Risk managers arranging insurance for joint-ventures will be outside of the scope of mediation regulation, says law firm Pinsents.
The law firm said: "Up until now there has been much speculation as to whether group risk managers who arrange insurance for group companies will be caught by the forthcoming Insurance Mediation regulations on 14 January 2005. The same question arose with regards to joint ventues.
"However, yesterday the FSA issued their guidance note clarifying the issue saying that authorisation may not be necessary.
"Importantly, this goes further than dealing with intra-group insurance arrangements and suggests that those who arrange insurance for joint ventures will be similarly outside the scope of regulation, though it will be important for companies to check in each case that their activities do fall within the situations outlined in the guidance. For example, if the arranging party receives a commission, they will almost certainly be caught and will require authorisation."
