of securities that may involve price stabilising activity - then MAR 2 applies;

(c) the insurance intermediary carries on inter-professional business - then MAR 3 applies; (d) the insurance intermediary carries on designated investment business - then MAR 4 applies.

Conduct of Business sourcebook, COB

Does not apply to an insurance intermediary when doing (1) or (2) unless it opts to provide key features instead of a policy summary (see ICOB 5.5.4 R). However, COB may apply to an insurance intermediary if it also carries on any other regulated activity or communicates or approves a financial promotion not relating to non-investment insurance contracts or qualifying credit.

Mortgages: Conduct of Business sourcebook, MCOB

Does not apply to an insurance intermediary when doing (1) or (2). However, MCOB may apply to an insurance intermediary if it is also a mortgage lender or carries on mortgage mediation activities.

Training and Competence sourcebook, TC

TC 1 applies when a firm is doing (1) or (2).TC 2 applies only in circumstances where an insurance intermediary has employees advising on non-investment insurance contracts with or for a retail customer as listed in TC 2.1.4 R.4

Client Assets sourcebook, CASS

CASS 5 applies when a firm is doing (1) if it receives and holds money from or on behalf of a client, or receives and holds money as agent for an insurance undertaking.

Regulatory processes

Authorisation manual, AUTH

Applies to:

(1) a person, other than an authorised person, considering carrying on the regulated activities that include insurance mediation activities in the United Kingdom, and who requires guidance on whether authorisation is required and, if so, how to apply to the FSA for Part IV permission;

(2) an EEA firm or a Treaty firm that wishes to establish a branch or provide cross border services into the United Kingdom in relation to insurance mediation activities or wishes to apply for a top-up permission that includes insurance mediation activities;

(3) a person wishing to obtain approval for persons to perform controlled functions in relation to insurance mediation activities; and

(4) a person wishing to understand how the FSA will use its powers in relation to authorisation to determine applications.

Supervision manual, SUP

The following chapters of SUP apply to an insurance intermediary when doing (1) or (2): 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 15, 16, 18 (but only if the insurance intermediary is an insurer), 20.

The following chapters of SUP do not apply to an insurance intermediary when doing (1) or (2): 4, 13, 14, 17, 18 (unless the insurance intermediary is an insurer), 19.9

Decision, Procedure and Penalties Manual, DEPP9

Applies to an insurance intermediary when doing (1) or (2).

Redress

Dispute resolution: Complaints, DISP

Applies to an insurance intermediary when doing (1) or (2).

Compensation, COMP

An insurance intermediary, as a participant firm for the purposes of COMP in respect of insurance mediation activities relating to non-investment insurance contracts, is liable to contribute to a levy raised by the firm for the purposes of paying compensation.

Specialist sourcebooks

Credit Unions, CRED

Applies to an insurance intermediary doing (1) or (2) where it is also a credit union.

Electronic Commerce Directive, ECO

Applies to an insurance intermediary doing (1) or (2).

Electronic money, ELM

Does not apply to an insurance intermediary doing (1).

May apply to an insurance intermediary doing (2).

Professional firms, PROF

Applies to an insurance intermediary doing (1) or (2) where it is also a professional firm.7

[Deleted]

[Deleted]

Collective Investment Schemes sourcebooks, COLL and CIS1

Apply to an insurance intermediary doing (1) or (2) where it is also an operator or a depositary of an AUT, ICVC or certain other collective investment schemes.1

Recognised Investment Exchanges and Recognised Clearing Houses, REC

Does not apply

Listing, Prospectus and Disclosure3

Listing Rules, LR3

May apply if the firm is applying for listing in the United Kingdom, is a listed issuer in the United Kingdom, is a sponsor or is applying for approval as a sponsor.3

Prospectus Rules, PR3

May apply if the firm makes an offer of transferable securities to the public in the United Kingdom or is seeking the admission to trading of transferable securities on a regulated market situated or operating in the United Kingdom.3

Disclosure Rules and Transparency Rules, DTR3

May apply if the firm is an issuer, any class of whose financial instruments have been admitted to trading on a regulated market, or are the subject of an application for admission to trading on a regulated market, other than issuers who have not requested or approved admission of their financial instruments to trading on a regulated market.3