What is insurance for the purposes of the exemption?: the regulation of insurance: permission under Section IV of the Financial Services and Markets Act (FSMA)
Previously all persons carrying on insurance business had to be authorised to do so under the ICA Part 1, section 2 unless specifically relieved from doing so. Those not requiring authorisation included:
- members of Lloyd’s (see VATINS4000);
- a body registered under the enactments relating to friendly societies;
- a trade union or employers’ association where the insurance business carried on by the union or the association is limited to the provision for its members of provident benefits;
- persons authorised by the Treasury; and
- companies authorised to write business in another EU or EFTA member state.
- Persons authorised under the ICA 1982 had automatic permission under SI 2001/2636 FSMA 2000 (Transitional Provisions) to carry on their business of insurance after the introduction of the FSMA 2000.
- For those wishing to enter the insurance market after 30 November 2001 and engage in this regulated activity, permission under Part IV FSMA 2000 has to be sought from the CSA. Section 38 FSMA sets out the persons who are exempt from the requirement for authorisation to carry on regulated activities.