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.
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For further information please contact: -
Jersey Financial Services Commission
Tel: + 44 (0) 1534 822015
Fax: + 44 (0) 1534 822001