Related provisions for SYSC 10.1.8A
Table Territorial issues relating to overseas insurance intermediaries carrying on insurance mediation activities in or into the United Kingdom
Needs Part 4A permission |
Schedule 3 EEA passport rights available |
Overseas persons exclusion available |
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Registered EEA-based intermediary with UK branch (registered office or head office in another EEA State) |
No |
Yes |
No |
Registered EEA-based intermediary with no UK branch providing cross-border services |
No |
Yes |
Potentially available [see Note] |
Third country intermediary operating from branch in the UK |
Yes |
No |
No |
Third country intermediary providing services in (or into) the UK |
Yes unless overseas persons exclusion applies |
No |
Potentially available |
This does not, however, affect the firm'sauthorisation under Schedule 3 to the Act (see PERG 5.12.9 G to PERG 5.12.10 G (Passporting)). |
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3For EEA-based intermediaries this table assumes that the insurance mediation activities are within the scope of the Insurance Mediation Directive. |
Table: Carrying on insurance mediation activities 'for remuneration' and 'by way of business'
Carrying on insurance mediation activities 'for remuneration' and 'by way of business' |
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'For remuneration' |
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Factor |
Indicators that P does not carry on activities "for remuneration" |
Indicators that P does carry on activities "for remuneration" |
Direct remuneration, whether received from the customer or the insurer/broker (cash or benefits in kind such as tickets to the opera, a reduction in other insurance premiums, a remission of a debt or any other benefit capable of being measured in money's worth) |
P does not receive any direct remuneration specifically identified as a reward for his carrying on insurance mediation activities. |
P receives direct remuneration specifically identified as being a reward for his carrying on insurance mediation activities. |
Indirect remuneration (such as any form of economic benefit as may be explicitly or implicitly agreed between P and the insurer/broker or P's customer – including, for example, through the acceptance of P's terms and conditions or mutual recognition of the economic benefit that is likely to accrue to P). An indirect economic benefit can include expectation of making a profit of some kind as a result of carrying on insurance mediation activities as part of other services. |
P does not obtain any form of indirect remuneration through an economic benefit other than one which is not likely to have a material effect on P's ability to make a profit from his other activities. |
P obtains an economic benefit that: (a) is explicitly or implicitly agreed between P and the insurer/broker or P's customer; and (b) has the potential to go beyond mere cost recovery through fees or other benefits received for providing a package of services that includes insurance mediation activities but where no particular part of the fees is attributable to insurance mediation activities. This could include where insurance mediation activities are likely to:
P charges his customers a greater amount for other goods or services than would be the case if P were not also carrying on insurance mediation activities for those customers and this:
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Recovery of costs |
P receives no benefits of any kind (direct or indirect) in respect of his insurance mediation activities beyond the reimbursement of his actual costs incurred in carrying on the activity (including receipt by P of a sum equal to the insurance premium that P is to pass on to the insurer or broker). |
P receives benefits of any kind (direct or indirect) in respect of his insurance mediation activities which go beyond the reimbursement of his actual costs incurred in carrying on the activity. |
'By way of business' |
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Factor |
Indicators that P does not carry on activities "by way of business" |
Indicators that P does carry on activities "by way of business" |
Regularity/ frequency |
Involvement is one-off or infrequent (for instance, once or twice a year) provided that the transaction(s) is not of such size and importance that it is essential to the success of P's other business activities. Transactions do not result from formal arrangements (for instance, occasional involvement purely as a result of an unsolicited approach). |
Involvement is frequent (for instance, once a week). Involvement is infrequent but the transactions are of such size or importance that they are essential to the success of P's other business activities. P has formal arrangements which envisage transactions taking place on a regular basis over time (whether or not such transactions turn out in practice to be regular). |
Holding out |
P does not hold himself out as providing a professional service that includes insurance mediation activities (by professional is meant not the services of a layman). |
P holds himself out as providing a professional service that includes insurance mediation activities. |
Relevance to other activities/ business |
Insurance mediation activities:
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Insurance mediation activities:
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Commercial benefit |
P receives no direct or indirect pecuniary or economic benefit. P is a layman and acting in that capacity. P would not obtain materially less income from his main activities if they did not include |
P receives a direct or indirect pecuniary or economic benefit from carrying on insurance mediation activities – such as a fee, a benefit in kind or the likelihood of materially enhanced sales of other goods or services that P provides. P would obtain materially less income from his main activities if they did not include insurance mediation activities. |
This is a guide only and should not be used as a substitute for legal advice
in individual cases.
Table 3: Solvency II Directive activities7 7 |
Part II RAO Activities |
Part III RAO Investments |
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1. Non-life insurance activities |
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1. |
Taking up and carrying on direct non-life insurance business |
Article 10 |
Article 75 |
2. |
Classes 1 to 18 of non-life insurance business in Point A of Annex I to the Solvency II7 Directive 77 |
Corresponding paragraphs 1 to 18 of Schedule 1, Part I |
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2. Life insurance activities7 7 |
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1. |
Taking up and carrying on direct life insurance business |
Article 10 |
Article 75 |
2. |
Classes I to IX of direct life insurance business in Annex II to the Solvency II Directive7 7 |
Corresponding paragraphs I to IX of Schedule 1, Part II |
Insurance mediation activities able to be carried on by an appointed representative. This table belongs to PERG 5.13.3 G.
Type of contract of insurance |
Regulated activities an appointed representative can carry on |
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