Insurance Bill Update - February 2015

The Insurance Bill, which was introduced into the UK Parliament in July 2014 proposes to reform areas such as disclosure in business insurance, warranties and an insurer's remedies for fraudulent claims. The Bill will introduce new law (replacing the existing common law) and will also amend parts of the Marine Insurance Act 1906 (the MIA 1906).

The Insurance Bill has now transferred from the House of Lords - which had convened a Public Bill Committee to scrutinise the Bill, to the House of Commons. The Committee commented that several stakeholders have asked how the duty of fair presentation would apply where a single insurance contract covers a number of different people and/or legal entities. In response, the Committee has published a note, setting out its interpretation of the current law and the position under the Insurance Bill. It could be enacted before the current session of Parliament finishes on 30 March 2015 and then come into force before the end of 2016.

FCA consults on policy proposals for 2015/16 regulatory fees and levies

In November, the FCA issued its annual Consultation Paper on policy proposals for regulatory fees and levies for 2015/16. As well as changes to regulatory fees relating to consumer credit activities, the Paper includes a proposal to amend the FCA's definition of annual income for fee calculation purposes to make it clear that such income must include the earnings of Appointed Representatives when conducting regulated business.