Authorized insurance intermediaries conduct business according to the stipulations of which sourcebook?

Authorized insurance intermediaries are required to conduct their business in compliance with the Insurance: Conduct of Business sourcebook, commonly known as ICOBS. This sourcebook is a set of regulatory requirements established by the Financial Conduct Authority (FCA) in the UK, aimed at ensuring fair treatment of customers within the insurance market. ICOBS covers a wide range of aspects related to the conduct of business, including product disclosure, suitability of products to customers, and transparency in communication.

By adhering to ICOBS, intermediaries ensure that they uphold the standards of professionalism, integrity, and consumer protection in their dealings, which is essential for maintaining trust in the insurance industry. This regulatory framework is particularly important given the complexities of insurance products and the necessity for clear communication regarding policy features and conditions to clients.

In contrast, while the Association of British Insurers and the British Insurance Brokers' Association represent industry interests and provide guidance, they do not impose the regulatory obligations that ICOBS does. The Financial Ombudsman Service serves as a dispute resolution mechanism for consumers but does not dictate how intermediaries must conduct their business. Hence, the sourcebook that directly mandates the conduct of authorized insurance intermediaries is indeed ICOBS.