In June 2010 the Chancellor announced changes to the way that financial services will be regulated. The Financial Services Act 2012 comes into force on 1st April 2013. The Financial Services Authority will cease to exist and a new regulatory structure consisting of the Financial Policy Committee, the Prudential Regulation Authority and the Financial Conduct Authority will take its place. The Financial Conduct Authority will be the new conduct of business regulator.
Authorised bodies that carry out insurance mediation activities (exempt professional firm) need to be on the EPF register and provide clients with a written demands and needs statement. Firms are required by rule 3.3 of the Financial Services (Conduct of Business) Rules 2001 to provide a written statement to the client which will need to be amended to reflect these changes. The specific wording to use is as follows:
This firm is not authorised by the Financial Conduct Authority. However, we are included on the register maintained by the Financial Conduct Authority so that we can carry on insurance mediation activity, which is broadly the advising on, selling and administration of insurance contracts. This part of our business, including arrangements for complaints or redress if something goes wrong, is regulated by the Solicitors Regulation Authority. The register can be accessed via the Financial Conduct Authority website at www.fca.org.uk/register.
All COLPs should ensure that reference to the FSA in their client care documents, terms of business, demands and needs statement or on their website is amended. Also check your letterheads and promotional material before they are reprinted.