January 14 saw the FSA regime extended to cover general insurance including contracts such as household insurance as well as ‘pure protection’ products such as term life, ASU, critical illness and income protection.
AMI has released the factsheet stressing that firms must understand how the additional GI rules affect their firm and implement the required changes.
Among the suggested checks are whether firms have made provision for: PII cover; senior management controls; regulatory reporting on GI; the new business process; disclosure rules; introductions; complaints handling; training and competence.
Ben Stafford, policy officer at AMI, said: “The majority of mortgage intermediaries also advise on GI products and it’s vital for firms to prepare for this second hurdle.
“GI will not be core business for many firms but the temptation to approach it less stringently must be avoided.”
Bruce Reid, managing director of Select & Protect, said: “We have updated our software before ‘GI Day’ in order to make the transition into GI regulation simple to all our agents.”
John Ellis, director of public affairs at the Personal Finance Society (PFS), said: “There is still ignorance out there with IFAs believing they are authorised already when they do not have the required permissions.
“It is a welcome move by AMI and it is right and proper that it is leading the way. I fear firms will need continual reminding until they get it right.”
