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Status: You are viewing the version of the handbook as on 2005-06-30.

AUTH App 5.5 The regulated activities: dealing in contracts as agent

AUTH App 5.5.1G

Article 21 of the Regulated Activities Order (Dealing in investments as agent) makes dealing in contracts of insurance as agent a regulated activity. The activity is defined in terms of buying, selling, subscribing for or underwriting contracts as agent, that is, on behalf of another. Examples include:

  1. (1)

    where an intermediary, by accepting on the insurance undertaking's behalf to provide the insurance, commits an insurance undertaking to provide insurance for a prospective policyholder; or

  2. (2)

    where the intermediary agrees, on behalf of a prospective policyholder, to buy an insurance policy.1

AUTH App 5.5.2G

Intermediaries with delegated authority to bind insurance undertakings are likely to be dealing in investments as agent. It should be noted, in particular, that this is a regulated activity:

  1. (1)

    whether or not any advice is given (see AUTH App 5.8 (The regulated activities: advising on contracts of insurance); and

  2. (2)

    whether or not the intermediary deals through an authorised person (for example, where he instructs another agent who is an authorised person to enter into a contract of insurance on his client's behalf).


AUTH App 5.5.3G

There are also certain exclusions which are relevant to whether a person is carrying on the activity of dealing in investments as agent (see AUTH App 5.11 (Other aspects of exclusions)).1