BCR Legal Group Limited

Limits on what they may do

• Restriction on placing business with, or providing services to, overseas insurance undertakings

  Business Restriction 1) The Firm must not carry on any activities, whether regulated or otherwise, in the UK, where those activities: a) are carried on for, or on behalf of, an overseas insurance undertaking; and b) would lead that insurance undertaking to be effecting or carrying out a contract of insurance in the UK. This includes effecting new policies and renewing any existing policies and applies to activities whether carried on by the Firm directly or through its Appointed Representatives. 2) The requirement in (1) applies in relation to any overseas insurance undertaking which, as a result of the activities of the Firm or where it would be reasonably expected for the Firm to conclude, requires but does not have FSMA authorisation to carry on insurance business in the UK. 3) The Firm must not enter into any arrangements with an overseas insurance undertaking where the Firm would be acting for or on behalf of that insurance undertaking in the UK in relation to that insurance undertaking effecting or carrying out a contract of insurance unless: a) the Firm has taken all appropriate steps to identify that the arrangement would not involve the insurance undertaking carrying on regulated activity in the UK for which it would need FSMA authorisation; b) the Firm has given notice of the arrangements to the FCA including providing the analysis in 3(a). Transition Period 4) The Firm may, until 31 August 2024, continue to carry on activities on behalf of an overseas insurance undertaking (which would otherwise be restricted under (1)–(3)): a) in relation to policies arranged by the Firm that were in force prior to the Effective Date; b) where the provision of those activities by the Firm is necessary for the relevant overseas insurance undertaking to carry out those contracts. 5) The time period under which the Firm may provide the activities under (4) will be treated as extended by an amount of time specified by the FCA where: a) the Firm has requested consent from the FCA to extend this time period with explanation of: i) why the overseas insurance undertaking has been unable to put in place arrangements to provide these services through alternative means; ii) how the cessation of those services would result in material detriment to UK customers; iii) the steps being taken to ensure there is a reasonable prospect of the overseas insurance undertaking putting in place alternative arrangements and its time frame; b) the FCA has given its consent to the time period being extended. Notification to insurers 6) The Firm must notify any overseas insurance undertakings with whom it, or its Appointed Representatives, placed the relevant business or have arrangements under which they could place relevant business of the effect of the restrictions in (1)–(3). Past Business Review 7) The Firm must carry out a Past Business Review in relation to the relevant business. 8) The review in (7) must: a) identify any customer with or for whom the Firm or its Appointed Representatives arranged or placed a policy with an overseas insurer in circumstances under which the overseas insurance undertaking would have properly been regarded as having effected or carried out the insurance contract in the UK; b) notify these customers in writing; c) identify whether there is a risk of customer harm; 9) Where the Firm identifies any risk of harm to existing customers it must provide the FCA with a copy of its remediation plan for those customers. Definitions 10) In this application: Overseas insurance undertaking: An insurance undertaking which has its registered office (or, if it has no registered office, its head office) outside the United Kingdom and is not a FSMA authorised person Relevant business: Insurance policies arranged or placed by the Firm, whether directly or through its Appointed Representatives, that were effected by an overseas insurance undertaking, for a customer falling within (8)(a)