The General Insurance Standards Council (GISC) will have to apply to the Office of Fair Trading (OFT) for exemption from the Competition Act 1998, putting back compulsory membership at least four months.
This afternoon, the Competition Commission Appeals Tribunal (CCAT) announced its judgement on the appeal by the Institute of Insurance Brokers (IIB) against the OFT's decision to give negative clearance to the GISC.
OFT director general John Vickers came to the decision because the GISC did not take part in commercial activity.
However, the CCAT ruled that Vickers had been wrong to give the GISC negative clearance.
GISC chief executive Chris Woodburn had pre-empted the CCAT decision in an exclusive interview with Insurance Times two weeks ago.
This means OFT must consider an application for exemption from the legislation, made by the GISC when it first approached the OFT.
Woodburn said it could take up to four months for the OFT to make a decision.
Rule F42, which would allow insurers to refuse to deal with non-GISC member brokers and intermediaries, will again be put on hold.
