Regulatory Alerts2015-03-30
Added · Updated
Notice FAA-N19 Distribution of Direct Purchase Insurance Products
This Notice, issued under section 58 of the Financial Advisers Act, establishes requirements for licensed and exempt financial advisers and their representatives distributing Direct Purchase Insurance Products (DPI). It mandates distribution through representatives, customer service officers, or online direct channels, with Tier 1 life insurers also required to offer distribution at their principal place of business or branch office. Financial advisers must implement safeguards, provide specific product information, establish client query avenues, and implement internal policies including training and controls. The FAA-N19 (Amendment) 2019 took effect on 30 August 2019, with transitional provisions allowing prior requirements for online direct channels to apply until 31 December 2019 for those distributing DPI online before the amendment date.