Does the firm or any individual undertake general insurance mediation work?
General insurance mediation work is one or more Regulated Activities as defined in the Financial Services and Markets Act 2000. If you or your firm undertake any of the Regulated Activities below and receive any form of payment, reward or commission for doing so, then you will need to be regulated for this by the Financial Services Authority or an appropriate scheme such as the RICS Designated Professional Body (DPB) Scheme. There are six regulated activities in relation to general insurance work:
- Dealing in insurance contracts as agent - for example concluding an insurance contract on behalf of a client.
- Arranging (bringing about) deals in insurance contracts - for example negotiating the terms of an insurance contract on behalf of a client.
- Making arrangements with a view to transactions in insurance contracts - this activity is different to the one above in that it does not have to result in an actual contract being concluded. If for example, you introduce a client to a broker or insurer for advice and assistance.
- Assisting in the administration and performance of a contract of insurance - generally relates to activities carried on after the contract is in force. Examples of regulated activities under this section could be notifying an insurance claim to the insurer and negotiating settlement of the claim on behalf of the customer.
- Advising on insurance contracts - for example recommending a specific policy to a person
- Agreeing to carry on a regulated activity in 1-5 above - This activity includes the entering into a legally binding agreement to provide services which consist of regulated activities.
For more examples of whether something is a Regulated Activity, please see Appendix A to Guidance for the DPB Scheme. We have also produced a help sheet tailored to Property Managers which expands on regulated activities which is available at www.rics.org/dpb.
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