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MIPRU 5.2 Use of intermediaries

MIPRU 5.2.1RRP

A firm must not use, or propose to use, the services of another person consisting of:

  1. (1)

    insurance mediation; or

  2. (2)

    insurance mediation activity; or

  3. (3)

    home finance mediation activity;1

    1

unless two conditions are satisfied.

[Note: Article 3(6) of the Insurance Mediation Directive2]

2
MIPRU 5.2.2RRP

The first condition is that the person, in relation to the activity:

  1. (1)

    has permission; or

  2. (2)

    is an exempt person; or

  3. (3)

    is an exempt professional firm; or

  4. (4)

    is registered in another EEA State for the purposes of the Insurance Mediation Directive2; or

    2
  5. (5)

    in relation to insurance mediation activity, is not carrying this activity on in the EEA; or

  6. (6)

    in relation to home finance mediation activity1, is not carrying this activity on in the United Kingdom.

    1

[Note: Article 3(6) of the Insurance Mediation Directive2]

2
MIPRU 5.2.3ERP
  1. (1)

    A firm should:

    1. (a)

      before using the services of the intermediary, check:

      1. (i)

        the FSA Register; or

      2. (ii)

        in relation to insurance mediation carried on by an EEA firm, the register of its Home State regulator;

      for the status of the

      person

      ; and

    2. (b)

      use the services of that person only if the relevant register indicates that the person is registered for that purpose.

  2. (2)
    1. (a)

      Checking the FSA Register before using the services of the intermediary and using the services of that person only if the FSA Register indicates that the person is registered for that purpose may be relied on as tending to establish that:

      1. (i)

        the person, in relation to the activity, has permission; or

      2. (ii)

        the person, in relation to insurance mediation activity, also is an exempt person or an authorised professional firm.

    2. (b)

      In relation to insurance mediation carried on by an EEA firm, checking the register of the firm's Home State regulator and using the services of the EEA firm only if the register indicates that the firm is registered for that purpose may be relied on as tending to establish that the firm is registered for the purposes of the Insurance Mediation Directive2.

      2
MIPRU 5.2.4R

The second condition is that the firm takes all reasonable steps to ensure that the person that it uses in relation to the activity, is not, directly or indirectly, carrying out the activity as a consequence of the activities of another person which:

  1. (1)

    contravene section 19 of the Act (The general prohibition); or

  2. (2)

    in the case of activities provided from an establishment in an EEA State, contravene the Insurance Mediation Directive2 registration requirements.

    2

[Note: Article 3(6) of the Insurance Mediation Directive2]

2
MIPRU 5.2.5R

In order to comply with the second condition, a firm may rely on a confirmation provided by the other person in writing if:

  1. (1)

    the confirmation is provided by a person that satisfies the first condition;

  2. (2)

    the firm checked that this is the case; and

  3. (3)

    the firm is not aware that the confirmation is inaccurate and has no grounds for reasonably being aware that the confirmation is inaccurate.

MIPRU 5.2.6GRP

The FSA Register can be accessed through the FSA website under the link www.fsa.gov.uk/register/home.do