Q I read an article about the extension of the Financial Services Authority (FSA) regime to insurance, which said firms need to be on the FSA Register (see Gazette [2004] 29 July, 3). Should I be doing anything about this?


A The FSA is expanding its regulatory regime to general insurance contracts. Regulation of long-term care insurance products begins on 31 October 2004 and general insurance contracts begins on 14 January 2005.



The Law Society - as a designated professional body (DPB) - has amended the Solicitors Financial Services (Scope) Rules 2001 and the Solicitors' Financial Services (Conduct of Business) Rules 2001 to reflect these changes. Law firms working within the DPB regime (the vast majority of practices) will be able to carry on insurance mediation activities provided that they can satisfy the basic conditions in the scope rules. The word 'mediation' has caused confusion. It is used in connection with the regulated activities carried on in relation to contracts of insurance, including arranging, advising and assisting in the administration and performance of contracts of insurance. Firms carrying on insurance mediation activities must be included in the FSA register and appoint a compliance officer. The Law Society will ensure that firms regulated by the Society under the DPB regime will comply with this by submitting their details, and the name of the senior partner/sole principal, to the FSA. During the practising certificate renewal exercise, firms will be asked whether they carry on insurance mediation activities and the name of a designated compliance officer to update the FSA Register. Detailed guidance and the amended rules are available on line at: www.lawsociety.org.uk (search under 'financial services').



- The Law Society's professional ethics team provides a confidential advice service for solicitors and their staff about professional conduct rules including money laundering (tel: 0870 606 2577, from 11am to 1pm and 2 to 4pm).