CII publishes fact file on intermediary regulation

Complementing its recently published fact file on the regulation of mortgage business and other files on the regulation of general insurance and life and investment business, the new title joins the growing portfolio of specially commissioned online technical guides within the CII’s online Information Services facility.

Written by Tony Wiltshire, managing director of FSA Consulting Ltd, the fact file covers the FSA prudential rules applicable to insurance brokers, IFAs, other life, pensions and investment advisers and mortgage brokers.

Bringing together all three categories of intermediary in one guide reflects two current trends in financial services:

* the convergence of financial businesses whereby mortgage brokers often offer to arrange life cover to support a mortgage and buildings and contents cover on the property being purchased; and

* the convergence of FSA rules as its risk-based regulation brings a common approach to each sector of the industry, subject as needed to sector-specific requirements.

Tony Wiltshire said: "All intermediaries are subject to a common set of prudential requirements from the FSA, covering ownership and management by fit and proper persons, capital, professional indemnity insurance, client money and reporting. While the emphasis in recent months has, necessarily, been on compliance with conduct of business rules, it is vital that the intermediary sector does not focus entirely on this aspect of the regulatory regime. Prudential rules may not be customer facing but they are an essential support to the operation of a successful business which firms ignore at their peril."

Available free to members of the CII, Society of Mortgage Professionals and Personal Finance Society, the fact file can be accessed at A summary is available for non-members.