On 29 November 2024, the Central Bank of Ireland (Central Bank) published its second newsletter for 2024 for the retail intermediary sector in Ireland (Newsletter).
The Newsletter contains notable updates on a range of regulatory developments and topics impacting the retail intermediary sector. Interestingly, it has now been expanded to include MiFID Investment Firms and is called the ‘Investment Firm and Intermediary Newsletter’. This article briefly highlights some of the main takeaways from the Newsletter for (re)insurance intermediaries.
Thematic Review on Fair or Limited Analysis of the Market
The Central Bank is currently conducting a thematic review focusing on whether retail intermediaries provide services to consumers based on a ‘fair’ or a ‘limited’ analysis of the market as defined in the Consumer Protection Code. This review will form part of the Central Bank’s overall strategy in addressing the material risks of transparency and ineffective disclosures to consumers. The first phase of the review involved a brief survey issued to all firms in August 2024, and the second phase is underway involving a desk-based questionnaire issued to a sample of firms with follow-up meetings planned for Q4, 2024 and Q1, 2025. The outcome of the thematic review is expected in 2025.
Key Person Risk in Small Firms
In the Newsletter, the Central Bank highlights the importance of managing operational resilience. In particular, the Central Bank highlights that smaller, one-person dependent firms can face difficulties in circumstances of unplanned absences from work for various reasons (e.g., illness, death, etc.) that may lead to consumer detriment. In anticipation of this scenario, the Central Bank expects firms to develop contingency plans to allow essential services to continue.
In particular, the Central Bank expects firms to take the following steps:
- Notify the Central Bank as soon as practicable.
- Nominate an alternative point of contact if required.
- Communicate any disruption of service to affected consumers to enable them to make alternative arrangements.
- Inform the consumer in a timely manner as to how the firm will provide continuity of service.
The Central Bank urges firms to seek advice on implementing an appropriate plan to ensure continuity of services to their customers.
New Notification Form for Shareholder Changes
The Newsletter contains a brief reference to a new notification form recently published on the Central Bank’s website for use by (re)insurance intermediaries to notify it of material changes to shareholdings under Regulation 12 of the European Union (Insurance Distribution) Regulations 2018. The new form includes a relatively detailed set of questions to be addressed as part of the notification.
New Online Authorisation Application Process
In September 2024, the Central Bank launched an online application form for prospective applicants seeking authorisation as a Retail Intermediary using ‘A-Form’. This new form aims to provide an enhanced and streamlined process for applicants. The Central Bank will continue to accept the A-Form in Word format. Depending on the success of this new process, the Central Bank hopes that B-Form applications may be similarly streamlined in due course.
Other Topics
Other topics of interest addressed in the Newsletter include:
- An update on the recent changes to the Professional Indemnity Insurance limits;
- Common submission issues for intermediaries filing their Annual Returns;
- Reminder on revocation process concerning authorisations/registrations no longer required;
- Fitness and Probity updates; and
- A brief update on the EU’s Retail Investment Strategy
The Newsletter may be viewed here, and presentation slides from the recent Retail Intermediary Roadshow hosted by the Central Bank are available on its website here.
If you have any questions on the topics discussed in this article, please contact Ian Murray or a member of the William Fry Insurance team.
Contributed by Róisín Casey.
