Under the Financial Services (Insurance Distribution) Regulations 2020 (“the IDR”), an insurance or reinsurance undertaking or intermediary (“the principal”) may appoint an insurance, reinsurance and ancillary insurance intermediary as an appointed intermediary (“AI”). An AI is able to carry out the regulated activity of taking up or pursuing insurance or reinsurance distribution in relation to a risk or commitment under the responsibility of a principal. A principal is therefore responsible for an AI’s actions or omissions and must ensure that the AI meets all of the applicable obligations under the IDR and the Financial Services Act 2019 (“FSA 2019”).
Under Regulation 8 of the IDR, the AI is “exempt from the general prohibition in relation to any regulated activity of insurance distribution or reinsurance distribution under the responsibility of its principal.” This means that an AI is not considered to be an authorised person and is not required to obtain a Part 7 permission under the FSA 2019. However, under Regulation 7 of the IDR AIs must be registered.
- Prior to registering an AI the principal must ensure that:
- the AI meets the conditions for registration in Regulation 5 of the IDR;
- the AI meets the relevant conditions in Part 7 and Schedule 12 of the FSA 2019 on information regarding close links;
- the principal has conducted due diligence checks on the AI and is satisfied that, on the information available, there is no adverse information that would impede the principal from appointing the AI; and
- the principal will ensure that it has adequate oversight over the AI once it is registered.
In order to register an AI please submit the registration fee and the attached completed application form to firstname.lastname@example.org.
Click here to download Appointed Intermediary Form
There is a registration fee for each AI registered. Please see the Financial Services (Fees) Regulations 2020.
There is no annual fee payable; however, the income received by the principal from all AIs should be included in the principal’s turnover, which will then form part of the GFSC’s annual fee calculation.
Conduct of Business Requirements
Part 3 of the Regulations details the principal’s conduct of business requirements generally as well as in relation to the principal’s responsibilities for its AIs.
On an on-going basis the principal must ensure that:
- it has adequate oversight of the AI;
- both the principal and the AI comply with the conduct of business regulations, as set out in the Regulations; and
- it keeps the GFSC informed of any changes to the registered AI, including when the principal ceases its relationship with the AI.
Please note that these lists are not exhaustive and should be considered in conjunction with the requirements under the Financial Services Act 2019 and the Financial Services (Insurance Distribution) Regulations 2020.