It doesn’t matter if brokers decide to become directly authorised, appointed representatives, introducers or want to leave the industry, CETA will provide full support to every broker:
Becoming Directly Authorised with the FSA – brokers who opt for direct authorisation will have access to a broad range of support services including compliance support via a fully FSA compliant quotation system, access to CETA’s training materials, access to a computerised training log, use of CETA’s extensive panel of product providers and use of an on-line case tracking system. Directly authorised brokers will receive competitive commissions, which will be paid electronically directly into their bank accounts.
Becoming Appointed Representatives – CETA will act as a Principal to provide a full network service for brokers who wish to sell a range of general insurance products including household, ASU, term assurance and critical illness cover. CETA network service will include full compliance support, comprehensive training, a training log, ongoing compliance assessment, full PI cover, help with new business development and the provision of multiple principal agreements, so that brokers have access to a broad range of additional products such as mortgages.
Introducer – This option is for those for whom general insurance is incidental to their main business. CETA will provide them with cards and leaflets to give to their clients, detailing their membership number and our telesales lines. Commission will be paid at a slightly lower rate than our standard terms.
Leaving the industry – CETA has developed ‘CETA Exit’ which enables brokers to receive a continuing income stream after they have left the industry. CETA will continue to market and develop a broker’s client bank and pay ongoing commission for existing renewals and any new business. Commission will be paid electronically and brokers will be able to track their income on-line using CETA’s internet service.
CETA’s Managing Director, David Quick, said: “The regulatory focus is on the mortgage market at the moment because it comes under the spotlight in October next year, with general insurance following on in January 2005. CETA has made sure it is ready for regulation well ahead of schedule, so that brokers can make decisions about general insurance at the same time they decide about mortgages.
“Direct authorisation will give brokers the greatest freedom to pick and chose the product providers they want to work with, but if brokers prefer to become appointed representatives, introducers or leave the industry altogether, that’s fine, as CETA is able to help. Brokers should remember that they don’t have to use the same Principal for general insurance as they do for mortgages. Many mortgage networks have only a limited availability of general insurance products and mortgage brokers may want to consider using a different principal which can provide a specialist general insurance service.”
Brokers and financial advisors interested in knowing more about CETA’s services should call 0845 4583073 or visit CETA’s website at www.ceta.co.uk for more details. Alternatively, brokers can visit CETA’s stand at Mortgage Expo in November, where full information will be available.
