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Insurance Broker Authorisation

Insurance Broker

Many consumers use an intermediary to help them when choosing and taking out insurance. The services provided by insurance brokers may be provided on both an advised and non-advised basis but will require authorisation from the Financial Conduct Authority (FCA) unless an exemption or exclusion applies.

Brokers that are authorised by the FCA then need to comply with specific rules when providing those services to ensure they maintain compliance.

As a firm that’s either considering becoming an insurance broker or already authorised as one, you should be aware of the FCA rules that apply. The rules on how you are expected to conduct your activity can largely be found in the FCA’s Insurance Conduct of Business Sourcebook (referred to as ‘ICOBS’). There are also additional FCA rules that apply to all firms, including the complaint handling rules and rules on the Senior Managers and Certification Regime (SM&CR).

You should also be aware of how the different permissions apply to enable insurance brokers to take different steps when providing their services to customers, such as by providing advice or not. Certain systems and controls should also be in place depending on a firm’s permissions to ensure that they do not breach the rules or operate outside of their permitted activities.

Insurance brokers seeking FCA authorisation require a coherent compliance monitoring framework and must be able to demonstrate that the business model is one that meets the FCA’s requirements. They should also be aware of specific requirements that must be satisfied to become authorised including the need for Professional Indemnity Insurance and a minimum capital resource requirement. Those in control or who will have management responsibilities within the firm must also be suitable and appropriate.

Appointed Representatives and Principal Firms

Once you are directly authorised by the FCA you can allow non-authorised firms to use your authorisation to conduct regulated activities under your supervision. Under this sort of arrangement, you would be known as the Principle Firm and they would be your Appointed Representatives.

How can Scott Robert help you?

Interested in becoming authorised by the FCA or maintaining compliance as an FCA authorised firm? Scott Robert can help, whether it is for FCA authorisation, or ongoing compliance needs.

FCA Authorisation

If you are looking to become authorised by the FCA, Scott Robert can help.

Each applicant who works with Scott Robert is assigned a dedicated Regulatory Adviser who will support you throughout your application, answering queries you may have relating to the application and providing you with guidance and support.

The process starts with a fact find between yourself and one of our Regulatory Advisors where we’ll get to know you and your business and how you intend to provide your services.

We will provide you with advice and guidance on how to comply with the FCA’s requirements and identify any risks.

We will then produce for you a series of documents to support your application and help ensure that you become authorised. These documents include a Regulatory Business Plan and Compliance Monitoring Plan. We also produce a compliance manual for you containing documentation for you to implement into your business upon authorisation to help enable you to comply with the FCA’s requirements.

An online application will then be completed along with all relevant forms, which will then be submitted to the FCA. Should there be any FCA questions, your Regulatory Adviser will work with you to draft a full response.

In short, we’re here for our clients every step of the way. We provide our clients with the benefit of our knowledge and experience to not only help ensure that your application is successful, but that your business has the right foundations to ensure positive customer outcomes.

Ongoing FCA Compliance

As an FCA authorised person or firm, you might need help to ensure you comply with the FCA’s rules.

We provide our clients with support they need to maintain compliance and avoid breaching the rules. Our bespoke service is individually tailored to each of our client’s requirements and objectives to help them meet in the best way possible.

Whether you need documentation to help you remain compliant, want ongoing advice or support, impartial monitoring of your activities or anything else, Scott Robert may be able to help.

Why Choose Scott Robert?

Scott Robert has been supporting firms through the FCA compliance process since 2008. In that time, we have helped hundreds of businesses to successfully gain and retain FCA authorisation.

We employ a team of compliance professionals who are both highly experienced and expertly skilled. We specialise in providing our clients with solutions to often complex regulatory requirements and compliance needs.

Our knowledge of FCA compliance enables our team to support you and your business, provide effective solutions to any problems you face and help you to devise and implement strategies that work for your business and your customers.

Conducting regulated activities without the correct authorisation is a criminal offence, speak to one of our experts today for confidential and no obligation advice regarding FCA authorisation.

If you want to know more about becoming FCA authorised or maintaining authorisation as an FCA authorised firm, speak to one of our experts today for confidential and no obligation advice by calling 0161 413 2796 to find out more.

Insurance distribution, previously known as insurance mediation, is a common model Scott Robert has assisted in the application process.

You can find out more about whether your firm’s activities require FCA authorisation on the FCA website or you can download our free guide to FCA authorisation below.

Applicant firms who seek FCA authorisation for insurance activity will require professional Indemnity Insurance, prudential requirements and be able to demonstrate they are ready, willing and organised. The FCA also have minimum ‘Threshold Conditions’ the applicant firm will need to meet before applying. Those who are in control of the firm or have management responsibilities must also demonstrate they are suitable and appropriate.

Appointed Representatives and Principal Firms

Firms that become authorised by the FCA may extend authorised permissions to third party firms. These are known as ‘Appointed Representatives’. In having an AR, an authorised firm would be understood as the Principal firm. Many firms start as Appointed Representatives before seeking direct authorisation from the FCA to become an insurance distributor, although this is not required.

How can Scott Robert help you?

Interested in becoming authorised by the FCA? Scott Robert can certainly assist your firm.

If you are wishing to become directly authorised by the FCA, Scott Robert can help you with the authorisation journey, this would start with one of our Regulatory Advisors discussing your proposed business model and drafting your regulatory documentation (Regulatory Business Plan, Business Continuity Plan, Compliance Monitoring Plan, Treating Customers Fairly Gap Analysis and Vulnerable Customer and Mental Capacity Policy).

A full Compliance Manual would also be provided, enabling the firm to understand and comply with regulatory requirements through the provision of policies, procedures, assessment, monitoring and record keeping documentation.

Following this, we will prepare the online application for submission to the FCA. Once submitted, we will continue to assist with any responses to the FCA.

If you are already authorised, we can assist you with your ongoing regulatory requirements, our bespoke plans are designed to fit your individual needs and budget.

  • Call and Email Support
  • Individual Policy Document Creation, Review and Amendments
  • Compliance Monitoring Plan Creation and Assistance
  • Second and Third Line of Defence Monitoring and Guidance
  • Compliant Handling Assistance
  • Financial Promotion and Website Reviews
  • Ongoing Senior Management and Certification Requirements

You can read more about Debt Counselling and Debt Adjustment authorisation on the FCAs website or you can download our free guide below.

Why Choose Scott Robert?

Scott Robert has been supporting firms through the FCA compliance process since 2008. In that time, we have helped hundreds of businesses to successfully gain and retain FCA authorisation.

We employ a team of compliance professionals who are both highly experienced and expertly skilled. We specialise in providing our clients with solutions to often complex regulatory requirements and compliance needs.

Our industry insight and comfort with compliance enables our team to support you to the fullest extent possible, helping to develop your business model and compliance.

Conducting regulated activities without the correct authorisation is a criminal offence, speak to one of our experts today for confidential and no obligation advice regarding FCA authorisation.

Interested in learning more about how you get FCA authorisation? Call us today by calling 0161 914 5727 to find out more.

You can find out more about Insurance Broker Authorisation by downloading our free factsheet from the “Access our factsheet” section below.

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