Solicitors will not need to comply with the new European Insurance Distribution Directive until later this year, the Solcitors Regulation Authority has confirmed.
The directive, which strengthens protections in place for clients of law firms, was due to be applicable from 23 February 2018 but has now been delayed until at least 1 October 2018.
This could move further depending on discussions between various European organisations. A revised timetable will now be voted on by the European Parliament on this Thrusday, 1 March 2018.
The directive will mean firms carrying on insurance distribution activities will need to change the way they work.
Firms working in personal injury and conveyancing or probate are most likely to be affected as, for example, they might arrange after-the-event insurance in a personal injury matter or defective title insurance in a conveyance.
There might be other insurance products that firms advise on, or arrange for their clients, to which this will apply. The SRA advised all firms to assess their own individual practices to see if the new directive impacts upon them once it comes into force.
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