1. BRITISH INSURANCE BROKERS ’ ASSOCIATION British Insurance Brokers’ Association

2. INSURANCE MEDIATION DIRECTIVE ( DON’T FORGET THE DISTANCE MARKETING & E- COMMERCE DIRECTIVES ) E- COMMERCE DIRECTIVES )

3. INSURANCE MEDIATION DIRECTIVE UK GOVERNMENT (TREASURY) UK GOVERNMENT (TREASURY) - SETS SCOPE – MINIMUM - SETS SCOPE – MINIMUM REQUIREMENTS. REQUIREMENTS. - ENACTS LEGISLATION. - ENACTS LEGISLATION.

4. INSURANCE MEDIATION DIRECTIVE INSURANCE MEDIATION DIRECTIVE UK GOVERNMENT (TREASURY) - SETS SCOPE – MINIMUM REQUIREMENTS - SETS SCOPE – MINIMUM REQUIREMENTS - ENACTS LEGISLATION - ENACTS LEGISLATION FINANCIAL SERVICES AUTHORITY (FSA) FINANCIAL SERVICES AUTHORITY (FSA) - AUTHORISE FIRMS AND INDIVIDUALS - AUTHORISE FIRMS AND INDIVIDUALS - SET RULES FOR CONDUCT - SET RULES FOR CONDUCT - MONITOR COMPLIANCE AND ENFORCE - MONITOR COMPLIANCE AND ENFORCE

5. TREASURY CONSULTATION ENDED JANUARY

6. TREASURY CONSULTATION ENDED JANUARY WHICH INSURANCE CONTRACTS? EXEMPTIONS ?

7. TREASURY CONSULTATION ENDED JANUARY TREASURY CONSULTATION ENDED JANUARY WHICH ACTIVITIES WILL BE REGULATED WHICH ACTIVITIES WILL BE REGULATED - Introducing, proposing, carrying out work preparatory to contract to contract - Concluding contracts - Assisting in the administration and performance of such contracts, in particular in event of claim. such contracts, in particular in event of claim. - Advising/arranging deals.

8. WHO WILL BE REGULATED?

9. WHO WILL BE REGULATED? INTERMEDIARIES, INCLUDES EMPLOYEES OF INSURERS FOR “RETAIL RISKS” APPOINTED REPRESENTATIVE REGIME TO APPLY DESIGNATED PROFESSIONAL BODY REGIME WHO WILL BE REGULATED? INTERMEDIARIES, INCLUDES EMPLOYEES OF INSURERS FOR “RETAIL RISKS” APPOINTED REPRESENTATIVE REGIME TO APPLY DESIGNATED PROFESSIONAL BODY REGIME

10. “PROPORTIONATE” REGULATION

11. FSA OBJECTIVES. CONSUMER PROTECTION MARKET CONFIDENCE CONSUMER EDUCATION FINANCIAL CRIME

12. FSA CONSULTATION PAPERS (C.P.’s) CP160 SELLING & ADMINISTRATION CP160 SELLING & ADMINISTRATION CLOSED 11/3 CLOSED 11/3 CP159 APPOINTED REPS (AR) CP159 APPOINTED REPS (AR) CLOSED 31/3 CLOSED 31/3 CP174 PRUDENTIAL REQUIREMENTS CP174 PRUDENTIAL REQUIREMENTS CLOSED 13/6 CLOSED 13/6 CP180 FEES ( Also CP192 closes 28/10 ) CP180 FEES ( Also CP192 closes 28/10 ) CLOSED 24/6 CLOSED 24/6 CP 187 SELLING & ADMINISTRATION & MISC CP 187 SELLING & ADMINISTRATION & MISC AMENDMENTS AMENDMENTS Closes 30/9 Closes 30/9

13. TIMETABLE DRAFT REPORTING REQUIREMENTS SEPT 2003 FINAL AR RULES SEPTEMBER 2003 DRAFT CONDUCT OF BUSINESS RULES SEPT 2003 APPLICATION PACKS AVAILABLE “FINAL QUARTER” FINAL CONDUCT OF BUSINESS RULES JAN 2004 FEEDBACK APPLN FEES ( CP180 ) SEPT 03 CP ANNUAL FEES /FOS JAN2004 APPLICATIONS “EARLY” 2004 FSA REGULATION COMMENCES 14.01.05

14. FSA CONSULTATION 160/187

15. CUSTOMER CLASSIFICATION - RETAIL - RETAIL - COMMERCIAL - COMMERCIAL

16. FSA CONSULTATION 160/187 CUSTOMER CLASSIFICATION - RETAIL - RETAIL - COMMERCIAL - COMMERCIAL - STATUS DISCLOSURE - STATUS DISCLOSURE - COMPLAINTS - COMPLAINTS

17. CP 160/187 FAIR TREATMENT OF CONSUMERS

18. CP 160/187 FAIR TREATMENT OF CONSUMERS - COMMISSION DISCLOSURE - COMMISSION DISCLOSURE (COMMERCIAL) (COMMERCIAL) - UNFAIR INDUCEMENTS - UNFAIR INDUCEMENTS - EXCESSIVE CHARGES (RETAIL) - EXCESSIVE CHARGES (RETAIL) - CANCELLATION RIGHTS (RETAIL) - CANCELLATION RIGHTS (RETAIL) 14 DAYS 14 DAYS

19. CP 160/187 FAIR TREATMENT OF CONSUMERS - COMMISSION DISCLOSURE - UNFAIR INDUCEMENTS. - CLAIMS HANDLING CLAIMS - FAIR AND PROMPTLY - PROMPT PAYMENT WHEN SETTLEMENT AGREED. - DISCLOSE ANY POTENTIAL CONFLICT OF INTEREST INTEREST

20. CP 160/187 STATUS DISCLOSURE RETAIL CUSTOMERS ( BEFORE CONCLUSION OF POLICY OR INCURRING FEES)  a) STATUTORY STATUS & HOW TO CHECK FSA REGISTER  b) CAPITAL OR VOTING RIGHTS HELD IN OR BY OTHER INSURANCE UNDERTAKINGS (10%)  c) HOW TO COMPLAIN TO THE FIRM & AVAILABILITY OF FOS  d) ANY FEES FOR ADVICE ( AS OPPOSED TO PRODUCT RELATED CHARGES )

21. CP160/187 PRODUCT DISCLOSURE CP160/187 PRODUCT DISCLOSURE GIVE RETAIL CLIENTS ON DURABLE MEDIUM PRE COVER FACE TO FACE DISTANCE YES DISTANCE NO FACE TO FACE DISTANCE YES DISTANCE NO (POST/NET) (‘ PHONE) (POST/NET) (‘ PHONE) POL SUMMARY * * x PRICE INFO * * x HOW TO CLAIM * POL DOCUM’T * x CAN BE ORAL BUT MUST GIVE ALL INFO IMMEDIATELY AFTERWARDS

22. CP160/187 PRODUCT DISCLOSURE CP160/187 PRODUCT DISCLOSURE RETAIL CUSTOMERS - KEY INFO: BENEFITS/EXCLUSIONS - KEY INFO: BENEFITS/EXCLUSIONS UNBUNDLE PREMIUMS / ADVISE IF INSURANCE OPTIONAL? UNBUNDLE PREMIUMS / ADVISE IF INSURANCE OPTIONAL? - POLICY SUMMARY / “SIGN POSTING” - POLICY SUMMARY / “SIGN POSTING” - RENEWALS MUST BE PROVIDED TO THE CUSTOMER ON - RENEWALS MUST BE PROVIDED TO THE CUSTOMER ON “DURABLE MEDIUM” 21 DAYS BEFORE POLICY EXPIRES “DURABLE MEDIUM” 21 DAYS BEFORE POLICY EXPIRES

23. CP 159 APPOINTED REPRESENTATIVES (AR) “AR ACTS AS AGENT FOR AUTHORISED FIRMS WHICH ACCEPT CONTRACTUAL RESPONSIBLE (IN WRITING) FOR CERTAIN ACTIVITIES”

24. CP 159 - AN AR IS EXEMPT FROM AUTHORISATION

25. CP 159 - AN AR IS EXEMPT FROM AUTHORISATION - REGISTER FOR AR - CANNOT BE EXEMPT AND AUTHORISED

26. CP 159 - SUBSTITUTABLE PRODUCT CATEGORIES - SINGLE/MULTI PRINCIPAL REGIME. - INTER PRINCIPAL AGREEMENTS

27. CP 159 AR ACTIVITIES - CAN INTRODUCE, ARRANGE, ADVISE

28. CP 159 AR ACTIVITIES - CAN INTRODUCE, ARRANGE, ADVISE - MONEY RESTRICTIONS

29. CP 159 AR ACTIVITIES - CAN INTRODUCE, ARRANGE, ADVISE - MONEY RESTRICTIONS - NO CLAIMS INVOLVEMENT - ? CONCLUDE

30. CP 159 AR ACTIVITIES - CAN INTRODUCE, ARRANGE, ADVISE - MONEY RESTRICTIONS - NO CLAIMS INVOLVEMENT INTRODUCER AR

31. CP 174 PRUDENTIAL AND OTHER REQUIREMENTS - PERIMETER GUIDANCE - HIGH LEVEL STANDARDS SYSTEMS AND CONTROLS. - FINANCIAL RESOURCE - COMPENSATION - LLOYDS

32. CP 174 INTERMEDIARIES CP 174 INTERMEDIARIES FINANCIAL RESOURCE SECURITY FINANCIAL RESOURCE SECURITY P.I.SEGREGATED A/C CAPITAL COMPENSATION SCHEME

33. CP 174 PROFESSIONAL INDEMNITY - LIMITS £1M OR 3 X INCOME MAX £10M. MAX £10M. - ALTERNATIVE GROUP G’TEES.

34. CP 174 SEGREGATED ACCOUNTS - COMPULSORY, UNLESS RISK TRANSFERRED

35. CP 174 SEGREGATED ACCOUNTS - COMPULSORY UNLESS RISK TRANSFERRED - STATUTORY TRUST FOR “PRIVATE”

36. CP 174 SEGREGATED ACCOUNTS - COMPULSORY UNLESS RISK TRANSFERRED - STATUTORY TRUST FOR “PRIVATE” - VOLUNTARY TRUST “NON-PRIVATE” - AUDIT

37. CP 174 CAPITAL. NOT HOLDING CLIENT MONEY - MIN 5K OR 5% OF INCOME HOLDING CLIENT MONEY - MIN 10k OR 5% OF INCOME OR 5% OF CLIENT MONEY BALANCES. MONEY BALANCES. - INTANGIBLES

38. CP 174 COMPENSATION - EXTEND FSCS - LEVELS 90%, 100% COMPULSTORY - ALREADY INCLUDES “NON PRIVATE” TO £1M TURNOVER TO £1M TURNOVER

39. CP 174 APPROVED PERSONS

40. - NUMBERS LINKED TO EXECUTIVE BOARD - SMALLER FIRMS ANTICIPATED ONE PERSON WILL MEET CRITERIA

41. CP 180 APPLICATION FEES CP 180 APPLICATION FEES 31/5 31/5  INCOMEe - mailpaper e-mail paper  0 - 1m 500600 1,100 1,200  1 - 25m8,750 8,750 10,750 11,000  >25 m 22,500 23,000 24,500 25,000

42. CP 180 FINANCIAL SERVICES COMPENSATION SCHEME CP 180 FINANCIAL SERVICES COMPENSATION SCHEME  - COMPENSATION FUND LEVY  “Pay as you go”  - MANAGEMENT EXPENSES LEVY  Consultation rules & funding in CP Jan 04

43. CP180 FINANCIAL OMBUDSMAN  - GENERAL LEVY  - ( IFA 2003/4 £20 per Approved Person Subject to Minimum £75 per firm ) Subject to Minimum £75 per firm )  - CASE FEE  - £360 per case or £600 per “special” case

44. CP192 FEES ( SUPPLEMENT 180 )  SUGGESTS THAT DIRECT INSURERS SHOULD HAVE “WEIGHTING” OF 10% ON PREMIUMS TO ARRIVE AT FIGURE ON WHICH THEIR FEES WILL BE CALCULATED  EQUATES TO 9.O9% ? IS THIS ENOUGH ?

45. EXTERNAL COSTS  APPLICATION FEE  PERIODIC FEES  FINANCIAL SERVICES COMPENSATION  FINANCIAL OMBUDSMAN SERVICE

46. BROKER COSTS  PROFESSIONAL INDEMNITY INSCE  CAPITAL REQUIREMENTS  TRAINING & COMPETENCE  SYSTEMS ( ? I/T )

47. BROKER BENEFITS  LEVEL PLAYING FIELD  LESS COMPETITION FOR BROKER SECTOR  MORE ROBUST BUSINESSES  MORE VIBRANT BROKER SECTOR

48. NEXT STEPS  BE PREPARED - DON’T BE SCARED  BUSINESS & COMPLIANCE PLAN  GAP ANALYSIS & PROJECT PLAN  BE AWARE - HAVE YOUR SAY

49. BRITISH INSURANCE BROKERS ’ ASSOCIATION British Insurance Brokers’ Association