PROF 7.1 Register of persons carrying on insurance mediation activity

Background

The FCA's obligation to maintain a record

PROF 7.1.2G

Article 93 of the amended Regulated Activities Order requires the FCA to maintain an up-to-date record of every unauthorised person, whether an appointed representative or an exempt professional firm that carries on, or is proposing to carry on, insurance mediation activity and to whom the general prohibition does not apply in relation to the carrying on of such an activity. In relation to exempt professional firms the general prohibition does not apply by virtue of section 327 of the Act.

PROF 7.1.3G

The FCA is not to include an exempt professional firm in the register relating to unauthorised persons if:

  1. (1)

    under a direction given by the FCA under section 328(1) of the Act, section 327(1) of the Act does not apply in relation to the carrying on by it of insurance mediation activity; or

  2. (2)

    the FCA has made an order under section 329(2) of the Act disapplying section 327(1) of the Act in relation to the carrying on by the exempt professional firm of insurance mediation activity.

Provision of information to the FCA

PROF 7.1.4G

Article 94 of the Regulated Activities Order obliges a designated professional body to provide the FCA with the information it needs to maintain the record referred to in PROF 7.1.2 G of every unauthorised person that carries on, or proposes to carry on, insurance mediation activity and keep it up to date. This information needs to include the details referred to in PROF 7.1.7 G. This is the responsibility of the designated professional body and not each exempt professional firm.

Financial Services sand Markets Act 2000 (Professions) (Non-Exempt) Activities Order 2001 (SI 2001/1227)

PROF 7.1.5G
  1. (1)

    The attention of exempt professional firms is drawn to the significance of The Financial Services and Markets Act 2000 (Professions) (Non-Exempt) Activities Order 2001 (SI 2001/1227), as amended by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2003 (SI 2003/1476). The effect of these amendments is that exempt professional firms may not carry on certain regulated activities which relate to a contract of insurance in reliance on the Part XX exemption unless the exempt professional firm is included in the record of unauthorised persons carrying on insurance mediation activity maintained by the FCA under article 93 of the Regulated Activities Order.

  2. (2)

    Each exempt professional firm carrying on, or proposing to carry on, insurance mediation activity should ensure that at all material times the name of the firm and the requisite details are included in the record maintained by the FCA. Any such exempt professional firm carrying on, or proposing to carry on, insurance mediation activity whose name does not appear in the record maintained by the FCA is likely to be breaching the general prohibition which is a criminal offence under section 23 of the Act.

Financial Services Register

PROF 7.1.6G

In order to comply with its obligations to maintain a record of unauthorised persons that carry on, or are proposing to carry on, insurance mediation activity, the FCA has established an appropriate record which forms part of the record maintained by the FCA under section 347 of the Act. The record maintained by the FCA under section 347 of the Act is known as the Financial Services Register. The Financial Services Register therefore contains a record of each authorised and unauthorised person that carries on, or proposes to carry on, insurance mediation activity.

PROF 7.1.7G

The information to be included on the record in relation to exempt professional firms will, as required by the Insurance Mediation Directive2, include details of:

2
  1. (1)

    the name and address of each exempt professional firm that carries on, or is proposing to carry on, insurance mediation activity;

  2. (2)

    where the exempt professional firm is not an individual, the names of the individuals within the management of the exempt professional firm who are responsible for the insurance mediation activity; and

  3. (3)

    each EEA State in which the exempt professional firm under an EEA right derived from the Insurance Mediation Directive2:

    2
    1. (a)

      has established a branch; or

    2. (b)

      is providing cross border services.

FCA Website

PROF 7.1.8G

The Financial Services Register can be accessed through the FCA website under the link www.fca.org.uk/firms/financial-services-register.