The Financial Conduct Authority (FCA) has clarified that its conduct rules will not extend to distribution services conducted outside the United Kingdom, the London and International Insurance Brokers’ Association (LIIBA) has revealed.
The broking body made the announcement to its members, with the clarification aimed at alleviating the regulatory pressures previously faced by LIIBA members when engaging with clients based overseas.
The confirmation from the FCA also comes as a resolution to a longstanding request for clarity from LIIBA, marking the end of a decade-long advocacy campaign.
Christopher Croft (pictured above), the chief executive of LIIBA, expressed relief and satisfaction at the development, calling it “welcome news” for both the association and its members.
“Until now, a LIIBA member receiving business from a producing broker overseas could not be certain that it would not be held accountable for the original recommendation made to the client,” Croft said. “This would lead to a certain amount of ‘second guessing’ of the work that added unnecessary cost to the process. Now brokers can be confident that their sole responsibility is to carry out the instructions of their broker partner leading to a streamlined and efficient placing experience.”
Croft also commended the FCA for its decision, interpreting it as a sign of the regulator's commitment to fostering international competitiveness and economic growth.
“This development is a positive sign of FCA responding to its new objective to facilitate international competitiveness and economic growth. FCA is to be congratulated for providing this clarity,” he said.
Separately, LIIBA also recently named a new chair for the representative body, with Andy Bragoli, the global head of placement at Howden, taking on the role.
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