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MIPRU 5.1 Application and purpose

Application

MIPRU 5.1.1 R RP

2This chapter applies to a firm with a Part 4A permission to carry on:

  1. (1)

    insurance business; or

  2. (2)

    home financing;1

    11
  3. (3)

    and which uses, or proposes to use, the services of another person consisting of:

    1. (a)

      insurance mediation; or

    2. (b)

      insurance mediation activity; or

    3. (c)

      home finance mediation activity.1

      1

Purpose

MIPRU 5.1.2 G RP

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
MIPRU 5.1.3 G

This chapter supports the more general duties in Principles 2 and 3, and the relevant rule in the Senior Management Arrangements, Systems and Controls sourcebook (see SYSC 3.1.1 R and SYSC 4.1.1 R).3

MIPRU 5.2 Use of intermediaries

MIPRU 5.2.1 R RP

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 MIPRU 5.2.2 R is 3satisfied.

3

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

2
MIPRU 5.2.1A G RP

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.

MIPRU 5.2.2 R RP

For the purposes of MIPRU 5.2.1 R, the person, in relation to the activity must:3

3
  1. (1)

    have3permission; or

    3
  2. (2)

    be3 an exempt person; or

    3
  3. (3)

    be3 an exempt professional firm; or

    3
  4. (4)

    be3 registered in another EEA State for the purposes of the Insurance Mediation Directive2; or

    32
  5. (5)

    in relation to insurance mediation activity, not be 3carrying this activity on in the EEA; or

    3
  6. (6)

    in relation to home finance mediation activity1, not be 3carrying this activity on in the United Kingdom.

    13

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

2
MIPRU 5.2.3 E RP
  1. (1)

    A firm should:

    1. (a)

      before using the services of the intermediary, check:

      1. (i)

        the Financial Services 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 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:

      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'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
MIPRU 5.2.4 R

[deleted]3

MIPRU 5.2.5 R

[deleted]3

MIPRU 5.2.6 G RP

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