The purpose of this chapter is to implement article 3.6 of the Insurance Mediation Directive in relation to insurance undertakings. The provisions of this chapter have been extended to home finance providers1 in relation to insurance mediation activity, and to insurance undertakings and home finance providers in relation to home finance mediation activity1, to ensure that firms using these services are treated in the same way and to ensure that clients have the same protection. To avoid the loss of protection where an intermediary itself uses the services of an unauthorised person, this chapter also ensures that each person in the chain of those providing services is authorised.1 1 1
3The appropriate regulator regards a firm as 'using' the services of, in particular, its immediate counterparty (typically the intermediary that passed the business to the firm) and of all other persons who have been granted the right or authority directly by the firm to effect a contract of insurance or enter into a home finance transaction.
- (1) 3
- (2) 3
- (3) 3
- (4) 32
- (5) 3
- (6) 13
A firm should:
before using the services of the intermediary, check:
the Financial Services Register; or
for the status of the
use the services of that person only if the relevant register indicates that the person is registered for that purpose.
Checking the Financial Services Register before using the services of the intermediary and using the services of that person only if the Financial Services Register indicates that the person is registered for that purpose may be relied on as tending to establish that:
In relation to insurance mediation carried on by an EEA firm, checking the register of the firm'sHome 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