Modification by consent: GEN, SYSC, TC, MIPRU, ICOBS, PROD and SUP

This modification disapplies certain requirements where an EEA firm operating a branch in the United Kingdom with a Part 4A permission to carry out regulated activities relating to non-investment insurance contracts, meets the 4 conditions set out in GEN2.2.26BR, GEN2.2.26CR, GEN 2.2.26ER and GEN2.2.26FR, as set out in the directions linked below.

Firms this modification applies to

This modification by consent is available to EEA Insurers and EEA Insurance Intermediaries with a Part 4A permission who, in summary, meet the following conditions. (Note this is a high-level summary of the conditions within the modification by consent. Firms must comply with the conditions as detailed within the legal direction setting out the modification by consent.)

Summary conditions specific to EEA Insurers:

• the regulated activities carried on by the UK branch are solely those:
  • necessary to assist with activities within the scope of the Insurance Distribution Directive (IDD) and any other insurance activities relating to the issuing of non-investment insurance contracts by the EEA office of the firm, and
  • relating to insurance risks where the state of the risk or state of commitment is in the EEA, and where the customer is also habitually resident in the EEA

Summary conditions specific to EEA Intermediaries:

• the regulated activities carried on by the UK branch are solely those: 
  • necessary to assist with activities within the scope of IDD in relation to non-investment insurance contracts by the EEA office of the firm, and
  • relating to insurance risks where the state of the risk or state of commitment is in the EEA, and where the customer is also habitually resident in the EEA

Summary conditions applicable to both EEA Insurers and Intermediaries:

• the firm must ensure that its UK branch does not have any contact with customers (including potential customers) unless the UK branch does so as representatives of the EEA office
• if the UK branch has any contact with customers, it must not give any indication to customers that UK regulation may be relevant
• the firm must ensure all its material communications makes it clear that its business is done from or for the EEA office, and any customers are customers of the EEA office
• the UK branch of the firm does not hold client money
• the firm’s EEA office home state regulator provides us with written confirmation that they are satisfied that what the firm is proposing is acceptable to them and in keeping with relevant home state national law requirements, relevant directives and regulations
• a person performing a senior management function of the firm notifies us immediately when it becomes aware, or has information which reasonably suggests, that the firm is failing or will fail, to satisfy one or more of the conditions within the direction

How this modification works

This modification by consent modifies or disapplies various sections of our Handbook and will reduce the regulatory burden on those firms that meet the conditions listed in the modification by consent directions. The firms in scope of the directions will continue to be subject to the EEA legislation and national laws in their home states.

We have set out the changes in detail in each modification direction:

Modification by consent for EEA Insurers (PDF)

Modification by consent for EEA Intermediaries (PDF)

These modifications are valid until 27 October 2027.

How to use this modification

You can take advantage of this modification by consent by:

• emailing [email protected] or
• writing to us: Central Waivers Team, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN

We will then write to you to confirm that the modification has been granted and publish each modification direction we grant on our website.