CIPR 6.3.1 Insurance intermediaries — initial disclosure documents — additional requirements

(1) After the information required by rule 4.4.2, the initial disclosure document for an authorised firm that proposes to conduct insurance mediation business must set out the following information in the following order:
(a) information about whether it acts for an insurer or any other person, or independently for customers;
(b) details of any direct or indirect holdings by the firm that represent more than 10% of the voting rights or capital in an insurer;
(c) details of any direct or indirect holdings by an insurer or its parent entity that represent more than 10% of the voting rights or capital in the firm;
(d) whether the firm has given, or will give, information or advice about the insurance contract offered to the customer on the basis of:
(i) a fair analysis of the market;
(ii) insurance contracts available from a limited number of insurers; or
(iii) insurance contracts available from a single insurer;
(e) the full names of each insurer for which the firm acts and, for each insurer:
(i) the types of insurance (for example, motor insurance; health insurance), that the firm will give information or advice about; and
(ii) any contractual obligations or arrangements that limit the scope of advice that the firm can offer;
(f) the amount of any fees or commissions charged by the firm in relation to an insurance contract or, if the actual amount of a fee or commission charged by the firm cannot be given, how a customer can calculate the total amount;
(g) if the firm is a tied agent, the disclosure required by rule 6.3.2.
(2) An authorised firm must not hold itself out as giving information or advice to customers about insurance contracts on the basis of a fair analysis of the market unless:
(a) it has considered a large enough number of insurance contracts available in the relevant sector or sectors of the market; and
(b) the consideration is based on criteria that reflect adequate knowledge of insurance contracts available in the relevant sector or sectors of the market.
(3) If an authorised firm gives information or advice to customers about insurance contracts on the basis of insurance contracts available from a limited number of insurers or a single insurer, the firm must state in the initial disclosure document whether:
(a) it is contractually obliged to conduct insurance mediation business on that basis; or
(b) it does so as a matter of policy.
Derived from QFCRA RM/2019-2 (as from 1st January 2020).