MIGI 2

Overview of the Handbook

MIGI 2.1

Introduction

MIGI 2.1.1

See Notes

handbook-guidance
This chapter provides an overview of the Handbook and explains:
(1) which parts of the Handbook apply to mortgage and insurance intermediaries;
(2) how the Handbook is structured; and
(3) how to interpret rules, guidance and evidential provisions in the Handbook.

MIGI 2.2

Content of the Handbook

Where can you find the rules that apply to mortgage and insurance intermediaries?

MIGI 2.2.1

See Notes

handbook-guidance
The Handbook can be found:
(1) on our website (www.fsa.gov.uk) and
(2) on the CD-ROMs sent to all authorised firms at the end of any month in which the Handbook is amended.
You can buy paper copies from our Publications Order Helpline or order online through our website. The contents are the same in each medium.

MIGI 2.2.2

See Notes

handbook-guidance
Most of the new requirements for mortgage and general insurance intermediaries are finalised. However, many of these requirements will not be incorporated into the FSA Handbook until just before regulation starts. The rules that are not already in the Handbook have been published in several documents available on the FSA website at www.fsa.gov.uk/mgi.

MIGI 2.2.3

See Notes

handbook-guidance
Until regulation starts you should use the table available at www.fsa.gov.uk/mgi/jigsaw.html as a navigation tool around the sourcebooks and manuals that make up the Handbook and any amendments or new requirements that apply to your firm.

MIGI 2.2.4

See Notes

handbook-guidance
The table provides links to:
(1) sections of the existing Handbook that will apply to some, or all, of your firm's mortgage or insurance mediation activities;
(2) amendments to existing sections of the Handbook;
(3) the new requirements specific to these activities; and
(4) any Frequently Asked Questions or other helpful guidance relating to particular requirements.
In addition, the Enforcement manual (ENF), Decision making manual (DEC) and Complaints against the FSA manual (COAF) contain information about the FSA's policies and procedures which will be of relevance to small mortgage and insurance intermediaries in certain circumstances. These manuals are not covered in the Guide but you can find further information about them on our website (www.fsa.gov.uk/).

Which parts of the Handbook apply to mortgage and insurance intermediaries?

MIGI 2.2.5

See Notes

handbook-guidance
Only some of our rules apply to mortgage and insurance intermediaries. The table below provides an overview of the Handbook for small mortgage and insurance intermediaries to highlight which parts will be most relevant to them, and where they are covered in the Guide. There will be some variation, as not all mortgage and insurance intermediaries undertake identical business or have permission to carry on the same regulated activities.

How are the sourcebooks and manuals structured?

MIGI 2.2.6

See Notes

handbook-guidance
Overview of contents of the Handbook:

Parts of the Handbook not covered in this Guide

MIGI 2.2.7

See Notes

handbook-guidance
In addition, the Enforcement manual (ENF), Decision making manual (DEC) and Complaints against the FSA manual (COAF) contain information about the FSA's policies and procedures which will be of relevance to small mortgage and insurance intermediaries in certain circumstances. These manuals are not covered in the Guide but you can find further information about them on our website (www.fsa.gov.uk).

MIGI 2.2.8

See Notes

handbook-guidance
The following sourcebooks are unlikely to apply to small firms doing only mortgage and insurance mediation activities:
(1) ML (Money Laundering): the arrangements firms must have in place to prevent money laundering occurring; however, see Part 1, Chapter 15 for further information on what we do require of mortgage and insurance intermediaries in relation to financial crime.
(2) MAR (Market conduct): the requirements to ensure fair play in the market.
(3) COB (Conduct of Business): the requirements relating to business processes for firms carrying on regulated activities that are not covered by MCOB or ICOB.
(4) The interim prudential sourcebooks: these explain the financial resources requirements for firms carrying on FSA regulated activities other than mortgage and insurance mediation activities. The rules in these sourcebooks are interim rules that will be replaced in 2007.
(5) The specialist sourcebooks: these sourcebooks show how the Handbook applies to certain sectors, such as collective investment schemes and credit unions. If your firm is a member of a designated professional body, such as the Law Society, you will need to read the Professional Firms sourcebook (PROF).

MIGI 2.2.9

See Notes

handbook-guidance
Any word that is in italics in the Handbook is defined in the Handbook Glossary.

MIGI 2.2.10

See Notes

handbook-guidance
There is no index to the Handbook, however our website and CD-ROM contain search facilities that can be used to find particular words and phrases.

How do you install the CD-Rom?

MIGI 2.2.11

See Notes

handbook-guidance
A rule at the beginning of each chapter of the Handbook identifies those firms to which it applies. For example, PRU 9.1.1R states "This section applies to a firm with a permission to carry on insurance intermediary activity". So it is recommended that you read the application rule first before looking at the rest of the chapter, checking the terms in italics with the Handbook Glossary, where necessary.

MIGI 2.2.12

See Notes

handbook-guidance
There are tables of information at the end of each sourcebook or manual. These are numbered consistently throughout the Handbook and provide a summary of requirements as set out below.

MIGI 2.2.13

See Notes

handbook-guidance
Schedules of information at the end of each sourcebook or manual:

How do you install the CD-ROM?

MIGI 2.2.14

See Notes

handbook-guidance
When you first install the CD-ROM, selecting 'Preferences' enables you to select the entire Handbook or one or more sourcebooks or manuals, so allowing you to refine your search within the Handbook. Tick each sourcebook or manual to select it for your search. You can amend your selection whenever you wish. This function does not remove any content from the CD-ROM.

MIGI 2.3

Interpreting the Handbook

What is the difference between rules and guidance?

MIGI 2.3.1

See Notes

handbook-guidance
We have prepared a Reader's Guide to help firms generally to navigate the Handbook. You can access it via the CD-ROM (by clicking on 'Handbook') and on our website (by clicking on 'FSA Handbook' and scrolling down the page).

MIGI 2.3.2

See Notes

handbook-guidance
As explained more fully in the Reader's Guide, the provisions in the Handbook do not all have the same status. The difference between Rules and Guidance is important. The Rules in the Handbook (marked with an 'R') create binding obligations on firms. If a firm breaches such a rule, it may be subject to enforcement action and in some circumstances to an action for damages.

MIGI 2.3.3

See Notes

handbook-guidance
Guidance in the Handbook (marked with a 'G') is general Guidance given to more than one firm or individual. Guidance is not binding on a firm. As long as a firm follows Guidance that indicates possible means of compliance with a rule or recommends a course of action or arrangement, we intend to proceed on the basis that the firm has complied with the relevant Handbook rule. A firm may find that Guidance is a helpful indication of how compliance with a Rule may be achieved without devising its own approach to that Rule.

MIGI 2.3.4

See Notes

handbook-guidance
There are also Evidential Provisions. These are rules but they are not binding in their own right - they are marked with a status letter 'E' in the margin or header. You can find a more detailed explanation in the Reader's Guide.