SCHEDULE
Regulation 2
CODE OF CONDUCT DRAWN UP BY THE INSURANCE BROKERS REGISTRATION COUNCIL PURSUANT TO SECTION 10 OF THE INSURANCE BROKERS (REGISTRATION) ACT 1977
Words and expressions used in this Code of Conduct shall have the meaning ascribed to them by the Insurance Brokers (Registration) Act 1977 (“the Act”) except that:
“insurance broker” means practising insurance broker, registered insurance broker or enrolled body corporate;
“insurance broking business” and references to businesses carried on by an insurance broker shall mean all aspects of the business conducted by a practising insurance broker or enrolled body corporate and includes, for example, investment business as defined by the Financial Services Act 1986, Schedule 13;
“insurer” means a person or body of persons carrying on insurance business;
“advertisement” shall have the meaning ascribed to it by Section 207(2) of the Financial Services Act 1986 and “advertising” shall be construed accordingly;
“appointed representative” shall have the meaning ascribed to it by Section 44 of the Financial Services Act 1986;
“relevant investment business” shall have the meaning ascribed to it by the Insurance Brokers Registration Council (Conduct of Investment Business) Rules 19884.
1. The Act provides for the registration of insurance brokers and for the regulation of their professional standards. The objective of the Code of Conduct is to establish a recognised standard of professional conduct to which all insurance brokers should, in the interests of the public and in the performance of their duties, conform and in doing so they should bear in mind this objective and the underlying spirit of this Code.
The Code is not exhaustive or all embracing and while it shall serve as a guide to insurance brokers and other persons concerned with their conduct nevertheless the mention or the lack of mention in it of a particular act or omission shall not be taken as conclusive of any question of professional conduct.
Apart from this Code insurance brokers authorised by the Council to advise or effect transactions on relevant investment business are also required to comply with any rules made by the Council for the conduct of investment business under the Financial Services Act 1986.
Claims against insurance brokers for compensation arising from acts or omissions amounting to negligence are matters for determination by the Courts. Nevertheless, acts of gross negligence or repeated acts of negligence may amount to unprofessional conduct and notwithstanding that the matter may be the subject of legal proceedings, the Council may still investigate the conduct of the insurance broker.
2. In the opinion of the Council, the fundamental principles governing the professional conduct of insurance brokers are shown below in paragraphs A to H. Any act or omission done or made by insurance brokers in breach of these fundamental principles may, in the opinion of the Council, constitute unprofessional conduct.
(A) Insurance brokers shall at all times conduct business with utmost good faith and integrity.
(B) Insurance brokers shall do everything possible to satisfy the requirements of clients and shall, subject to Principle C, place the interests of clients before all other considerations. Subject to these requirements and interests, insurance brokers shall have proper regard for others.
(C) Insurance brokers shall not directly or indirectly do anything in the course of practising as insurance brokers which compromises or impairs, or is likely to compromise or impair, the good repute of insurance brokers or the insurance broking profession.
(D) Statements made by or on behalf of insurance brokers when advertising shall not be misleading or extravagant.
(E) Insurance brokers shall conduct their relationship with the Council, their professional body, with propriety.
(F) Insurance brokers shall organise and control the internal affairs of their insurance broking business in a responsible manner, and where staff are employed ensure that they are competent, suitable, and under adequate day-to-day supervision by a registered insurance broker.
(G) Insurance brokers should be familiar with, and in carrying on business should be mindful of guidance as to proper...
