Services to Freehold Landlords
We recognise that Freehold Landlords, who are frequently commercial investors, require the expertise of a professional Insurance company who can offer advice on up to date requirements of ever-increasing statutory legislation.
Freeholders, Property Managers & Developers
The Ferndale team arranges insurance for residential and mixed-use leasehold ⁄ Tenant owned property, and has an in depth understanding of the requirements of property owners and managing agents, whether they are employed by landlords or residents' management companies. We provide cover for mixed use as well as residential property, and specialise in leasehold ⁄ tenant owned residential accommodation. One of our main strengths is the efficiency with which we handle administration and claims, reducing the workload for property managers.
In early January 2005 regulation of the general insurance market passed to the Financial Services Authority, now replaced by The Financial Conduct Authority. There are a range of options for your business.
FCA regulations and how they affect you?
In order to sell general insurance, arrange or administer insurance for any of your customers you ARE affected.
If you wish to have a revenue stream from insurance you have three choices: to become an Authorised Firm (AF), OR become an Appointed Representative (AR) or an Introducer Appointed Representative (IAR) of an Authorised Firm
Authorised Firms (AF)
This route is sometimes the route chosen by managing agents with dedicated staff who already handle a large volume of insurance business.
FCA authorisation enables a firm to undertake specified regulated activities. These firms are answerable to the FCA for compliance and will be required to complete half-yearly returns and be subject to FCA audit. The FCA will expect all authorised firms to be able to demonstrate that they are compliant at any time and will require regular confirmation through reports and investigations.
AFs are liable for FCA fees, which will vary depending on the size of the firm, as well as the costs involved in becoming compliant and maintaining compliance.
Appointed Representatives (AR)
This is an option for managing agents with a reasonable level of insurance related income that they wish to protect ⁄ develop but which does not, however, have the infrastructure and/or sufficient levels of insurance-related income to support a full in-house insurance function.
The FCA allows an authorised firm to take responsibility for an appointed representative's insurance activities. The appointed representative must comply with FCA rules at all times, however, it is the authorised firm that will be held to account for any breaches. In other words, appointed representative status enables managing agents to continue to enjoy insurance-related income while outsourcing compliance management activity.
The authorised firm will specify what activities the appointed representative can and cannot undertake.
We have appointed Remus Management Limited as our Appointed Representative.
Introducer Appointed Representatives (IAR)
The role of an introducer is strictly limited and they are not allowed to advise on or administer insurance. However, it is the option that may be best suited to managing agents with a low level of insurance related income.
Introducers are restricted to passing on information and contact details; they cannot express an opinion or give insurance advice. In many cases, this means that a managing agent will not be able to offer the same level of service that clients are accustomed to.
We currently have arrangements with several Significant Players to act as our Introducer Appointed Representatives (IAR).
This type of relationship is beneficial to all involved and allows IARs and their customers to receive beneficial insurance rates while leaving the burden of regulation and compliance with ourselves.