SRA approach to European Insurance Distribution Directive approved

SRA approach to European Insurance Distribution Directive approved

The SRA have had their approach to dealing with the new European Insurance Distribution Directive approved by the Financial Conduct Authority (FCA) and Legal Services Board (LSB).

The Directive means that firms carrying on insurance distribution activities will need to change the way they work. Replacing the Insurance Mediation Directive, the new Directive aims to strengthen protections in place for clients, such as improving the information they receive.

Guidance on the new directive, which comes into effect from 1 October, will be made available by the SRA.

Paul Philip, SRA Chief Executive, said:

“Our changes meet the requirements of the new Directive without putting unnecessary burdens on firms. For example, in many areas our Code of Conduct already covers what is needed.

 

It’s important that firms make sure they are up to date with the revised requirements, so that they can provide a proper service to their clients”

Some of the key enhancements brought in by the directive and that firms will need to familiarise themselves with are:

  • Professional and organisational requirements,
  • Conduct of business requirements,
  • Information requirements,
  • Demands and needs of their client.

Firms working in personal injury, conveyancing or probate are most likely to be affected. For example, they might arrange after-the-event insurance in a personal injury matter or defective title insurance in a conveyance. There may be other insurance products that firms advise on or arrange for their clients in other areas of law.

All firms should therefore assess their own individual practices and make sure they are up to date and able to comply with the revised rules.

The SRA will be writing to a number of firms that have indicated that they carry on insurance mediation activities in their response to last year’s Financial Services Activities questionnaire.

In the meantime, the requirements of the directive can be found on the SRA website

Terms and Conditions | Site Map | Privacy and Cookies

Copyright © 2017 Richard Nelson LLP and Murdochs. All rights reserved.
The Lawyers Defence Group is operated by Richard Nelson LLP, a Limited Liability Partnership authorised and regulated by the Solicitors Regulation Authority and whose partnership number is OC357136 and Murdochs Solicitors, who are also authorised and regulated by the Solicitors Regulation Authority, and whose SRA number is 52683.
Please note that all advice, guidance, representation and assistance, legal or otherwise, is provided either by those firms or by appropriate referral to other suitably qualified persons. No advice, guidance, assistance, representation or other support is provided by or in the name of the Lawyers Defence Group.
For further details please refer to the terms and conditions for use of this web site and to the terms and conditions of the firms involved.
The professional rules governing our lawyers can be found at rules.sra.org.uk