General Insurance Mediation Business Code of Practice

Summary

This Code, issued by the Jersey Financial Services Commission under Article 19 of the Financial Services (Jersey) Law 1998, sets out enforceable conduct, governance and prudential requirements for firms registered to carry on general insurance mediation business (Class P or Class Q). It has been in force since 1 January 2008 and was last revised with effect from 1 January 2021. The Code is organised around seven high level principles, each supported by detailed rules.

• Integrity and client interests: Registered persons must conduct business with integrity, act with due skill and care, avoid or manage conflicts of interest, and not seek to circumvent their regulatory responsibilities.
• Governance and controls: Firms must maintain an effective corporate governance system, including a regulatory span of control of at least two appropriately qualified or experienced people, clear apportionment of responsibilities, a Compliance Officer and Money Laundering Reporting Officer, adequate record keeping, and a complaints handling procedure.
• Competence and CPD: Registered persons must ensure staff integrity and competence and support Continuing Professional Development.
• Transparency: Firms must be transparent in their business arrangements with clients.
• Financial resources and insurance: Registered persons must maintain, and be able to demonstrate, adequate financial resources (net free assets) and adequate professional indemnity insurance.
• Dealing with the JFSC: Firms must deal with the JFSC openly and co operatively, including notifying the JFSC in writing when key governance or compliance thresholds (such as the regulatory span of control) are not being maintained.
• Advertising and statements: Registered persons must not issue advertisements or statements that are misleading, false or deceptive, and must meet detailed content, disclosure and risk warning requirements for advertisements.

Failure to comply with the Code can constitute grounds for JFSC regulatory action, including additional registration conditions, directions under Article 23, financial penalties, or revocation of registration, and the Code is admissible as evidence in legal proceedings relevant to a registered person's conduct.

Key obligations

• Conduct business with integrity and not act so as to avoid regulatory responsibilities under the Code.
• Act with due skill, care and diligence, seek appropriate client information, and maintain documentary evidence of client needs and advice given.
• Implement adequate procedures to identify and address conflicts of interest and ensure delegations of authority are for a specific purpose, monitored, and subject to due diligence.
• Maintain an effective corporate governance system with a regulatory span of control of at least two appropriately qualified or experienced people who are actively involved in day to day management.
• Notify the JFSC in writing as soon as the registered person becomes aware that the regulatory span of control requirement will not be maintained.
• Appoint a Compliance Officer and Money Laundering Reporting Officer and maintain adequate internal control systems.
• Maintain adequate records, including client documentation, and operate a complaints handling procedure.
• Ensure integrity and competence of staff and support ongoing Continuing Professional Development.
• Be transparent in business arrangements with clients.
• Maintain and be able to demonstrate adequate financial resources (net free assets) and adequate professional indemnity insurance.
• Deal with the JFSC in an open and co-operative manner, including providing information to the JFSC where required under the Code.
• Ensure advertisements and public statements are not misleading, false or deceptive and comply with the Code's detailed advertising content and disclosure rules.

Applies to

registered persons carrying on general insurance mediation business (Class P), registered persons carrying on general insurance mediation business (Class Q)

Related documents

• This document is made under Financial Services (Jersey) Law 1998