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Firstly, we must emphasis that the FSA is only concerned with insurance. The Scallywags preventative treatment scheme is not affected. It is only the insurance element of the scheme which falls within the new regulations. There are a number of options for organisations, such as vet practices, that are involved in insurance as a secondary activity. You can:
Option 2 transfers the responsibility for compliance to an authorised firm or Principal but only allows the AR to act on behalf of that one firm. Theoretically it is possible for an AR to have more than one Principal, but even the FSA admits that the rules make it impractical. Firms appointing ARs are most likely to require an exclusive agreement.Option 3 is the one we favour as we believe it is important for vets to retain their independence and to provide their clients with information on an impartial basis.To ensure that your staff are not required to carry out any regulated activities in future, we need to make a number of changes to the way Scallywags operates.
Remember, the promotion and recommendation of your Scallywags monthly preventative scheme is NOT a regulated activity . Claims In the last quarter of this year we will write to all Scallywag members and explain the coming changes. As part of this mailing we will include a claim form, freepost envelope and information on how to make a claim under their policy. When an insured animal needs treatment, the owner will complete the claim form (or ring/email us for a replacement if it has been lost) and send it to us with the account. The form will ask the client to specify to whom the payment should be sent so they can either settle your account and recover the money from us or ask us to settle with you directly. Each claim will be settled individually as soon as it has been processed and the owner will be advised when a payment has been sent to their vet. A new scheme guide is being prepared ready for distribution in December. This will give you all the detailed information you will need to continue and grow your Scallywag scheme next year—and to avoid trespassing into regulated territory!
For further information on the impact of FSA regulation, download the FSA fact sheet or visit the FSA web site Back to the top |
Harvington Underwriting Ltd and Harvington Services Ltd are independent insurance intermediaries, authorised and regulated by The Financial Services Authority.
Contact us : Telephone: 01386 442722 Fax: 01386 421155 Post :
Harvington Underwriting Ltd., Email: information@harvington.co.uk
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In case the news has passed you by, changes are on the way for the whole of
the General Insurance industry. From 14th January 2005, the sale and
administration of general insurance will come under the regulation of the Financial
Services Authority. The change
in regulation was announced by HM Treasury in December 2001—and the final
rules were published in January 2004. The rather misleadingly named “Handbook”
which contains the rules would, if printed in full, stand over 9ft high—so I
hope you will excuse us having taken a few weeks to clarify the implications
for pet insurance generally and Scallywags in particular.
