Question of ethics

Q My firm sometimes acts as an insurance intermediary and I have heard that all insurance intermediaries are going to be required to be authorised by the Financial Services Authority (FSA).

Is this correct?

A The Treasury is currently consulting on proposals following the announcement in December 2001 that the FSA would be given responsibility for regulating insurance intermediaries.

The Law Society has had discussions with the Treasury and it is proposed that the designated professional body regime will be extended to insurance mediation activities.

This would mean that solicitors would be able to advise on and/or arrange contracts of general insurance where these activities are 'incidental' to other professional services.

The timetable for implementation of these proposals is October 2004.

In the meantime, membership of the General Insurance Standards Council continues to be voluntary, although it is understood that they will probably cease taking new members during 2003.

The Treasury's consultation paper is available on the Treasury Web site (www.hm-treasury.gov.uk) and the Treasury would like responses by 31 January 2003.

Be aware

The transitional provision allowing private practitioners in England and Wales to postpone putting 'regulated by the Law Society' on certain items of stationery expires on 31 December.

From 1 January 2003 this statement must appear on all letterheads and fax headings in accordance with the Solicitors' Publicity Code 2001.

Please note

The professional ethics lines are open for general enquiries between 11am and 1pm and 2pm and 4pm.

Lines are less busy in the afternoon.

We take emergency calls outside these hours, tel: 0870 606 2577.

Contact the Professional Ethics Division, Ipsley Court, Berrington Close, Redditch, Worcestershire, B98 0TD, DX 19114 Redditch, fax: 020 7320 5897.

Question of ethics is compiled by the Law Society's professional ethics guidance team.

Send questions for publication to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD.