The UK’s largest commercial property insurer, Norwich Union, has launched a guide for property owners and managing agents to explain how to comply with the new FSA regulations.
The UK’s largest commercial property insurer, Norwich Union, has launched a guide for property owners and managing agents to explain how to comply with the new FSA regulations.
From 14 January 2005, anyone arranging or advising on insurance contracts will need FSA authorisation to do so – or will be breaking the law. The deadline to register for authorisation is 13 July 2004, just over two weeks away.
The guide, produced in conjunction with PricewaterhouseCoopers, clarifies the impact of regulation on property owners and managing agents, providing a concise overview of what steps they need to take, a table of key actions and how the authorisation process will work.
Simon Bloomfield, distribution manager at Norwich Union explains: "Busy professionals are unlikely to have had time to plough through the hundreds of pages of the FSA handbook and consultation documents, so there is understandably a lot of uncertainty surrounding the issue.
"The fact that the rules are so lengthy has been a major stumbling block in getting property owners and managing agents to apply. We’ve made every effort to strip out the jargon and cut to the crux of the issues that these businesses need to address."
The new legislation could hit the commercial property sector hard, as a significant proportion of its business profits come directly from selling financial services products.
Simon Bloomfield continues: "We estimate that a significant percentage of property professionals are not yet actively preparing for the impact of the legislation.
"Time is now running out. Property owners and managing agents need to register by 13 July at the latest to guarantee that the FSA will confirm authorisation to sell general insurance products by the January deadline.
"Unless they have either obtained direct authorisation from the FSA, or found another firm to ‘appoint’ them and manage their compliance, they will be committing a criminal offence by continuing to arrange, administer or advise on insurance contracts from 14 January 2005.
"We are confident the guide will help property owners and managing agents get started."
Norwich Union will be issuing the FSA guide to its intermediaries and asking them to share them with their property customers this week. If you would like an electronic copy of this document, visit: http://www.norwichunion.co.uk/ebroking/business_advisor/fsa_regulation_briefings.htm
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For further information, please contact:
Alison Owen at Staniforth on 0161 274 0100
David Ross at Norwich Union on 08703 66 68 65/07786 526350.
Notes to editors:
- Norwich Union is the UK's largest insurer with a market share of around 14%
- With a focus on insurance for individuals and small businesses, Norwich Union insures:
- one in five households
- one in seven motor vehicles
- more than 800,000 businesses
- Norwich Union products are available through a variety of distribution channels including brokers, corporate partners such as banks and building societies and Norwich Union Direct
- Norwich Union’s news releases and a selection of images are available on the Aviva internet press centre at www.aviva.com/media
- An ISDN facility is available for studio quality broadcast. Call the press office on 08703 66 68 68
- For all life & pensions media enquiries 08703 66 68 73
- For all other media enquiries 08703 66 68 68
- Members of the General Insurance Standards Council
- Members of the Aviva group