From January 14th 2005, the FSA will regulate general insurance – bringing household insurance, term life, critical illness and income protection into its regime – and firms who advise on these products must make the necessary preparations.
With M Day now just a memory, GI Day brings one of the last remaining “non-reg” sectors into the FSA regime. Firms must make sure they are authorised for GI business and understand the changes required by FSA regulation – or face enforcement action or possible removal of their permissions.
A majority of mortgage intermediaries also provide GI services and to help with the transition, AMI’s latest factsheet ‘A Guide to General Insurance Regulation’ aims to outline the key changes. With just five weeks left until ‘GI Day’, firms must act now to ready themselves for the changeover.
The factsheet addresses what’s covered and requirements for advice; details of disclosure requirements; rules for policy renewals and cancellations; and information on qualifications, reporting and PII.
Chris Cummings, Director of AMI, says: “GI Day is the second installment for many firms, and readiness for it no less important than were preparations for M Day.
“Adjusting to the new mortgage IDD and KFI format has taken time, and firms who do GI business must accommodate these separate requirements. If you don’t already know about the combined IDD or the ‘demands and needs’ statement, now is the time to find out.”
