As a general rule, law firms are not permitted to engage directly in insurance distribution activities, unless they are licensed by the FCA. This document focuses on law firms carrying on insurance distribution activities on an ancillary basis, which is permitted. This is most likely to be relevant to law firms engaging in conveyancing, personal injury or private client work.
Insurance distribution activities are, broadly:
advising on or proposing an insurance contract
carrying out other work in preparation for the conclusion of an insurance contract or concluding an insurance contract
assisting in the administration and performance of an insurance contract
providing insurance comparison information via website
For the detailed definitions, see Practice Note: Insurance distribution activities—law firms—What are insurance distribution activities?
The definition of insurance distribution does not include ‘introducing’.
This means you will not have to comply with the requirements of the insurance distribution regime if you merely introduce the client to an insurance provider—save that where you introduce the client to an insurance intermediary (ie broker), you must check they are...
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