Category: Group risk regulation · Reviewed by Jake Leat, Associate Director · Last reviewed 2026-06-10
The FCA Handbook contains the conduct rules applicable to firms carrying on insurance distribution (broking, advising, dealing) in the UK. The principal sourcebooks affecting group risk and protection distribution are: ICOBS (Insurance: Conduct of Business sourcebook); SYSC (Senior Management Arrangements, Systems and Controls); PRIN (Principles for Businesses); CASS 5 (Client money in respect of insurance); and the high-level provisions of the Senior Managers and Certification Regime in SUP and SYSC.
Category: Group risk regulation Also known as: FCA insurance distribution rules Sourcebooks: ICOBS, SYSC, PRIN, CASS 5 Related concepts: ICOBS Insurance Conduct of Business Sourcebook, ICOBS 5 product information, ICOBS 6 product information for non-investment insurance, IDD demands and needs statement
The FCA Handbook implements the Insurance Distribution Directive (IDD; Directive (EU) 2016/97) into UK law, supplemented by domestic provisions. UK firms must hold authorisation under Part 4A of the Financial Services and Markets Act 2000 to carry on insurance distribution, and must comply with the Handbook rules as well as the Threshold Conditions in COND and the regulatory reporting requirements in SUP 16.
Primary legislation: Financial Services and Markets Act 2000; FSMA 2000 (Regulated Activities) Order 2001 (SI 2001/544). The IDD was transposed by amendments to the FCA Handbook effective 1 October 2018. UK-specific rules (some retained as on-shored EU law under the European Union (Withdrawal) Act 2018) include Consumer Duty in PRIN 2A, fair value assessment requirements, and the Senior Managers and Certification Regime.
ICOBS applies to firms distributing non-investment insurance contracts (including group risk and protection). Key parts include: ICOBS 2 (general matters); ICOBS 4 (information about the firm); ICOBS 5 (identifying client demands and needs); ICOBS 6 (product information); ICOBS 7 (cancellation); ICOBS 8 (claims handling); ICOBS 9 (renewal). SYSC governs internal organisation. PRIN sets out 12 high-level principles.
A group risk broker advising an employer must: (i) under ICOBS 5, identify the employer’s demands and needs and produce a written statement; (ii) under ICOBS 6, provide product information meeting the IDD requirements; (iii) under ICOBS 4, disclose its status and remuneration; (iv) under SYSC, maintain governance and conduct standards; (v) under PRIN, observe the high-level principles including treating customers fairly.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
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