PRESS RELEASE 14 June
2007
Codes of Practice proposed for General Insurance
Mediation Business
The Jersey Financial Services Commission (the “Commission”)
has issued a Consultation Paper on Codes of Practice for General
Insurance Mediation Business.
The Codes of Practice incorporate the requirements of the
Core Principles of Insurance Supervision established by the
International Association of Insurance Supervisors insofar
as they relate to general insurance mediation. The format
is the same as that already adopted in the existing Codes
of Practice applicable to other sectors of the finance industry.
Until 2005, general insurance brokers were not subject to
regulation, other than to the practices recommended by the
General Insurance Standards Council in the UK. Some of those
practices are replicated in these Codes, but there are other
additional provisions necessary to bring the Codes into line
with international standards.
All general insurance mediation businesses that have registered
under the provisions of the Financial Services (Jersey) Law
1998 will be affected to some extent by the policies, processes
and procedures set out in this document. However, these Codes
of Practice are not intended to apply to financial advisers/intermediaries
who provide investment advice by offering long term insurance
products. Such advisers and intermediaries will already be
familiar with the existing Codes of Practice that have been
issued relating to investment business.
The Commission has been notified that the International Monetary
Fund will carry out a second review of Jersey’s financial
services regulatory and supervisory legislation and practice
during the first quarter of 2008. This review will examine
in detail the extent of observance of Codes of Practice, so
it is important that these Codes have been put in place before
then.
The Commission has already begun to include general insurance
mediation businesses in its programme of on-site examinations.
A registered person’s level of observance of the Codes
of Practice will in due course be a significant element of
such examinations.
The Consultation Paper raises a number of questions, and
the Commission looks forward to receiving a full range of
responses from the industry. Responses should be submitted
by 31 August 2007.
The consultation paper can be viewed by
clicking here and paper copies obtained from the Commission’s
reception area or the Jersey Library.
- Ends -
For further information please contact: -
Nigel Woodroffe,
Director, Insurance
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822015
Fax: + 44 (0) 1534 822001
Email: n.woodroffe@jerseyfsc.org
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