IFAs allowed extra time to submit GISC applications
The General Insurance Standards Council (GISC) is granting IFAs more time to get their membership applications in, due to an appeal that is currently under review by the Competition Commission appeal tribunal.
The new general insurance regulator has postponed the implementation of rule F42 until 15 October 2001. Rule F42 requires that GISC members only deal with those intermediaries in the distribution chain who are also regulated by GISC either as members in their own right, or as an appointed agent of a member.
The rule was due to come into force on 1 September 2001.
However, an appeal brought by the Association of British Travel Agents and the Institute of Insurance Brokers questioning the legitimacy of this has led to the bodies recommending that their members await the decision of the tribunal before joining the GISC.
Anthony Howland, chairman of GISC, said: 'We are expecting the decision from the Tribunal by mid-August. Whatever the result, we want all firms (insurers and intermediaries) to know there will be time for them to consider their position once the decision of the tribunal is known. Some in the industry intend to delay their decision about their regulatory status until that time.'
While the proposed start date has changed, the outline of the schedule for membership remains broadly the same, and as from 31 December 2001 members of the GISC will only be permitted to deal with intermediaries who are also registered GISC members.
• For further information on how the GISC will affect IFAs, turn to the feature on pages 18-19.
