New rules on insurance distribution from 1 October 2018
The SRA has announced that its rules which were needed to comply with the Insurance Distribution Directive have been approved by the Financial Conduct Authority and the Legal Services Board.
The SRA Handbook was updated on 1 October 2018 to reflect the new financial services rules. The SRA has also confirmed that guidance has been published which should be read alongside the new rules: Law firms carrying on insurance distribution activities.
The Insurance Distribution Directive is a new European directive that has replaced the Insurance Mediation Directive. Firms carrying on insurance distribution activities need to change the way they work.
The directive is designed to ensure a level playing field across all those providing, facilitating and arranging insurance products. It also seeks to strengthen consumer protections for clients, such as improving the information they receive.
Firms involved in personal injury, conveyancing and 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. There may be other insurance products that firms advise on or arrange for their clients in other areas of law.
All firms should be assessing their own individual practices and make sure they are up to date and complying with the revised rules.
View the guidance on the SRA website.