The General Insurance Standards Council (GISC) has issued a revised timetable for the transition of ...
The General Insurance Standards Council (GISC) has issued a revised timetable for the transition of general insurance regulation from the GISC to the Financial Services Authority (FSA).
Regulation of general insurance will become statutory under the FSA within two years and 20 days following the adoption of the EU Insurance Mediation Directive. When the Directive is finalised the Treasury can consult on the scope of legislation for the UK. The FSA will then consult on rules to regulate those falling within its scope.
Chris Woodburn, chief executive of the GISC, said: 'The Treasury's consultation on draft legislation will not be published until September, or after the adoption of the EU Insurance Mediation Directive ' whichever is later.' The revised timetable is:
• September 2002: Draft legislation published for consultation.
• October 2002: FSA consultation starts.
• December 2002: FSA consultation (for both general insurance and mortgage advisers) covering threshold conditions for authorisation.
• First quarter, 2003: Legislation in Parliament and FSA consultation on conduct of business rules.
• Second half, 2003: Final FSA rules published.
• Second half, 2004: Legislation comes into force.
