| Link(s): | CP23/18: Quarterly Consultation Paper No. 41 | FCA CP23/18: Quarterly Consultation Paper No. 41 (fca.org.uk) |
Context
Once a quarter, the FCA consults on proposed miscellaneous amendments to its Handbook.
Key points to note
Changes to the employers’ liability insurance rules are being proposed to ICOBS 8 Annex 1 to simplify the Employer Reference Number (ERN) matching requirements:
- As the Employers’ Liability Tracing Office’s (ELTO) use of the HMRC matching process has improved its success rate, the requirement for insurers to obtain ERN information as well results in a duplication of costs and processes. The industry’s resources could instead be better directed at tracing the 25% of cases where ELTO can’t obtain the ERN from HMRC.
- Amend ICOBS 8 Annex 1 so that employers’ liability insurers meeting certain conditions will no longer be required to exercise their best endeavours to obtain and provide ERNs to a tracing office.
- If cases remain where ERNs are not available, insurers must use their best endeavours in assisting the tracing office as far as reasonably possible to obtain the information. A window of 28 business days is being proposed for the tracing office to obtain the ERN from HMRC, after which insurers must use their best efforts to obtain the outstanding ERNs
- Current rules will continue to apply where firms do not meet the above conditions.
Changes to SUP 12.4.10AR to clarify its interaction with MIPRU 3.2 are also being proposed:
- To amend SUP 12.4.10AR to clarify that it is the principal firm that must obtain and maintain continuous PII cover for the activities for which it may be liable as a result of the conduct of its Appointed Representatives (AR)
- To add guidance to SUP 12.4.10AR to further clarify the interaction between this rule and the requirements in MIPRU 3.2.
To provide comments regarding either or both of the proposals, please use this online response form or alternatively email: cp23-18@fca.org.uk
Consultation closes on 9 October 2023.
Next actions
None – for information and awareness.