Insurance intermediaries

In an address to Parliament on 9 November 2020, the Chancellor confirmed that the government will “…. make sure UK financial services exports to the EU remain competitive” and “will treat those exports the same as we do for other countries.  This means UK firms will be able to reclaim input VAT on financial services…

The critical moment is approaching. From 1 January 2021, only an EU regulated insurance carrier or intermediary may undertake EU insurance work. It is perhaps surprising that a number of companies are not yet ready for the effects of Brexit. In the Lloyd’s market, from 1 October 2020, Lloyd’s Brussels will only accept new business…

Many insurance brokers are likely to be affected by new rules for employment status workers hired via an intermediary. The Government is to review these changes, which may delay their scheduled introduction in April. Whichever way, Chris Riley explains how to prepare. Consultants who provide advice to a business are a feature of all sectors.…

Since its introduction in October 2018, the Insurance Distribution Directive (IDD) is proving more difficult to implement that expected. David Allison of Compliance Management Services reports on the sticking points. After an unprecedented delay of eight months from its original effective date, IDD finally came into force on 1 October 2018. Nearly a year-and-a half…

In June 2019 the FCA published its consultation paper CP19/20 ‘Assessing Adequate Financial Resources’. It explains the importance of financial resources In helping firms to minimise harm and risk, how to assess these internally and what to expect from the FCA’s assessment. Paul Goldwin reports. The FCA has emphasised that this is not merely an…

Even assuming an EU:UK Trade Agreement comes into force on 31 December 2020, the insurance sector is unlikely to benefit. Howard Jones explains why setting up a NewBro is the best solution to keep control of corporation tax and VAT. Britain left the EU on 31 January and a transitional period is operating until the…

The Senior Managers & Certification Regime (SM&CR) came into effect on 9 December and affects all insurance intermediaries. Samiha Shaikh, Senior Manager at PKF Littlejohn provides a checklist that will keep you in line with the specifications. The document’s key objectives are to define and confirm accountability for senior people in firms (clarifying their responsibilities),…

It’s important to execute a non-statutory trust (NST) deed correctly to ensure client money is properly protected. Insurance lawyer Carol-Ann Burton provides some tips. UK regulations allow a broker to hold client money in a client bank account, which can be protected by an NST or a statutory trust. The main purpose of the trust…

By 9 December this year, all FCA firms under SM&CR must submit a SoR (Statement of Responsibilities) and Enhanced firms must also produce a Responsibilities Map. Samiha Shaikh offers a guide to priorities. Following on from our previous articles on the SM&CR, detailing the outcomes from the Final Policy statements by FCA for solo regulated…

In Spring last year, Broking Business announced the FCA’s Market Study on the wholesale insurance sector. Its key aim was to assess whether competition was working effectively in the market. Paul Goldwin reports on what the results mean for brokers. The study focused on three main areas: market power, conflicts of interest and broker conduct.…

The continuing trend for broker acquisitions has made client money due diligence all the more important. Bethanie Crayston provides advice for vendors and buyers. We are still seeing a strong appetite for insurance intermediary acquisitions involving firms of all sizes across the market. In our experience, certainly in smaller firms, CASS 5 sometimes gets overlooked…

Cloud services are becoming more and more popular among brokers. But in spite of the potential benefits, they can also bring unexpected hazards. Ian Singer focuses on one of the key risks. There are good reasons why the Cloud is becoming increasingly important in the IT landscape for brokers of all shapes and sizes: The…