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An independent intermediary acts as the agent if his
client and not on behalf of the life company. |
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An independent intermediary must offer or advise on
the products available throughout the entire market. The advice to
investors must be unbiased and any products recommended must be the most
suitable for the particular client. The intermediary must also insure
that, in his opinion, there is no other product available which could
suit the client's investment needs more advantageously. Most
intermediaries dealing with life insurance obtain authorisation to carry
on business from the Personal Investment Authority (PIA). |
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Intermediaries who comply with the code of practice
can be registered with the Insurance Brokers Registration Council (IBRC)
and may legally describe themselves as 'insurance brokers'. Brokers
whose life insurance, pensions and unit trust business does not exceed
49 per cent of their total income may obtain authorisation to carry out
such business from IBRC as a Recognised Professional Body (RPB). |
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Depending on the level of authorisation under PIA the
firm may carry out activities where money is paid to the firm for
investment purposes on behalf of clients. Brokers authorised through
IBRC are not permitted to handle client money in this way. |
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Some intermediaries such as solicitors and
accountants whose main business is not that of giving advice and selling
investments may be granted authorisation by a Recognised Professional
Body such as the Law Society or the Institute of Chartered Accountants.
In all cases the authorising body has rules and regulations for the
conduct of business and dealings with investors. |
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Intermediaries are normally remunerated by commission
paid to them by the life companies. |