The Central Bank has recently published its third issue of the Intermediary Times, a newsletter for brokers and retail intermediaries.
Issue 3 of the Intermediary Times, dated July 2012, contains information on the outcome of the Central Bank’s recent professional indemnity insurance (“PII”) inspections and on the requirement to submit annual returns.
Professional Indemnity Insurance Themed Review
In early 2012, the Central Bank carried out a PII themed inspection across a range of full-time and part-time insurance intermediaries registered under the European Communities (Insurance Mediation) Regulations 2005 (the “Regulations”). The Central Bank found that only 64% of the firms inspected complied with the requirements of the Regulations. For this reason, the Central Bank will conduct a second review of PII cover later in the year to assess wider compliance by the insurance intermediary sector. The Intermediary Times also sets out the findings of the Central Bank’s inspection and highlights some of the key obligations on insurance intermediaries under the Regulations.
The Central Bank has confirmed that it has received a high submission rate for firms which were due to submit an annual return by 30 June 2012 and reminds firms that have yet to do so to submit their return without further delay. The Central Bank also reminded firms whose year-end is in January to submit an annual return by 31 July 2012.
The Intermediary Times also contains general guidance on the requirement to submit an annual return, including, advice for firms no longer trading or no longer carrying on regulated business, advice for those having difficulty submitting an annual return, details on the three step process for submitting an annual return and information on the requirement to submit audited financial accounts. Further, the Intermediary Times contains a table setting out the specific obligations for a firm depending on the legal provisions under which it is authorised, ie, whether authorised under the Regulations, the Investment Intermediaries Act 1995 or the Consumer Credit Act 1995.
The full text of Issue 3 of the Intermediary Times is available here.