Intermediaries

The new regulatory framework

The conjunction of two events – the adoption by the EC of the Insurance Mediation Directive, European Parliament and Council Directive 2002/92/EC, and the failure of the self-regulatory body, the General Insurance Standards Council, to persuade the UK competition authorities that it was permissible to require non-life intermediaries to join GISC as a condition of dealing with insurers – has led the Government to implement its default powers in the Financial Services and Markets Act 2000. As a result, a process beginning on 31 October 2004 and culminating on 14 January 2005 will see the introduction of comprehensive statutory regulation of general (non-life) intermediaries. The implementing statutory instruments – the Insurance Mediation Directive (Miscellaneous Amendments) Regulations 2003 (SI 2003 No 1473) and the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No 2) Order 2003 (SI 2003 No 1476) – have been implemented with commendable speed, allowing the industry well over a year to consider their implications.