Exclusions applying to specified activities relating to insurance
Exclusions applying to specified activities relating to insurance

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Exclusions applying to specified activities relating to insurance
  • The general prohibition
  • Effect of the Insurance Mediation Directive on exclusions
  • Effecting and carrying out contracts of insurance
  • Dealing in certain contracts of insurance as principal or as agent
  • Exclusions for arranging deals in contracts of insurance
  • Managing investments
  • Assisting in the administration and performance of contracts of insurance
  • Advising on contracts of insurance

STOP PRESS: Relating to insurance distribution: On 1 May 2018, the government published the Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Order 2018 (SI 2018/546) which transposes parts of the Insurance Distribution Directive (Directive (EU) 2016/97) (IDD). The Order amends the relevant provisions of the FSMA 2000 (Regulated Activities Order) 2001 (SI 2001/544) (RAO). Among other things, the Order substitutes the definition of ‘insurance mediation’ for ‘insurance distribution’, introduces an exclusion from regulated activity in the RAO for the provision of specified information where no other steps are taken by the insurance intermediary to conclude the contract and amends the criteria for the ‘connected contracts exemption’ in Article 72B of the RAO.

The general prohibition

Under section 19 of the Financial Services and Markets Act 2000 (FSMA 2000), a person cannot carry out regulated activities in the UK unless that person is authorised or exempt. This is known as the general prohibition. For information about the territorial scope of the general prohibition, see Practice Note: Territorial scope of the prohibition.

An authorised person is a person who:

  1. has been given permission by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) under FSMA 2000, Pt 4A to carry on certain regulated activities; or

  2. is passporting its services into the UK under a EEA directive (eg the Markets in