The latest from LIIBA, who have welcomed soem clarity on regulation on overseas distribution deals;
London and International Insurance Brokers’ Association (LIIBA) has today confirmed with its members that the Financial Conduct Authority’s (FCA) conduct rules do not apply to distribution services carried out outside UK. LIIBA shared an email from the FCA that provides written confirmation of the clarification. This will considerably reduce the regulatory burden placed on LIIBA members when they deal with overseas clients.
Christopher Croft, LIIBA Chief Executive, commented: “This is welcome news for LIIBA and our members. It concludes a decade-long lobbying effort to persuade FCA of the need for this clarity.
“Until now, a LIIBA member receiving business from a producing broker overseas could not be certain that it would not be held accountable for the original recommendation made to the client. This would lead to a certain amount of ‘second guessing’ of the work that added unnecessary cost to the process. Now brokers can be confident that their sole responsibility is to carry out the instructions of their broker partner leading to a streamlined and efficient placing experience.
“This development is a positive sign of FCA responding to its new objective to facilitate international competitiveness and economic growth. FCA is to be congratulated for providing this clarity.”
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