The General Insurance Standards Council (GISC) membership will not be compulsory for the foreseeable future, after the proposed implementation of Rule F42 was postponed yet again.
The Competition Commission Appeals Tribunal (CCAT) heard the Institute of Insurance Brokers' (IIB) appeal against the Office of Fair Trading's (OFT) decision on F42's legality on July 20 and 23, but was unlikely to have a result until late August.
OFT director general John Vickers had thrown out the IIB's complaint against F42, which allows insurers to cancel agency agreements with non-GISC members, brokers and intermediaries in May.
At the time, IIB director general Andrew Paddick said the CCAT was his final route of appeal before admitting defeat in his fight against the GISC.
GISC chief executive Chris Woodburn said time would be needed to consider the decision, forcing the GISC to further postpone the October 15 start of the F42 transitional arrangements.
Since the transition will no longer start on this date, the full implementation on December 31 has also been put back. Alternative dates will not be suggested by the GISC until it has considered the CCAT decision.
“The GISC will ensure members are given sufficient time to make the necessary arrangements, including the completion of the review of intermediary relationships, before the start of the F42 transitional period,” Woodburn said.
He said a decision in favour of the IIB would force the GISC to refer back to Vickers for an exemption decision.
Paddick said the postponement was nothing to get excited over. “We're waiting for the outcome, then we'll take it from there,” he said.
