Introducer Appointed Representative (IAR) compliance is a minefield!
IARs need to be registered with the FSA unless they are exempt. To be exempt, three criteria must apply:
- The introducer passes on the intermediary or insurer details to the prospect, but does not pass the prospects details to the intermediary or insurer.
- The product introduced must be incidental to the main business of the introducer, such as a letting agent giving out leaflets for a let property insurer. A letting agent giving out travel insurance leaflets would not meet this criterion.
- The introducer is not engaging in other regulated activities; for example, they are not mortgage advisers.
OR……………………
The introducer gains no direct or indirect benefit whatsoever from the introduction. Hence you can tell your brother about your great car insurance deal!
If there’s anything else going on, the introducer will need to be registered and follow the FSA rules for an IAR.
Information brought to you by Karen Malin ACII CeRCC
www.thegiconsultant.com