NEWICOB takes effect

New Insurance Conduct of Business Rules came into effect on 6 January 2008 and firms now have six months – until 5 July 2008 – to comply with the new regime. Changes are mainly restricted to intermediaries of protection products including payment protection insurance, income protection, term assurance and critical illness, which will have to comply with additional rules set by the regulator. Other general insurance products, such as household and motor, will not be required to meet the new rules and moreover will be subject to a lighter regime, with the Financial Services Authority stripping back many of the rules to the minimum requirements of the Insurance Mediation Directive.