The CLC is making changes to relevant sections of the CLC Handbook to ensure all its regulated practices will be compliant with the Insurance Distribution Directive (IDD) when it comes fully into force from 1 October this year.
The IDD is EU legislation which sets out the regulatory requirements for firms designing and selling insurance products. The IDD replaces the current Insurance Mediation Directive (IMD).
The IDD will create a level playing field for insurance intermediaries and insurance distribution, regardless of the channel customers use to purchase products. Ultimately, the IDD aims to ensure consistent practical standards, raise conduct standards, improve consumer protection and ensure effective competition.
With regards to the CLC Handbook, changes have been made to the following documentation:
- Acting as Ancillary Insurance Intermediaries Code
- Acting as Ancillary Insurance Intermediaries Guidance
- Professional Indemnity Insurance Code
- Regulatory Arrangements Glossary of Terms
- CLC Recognised Body Recognition Framework
- CLC lawyer licensing framework
- ABS Licensing framework
On its website, the specialist property law regulator states that:
“The CLC is a Designated Professional Body regulating CLC Practices as Exempt Professional Firms under Part XX Financial Services and Markets Act 2000 (FSMA). This enables us to regulate CLC practices in the provision of Insurance Intermediary Activities (renamed Insurance Distribution Activities under the IDD).”
“We will only regulate your practice acting in the capacity of an Ancillary Insurance Intermediary (as defined). This means that the specific requirements for individuals to undertake 15 hours CPD relating to the provision of Insurance Intermediary Activities do not apply, although ‘All staff providing Insurance Distribution Activities must possess appropriate knowledge and ability to perform their duties’ (para 45 CLC’s Acting as Insurance Intermediaries Code (AIIC)).
“Your practice must be regulated by the FCA if it wishes to carry out those insurance intermediary activities not specifically permitted under AIIC.”
The CLC has produced a Quick Guide to Acting as Ancillary Insurance Intermediaries with links to all the documents affected by the change. This can be accessed here.
