The SRA have published our rules for dealing with the new Insurance Distribution Directive.
The Directive means that firms carrying on insurance distribution activities will need to change the way they work. Replacing the Insurance Mediation Directive, the new Directive aims to strengthen protections in place for clients, such as improving the information they receive.
Paul Philip, SRA Chief Executive, said: “Our changes meet the requirements of the new Directive without putting unnecessary burdens on firms. For example, in many areas our, Code of Conduct already covers what is needed.
“It’s important that firms make sure they are up to date with the revised requirements so that they can provide a proper service to their clients.”
Some of the key enhancements brought in by the directive and that firms will need to familiarise themselves with are:
- Professional and organisational requirements
- Conduct of business requirements
- Information requirements
- Demands and needs of their client
Firms working in personal injury, conveyancing or probate are most likely to be affected. For example, they might arrange after-the-event insurance in a personal injury matter or defective title insurance in a conveyance.
However, there might be other insurance products that firms advise on or arrange for their clients in other areas of law. All firms should therefore assess their own individual practices and make sure they are up to date and able to comply with the revised rules.
The rules can be found here:
Guidance on the new directive is also available here:
Where firms have an appointed insurance mediation officer the SRA will be updating their records to change this role to an insurance distribution officer.
As a designated Professional Body for financial services activities, the SRA have in place rules that govern the carrying on of financial services activities by exempt professional firms.