Related provisions for IPRU-INV 13.1.16

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GENPRU 3.1.3AGRP
6If a mixed financial holding company is subject to equivalent provisions under this Chapter and under UK prudential sectoral legislation10 in relation to the insurance sector10and the FCA is the coordinator, the FCA may, on application by the firm10, disapply such provisions of the UK prudential sectoral legislation10 with regard to that undertaking which are considered by the FCA as equivalent to those applying to the firm under GENPRU 3.1.[Note: article 120(2) of CRD]
GENPRU 3.1.7RRP
For the purpose of the definition of financial conglomerate, there are two financial sectors as follows:(1) the banking sector and the investment services sector, taken together; and(2) the insurance sector.
GENPRU 3.1.8RRP
(1) This rule applies for the purpose of the definition of financial conglomerate and the financial conglomerate definition decision tree.(1A) In determining the investment services sector for the purpose of identifying a financial conglomerate in the boxes entitled Threshold Test 1, Threshold Test 2 and Threshold Test 3 in the financial conglomerate definition decision tree, any investment firm that does not fall within the definition of article 4(1)(2) of the UK CRR9 is excluded.
GENPRU 3.1.39RRP
(1) 10This rule deals with the inclusion of an asset management company or an alternative investment fund manager5 that is a member of a financial conglomerate in the scope of regulation of financial conglomerates.[Note: Articles 30 and 30a of the Financial Groups Directive]1055555(2) An asset management company or an alternative investment fund manager5 is in the overall financial sector and is a regulated entity for the purpose of:(a) 5GENPRU 3.1.29 R5 to GENPRU 3.1.36 R;(b)
SUP App 3.3.2GRP
The Treaty provides the framework for the provision of banking, insurance business, investment business, UCITS management services and insurance mediation1, while the Single Market Directives clarify the rights and freedoms within that framework.1
SUP App 3.3.11GRP
There are, however, general derogations from the internal market provisions under article 3(3) of the E-Commerce Directive. The derogations include consumer contracts, the permissibility of unsolicited e-mail and certain insurance services (both life and non-life). Where these derogations apply, the EEA States in which the recipients of the service are based may continue to be able to impose their own requirements.
SUP App 3.3.13GRP
1The Single Market Directives require credit institutions, insurance undertakings (other than reinsurance undertakings)5, MiFID investment firms3, AIFMs, 7UCITS management companies,8insurance intermediaries and MCD credit intermediaries8 to make a notification to the Home State before establishing a branch or providing cross border services.SUP 13.5 (Notices of intention) sets out the notification requirements for a firm seeking to establish a branch or provide cross border services.
ICOBS 4.1.2RRP
In good time before4 the conclusion of an initial contract of insurance and, if necessary, on its amendment or renewal :4(1) a firm must provide the customer with at least the following information:4(a) its identity, address and whether it is an insurance intermediary or an insurance undertaking;4(b) whether it provides a personal recommendation about the insurance products offered;4(c) the procedures allowing customers and other interested parties to register complaints about
ICOBS 4.1.6RRP
(1) Where an insurance intermediary proposes or advises on a contract of insurance then in good time before4 the conclusion of an initial contract of insurance (other than a connected travel insurance contract) and, if necessary, on its amendment or renewal an insurance intermediary4 must provide the customer with at least information on whether the firm4:2(a) gives a personal recommendation4, on the basis of a fair and personal4 analysis; or(b) is under a contractual obligation
ICOBS 4.1.8GRP
(1) One way a firm may give advice on a fair analysis basis is by using ‘panels’ of insurance undertakings which are sufficient to enable the firm to give advice on a fair analysis basis and are reviewed regularly. (2) A firm which provides a service based on a fair analysis of the market (or from a sector of the market) should ensure that its analysis of the market and the available contracts is kept adequately up-to-date. For example, a firm should update its selection of contracts
BIPRU 3.4.60RRP
(1) In the exercise of its judgement for the purposes of BIPRU 3.4.56 R to BIPRU 3.4.58 R, a firm may be satisfied only if the conditions in (2) to (6) are met.(2) The value of the property does not materially depend upon the credit quality of the obligor. This requirement does not preclude situations where purely macroeconomic factors affect both the value of the property and the performance of the borrower.(3) The risk of the borrower does not materially depend upon the performance
BIPRU 3.4.73RRP
The requirements about insurance referred to in BIPRU 3.4.60 R (4)(d) are that the firm must have procedures to monitor that the property taken as protection is adequately insured against damage.[Note: BCD Annex VIII Part 2 point 8(d)]
BIPRU 3.4.74GRP
For the purposes of BIPRU 3.4.73 R a firm should, as a minimum, ensure that it is a requirement of each loan that the property taken as collateral must have adequate buildings insurance at all times, which should be reviewed when any new loan is extended against the property.
BIPRU 3.4.75GRP
A firm may deal with the risk that insurance on properties taken as protection may be inadequate by taking out insurance at the level of the portfolio.
IPRU-INV 13.1.5RRP
A firm must take out and maintain at all times professional indemnity insurance that is at least equal to the requirements in this section from: (1) an insurance undertaking which is authorised to transact professional indemnity insurance in the UK6(2) a person of equivalent status in: (a) a Zone A country; (b) the Channel Islands, Gibraltar, Bermuda or the Isle of Man. [Note: articles 10(4) and 10(5) of the IDD4
IPRU-INV 13.1.17GRP
The cover provided by the policy should be wide enough to include the liability of the firm, its appointed representatives, its tied agents, employees and its agents for breaches under the regulatory systems or civil law. If the firm operates outside the United Kingdom then the policy should cover other regulatory requirements imposed under the laws of other countries in which the firm operates.
CASS 5.3.2RRP
A firm (other than a firm acting in accordance with CASS 5.4) receives and holds client money as trustee (or in Scotland as agent) on the following terms:(1) for the purposes of and on the terms of CASS 5.3, CASS 5.5 and the client money (insurance) distribution rules;(2) subject to (4),1 for the clients (other than clients which are insurance undertakings when acting as such)1 for whom that money is held, according to their respective interests in it;(3) after all valid claims
CASS 5.3.3GRP
(1) A firm which holds client money can discharge its obligation to ensure adequate protection for its clients in respect of such money by complying with CASS 5.3 which provides for such money to be held by the firm on the terms of a trust imposed by the rules.(2) The trust imposed by CASS 5.3 is limited to a trust in respect of client money which a firm receives and holds. The consequential and supplementary requirements in CASS 5.5 are designed to secure the proper segregation
ICOBS 5.3.2GRP
1(1) 1In taking reasonable care to ensure the suitability of advice on a payment protection contract or a pure protection contract a firm should:(a) 1establish the customer's demands and needs by2 using information readily available2 to the firm and by obtaining further relevant information from the customer, including details of existing insurance cover; it need not consider alternatives to policies2 nor customer needs that are not relevant to the type of policy2 in which the
ICOBS 5.3.2ARRP
1In taking reasonable care to ensure the suitability of advice on a policy included in a packaged bank account, a firm must:(1) establish the customer's demands and needs by using information readily available to the firm and by obtaining further relevant information from the customer, including details of existing insurance cover; it need not consider alternatives to policies nor customer needs that are not relevant to the type of policy in which the customer is interested;(2)
DISP 1.10B.8GRP
When completing the return, the respondent should take into account the following matters.(1) If a complaint could fall into more than one category, the complaint should be recorded in the category which the respondent considers to form the main part of the complaint.(2) Under DISP 1.10B.7D(2)(a), a respondent should report information relating to all complaints which are closed and upheld within the relevant reporting period, including those resolved under DISP 1.5 (Complaints
GENPRU 3.2.5GRP
If the supervision of a third-country group by a third-country competent authority does not meet the equivalence test referred to in GENPRU 3.2.3 G, the FCA5 may, rather than take the measures described in GENPRU 3.2.4 G, apply, by analogy, the provisions concerning supplementary supervision in GENPRU 35 or, as applicable, consolidated supervision under the applicable UK prudential sectoral legislation, to the UK regulated entities5 in the banking sector, investment services sectorand
GENPRU 3.2.9RRP
If the Part 4A permission of a firm contains a requirement obliging it to comply with this rule with respect to a third-country banking and investment group of which it is a member, it must comply, with respect to that third-country banking and investment group, with the rules in Part 2 of GENPRU 3 Annex 2, as adjusted by Part 3 of that annex.
ICOBS 5.1.3CRRP
(1) 32Throughout the term of a policy included in a packaged bank account, a firm must provide the customer with an eligibility statement, in writing,3 on an annual basis. This statement must set out any qualifying requirements to claim each of the benefits under the policy and recommend that the customer reviews his circumstances and whether he meets these requirements.(2) 3Where a customer has reached an age limit on claiming benefits under a travel insurance policy included
ICOBS 5.1.4GRP
A firm should bear in mind the restriction on rejecting claims (ICOBS 8.1.1R (3)). Ways of ensuring a customer knows what he must disclose include:4(1) explaining to a commercial customer4 the duty to disclose all circumstances material to a policy, what needs to be disclosed, and the consequences of any failure to make such a disclosure; 4(2) ensuring that the commercial customer4 is asked clear questions about any matter material to the insurance undertaking;444(3) explaining
CONC App 1.1.3RRP
(1) Any calculation under this section shall be made on the following assumptions(a) the assumption that the borrower will not be entitled to any income tax relief relating to the transaction other than relief under section 19 of the Income and Corporation Taxes Act 1970 and Schedule 4 to the Finance Act 1976 (which afford relief in respect of premiums under certain policies of insurance) without any deduction under section 21 of the said Act of 1970;(b) the assumption that no
CONC App 1.1.5RRP
Except as provided in CONC App 1.1.6 R, the amounts of the following charges are included in the total charge for credit in relation to a credit agreement:(a) the total of the interest on the credit which may be provided under the credit agreement;(b) other charges at any time payable under the transaction by or on behalf of the borrower or a relative of his whether to the lender or any other person; and (c) a premium under a contract of insurance, payable under the transaction
CONC App 1.1.6RRP
(1) The amounts of the following items are not included in the total charge for credit in relation to a credit agreement:(a) any charge payable under the transaction to the lender upon failure by the borrower or a relative of his to do or to refrain from doing anything which he is required to do or to refrain from doing, as the case may be;(b) any charge(i) which is payable by the lender to any person upon failure by the borrower or a relative of his to do or to refrain from doing
ICOBS 8.4.4RRP
(1) A firm carrying out contracts of insurance, or a managing agent managing insurance business, including in either case business accepted under reinsurance to close, which includes United Kingdom commercial lines employers' liability insurance, must:(a) produce an employers’ liability register complying with the requirements in (2) and ICOBS 8 Annex 1;(b) [deleted]5(c) [deleted]5(1A) [deleted]5(2) For the purposes of (1)(a) the employers’ liability register is required to:(a)
ICOBS 8.4.5GRP
(1) For the purposes of ICOBS 8.4.4R (2)(c) and ICOBS 8.4.4R (2)(d), a firm may put in place appropriate screening on its employers’ liability register to monitor:(a) requests for information and searches to ensure that they are being made for a legitimate purpose by persons falling into one of the categories in ICOBS 8.4.4R (2)(c); and(b) requests from tracing offices to ensure that the information is necessary, and will only be used by the tracing office, for the purposes of
ICOBS 8.4.13RRP
The transferor in an insurance business transfer scheme must provide the transferee with the information and documents the transferor holds in compliance with ICOBS 8.4 in respect of the insurance business transferred.
PERG 5.4.6GRP
Some typical examples of where the business test is unlikely to be satisfied, assuming that there is no direct financial benefit to the arranger, include:(1) arrangements which are carried out by a person for their own benefit,1 or for members of the person’s1 family;(2) where employers provide insurance benefits for staff; and(3) where affinity groups or clubs set up insurance benefits for members.
PERG 5.4.8GRP

Table: Carrying on insurance distribution1 activities 'for remuneration' and 'by way of business'

Carrying on insurance distribution1 activities 'for remuneration' and 'by way of business'

'For remuneration'

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 P’s carrying on insurance distribution activities1.

P receives direct remuneration specifically identified as being a reward for P’s carrying on insurance distribution activities1.

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 distribution activities1 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 P’s1 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 distribution activities1 but where no particular part of the fees is attributable to insurance distribution activities1. This could include where insurance distribution activities1 are likely to:

  • play a material part in the success of P's other business activities or in P's ability to make a profit from them; or
  • provide P with a materially increased opportunity to provide other goods or services; or
  • be a major selling point for P's other business activities; or
  • be essential for P to provide other goods or services.

P charges 1customers a greater amount for other goods or services than would be the case if P were not also carrying on insurance distribution activities1 for those customers and this:

  • is explicitly or implicitly agreed between P and the insurer/broker or P's customer; and
  • has the potential to go beyond mere cost recovery.

Recovery of costs

P receives no benefits of any kind (direct or indirect) in respect of his insurance distribution activities1 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 distribution activities1 which go beyond the reimbursement of his actual costs incurred in carrying on the activity.

'By way of business'

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 him or herself1 out as providing a professional service that includes insurance distribution activities1 ( ‘professional’ meaning ‘not the services of a layman’1).

P holds him or herself1 out as providing a professional service that includes insurance distribution activities1.

Relevance to other activities/ business

Insurance distribution activities1:

  • have no relevance to P‘s other activities; or
  • have some relevance but could easily be ceased without causing P any difficulty in carrying on their1main activities; or
  • would be unlikely to result in a material reduction in income from P‘s main activities if ceased.1

Insurance distribution activities1:

  • are essential to P in carrying on their1main activities; or
  • would cause a material disruption to P carrying on their1main activities if ceased; or
  • would be likely to reduce P‘s income by a material amount.

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 P’s1 main activities if they did not include insurance distribution activities1.

P receives a direct or indirect pecuniary or economic benefit from carrying on insurance distribution activities1 – 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 P’s1 main activities if they did not include insurance distribution activities1.
BIPRU 5.5.6RRP
Where it is not possible for a firm to meet the condition set out in BIPRU 5.5.5 R (7), because the insurance relationship ends before the loan relationship expires, the firm must ensure that the amount deriving from the insurance contract serves the firm as security until the end of the duration of the credit agreement.[Note: BCD Annex VIII Part 2 point 13 (part)]
BIPRU 5.5.7RRP
1(1) 1Where the conditions set out in BIPRU 5.5.5 R are satisfied, the portion of the exposure collateralised by the current surrender value of credit protection falling within the terms of BIPRU 5.5.4 R must be either:(a) 1subject to the risk weights specified in (3) where the exposure is subject to the standardised approach to credit risk; or(b) 1assigned an LGD of 40% where the exposure is subject to the IRB approach but not subject to the firm's own estimates of LGD.(2) 1In
CREDS 3A.1.2GRP
The purpose of this chapter is to provide conduct rules and guidance on credit unions’ holding of shares and deposits, joint accounts, borrowings and insurance cover.
PERG 6.5.4GRP
The FCA will apply the following principles of construction to determine whether a contract is a contract of insurance.(1) In applying the description in PERG 6.3.4 G, more weight attaches to the substance of the contract, than to the form of the contract. The form of the contract is relevant (see PERG 6.6.8 G (3) and (4)) but not decisive of whether a contract is a contract of insurance: Fuji Finance Inc. v. Aetna Life Insurance Co. Ltd [1997] Ch. 173 (C.A.).(2) In particular,
IFPRU 4.15.1GRP
For purposes of repurchase transactions and securities lending or borrowing transactions, the FCA does not consider that there are any core market participants apart from those entities listed in article 227(3) of the UK CRR1.
MIPRU 1.1.1GRP
2This sourcebook applies to a firm with Part 4A permission to carry on:(1) insurance distribution activity3;(2) home finance mediation activity;11(3) home financing;111(4) home finance administration;1 and11(5) insurance business;as specified in the beginning of each of the remaining chapters.