H.&P. Car Sales Limited

the Central Bank has in the past and will continue in the future to focus on promoting compliance in this area by taking action where non-compliance is discovered with the aim of raising professional standards across the industry. Retail Intermediaries should note that a failure to comply with this key regulatory requirement is unacceptable to the Central Bank and will lead to supervisory intervention, up to and including the imposition of fines and the potential involuntary revocation of the intermediary’s authorisation. Retail Intermediaries should be aware that “The Handbook of Prudential Requirements for Investment Intermediaries (the “2014 Handbook”), which became effective on 1 October 2014, requires all investment intermediaries (as defined in the 2014 Handbook) to hold PII which mirrors the requirements set out within the European Communities (Insurance Mediation) Regulations, 2005 expanding their obligations in this regard. Retail Intermediaries who have questions regarding the obligations in this area should refer to the “Guidance for Retail Intermediaries on the requirements to hold Professional Indemnity Insurance Cover” issued by the Central Bank in October 2015”. Prescribed Contravention Regulation 17 of the European Communities (Insurance Mediation) Regulations 2005 (the “Regulations”) requires that every insurance intermediary hold professional indemnity insurance on a continuous basis. The Central Bank views non-compliance with this statutory requirement to hold professional indemnity insurance seriously, as non-compliance represents a failure to provide consumers with key protections afforded to them under the Regulations in their dealings insurance intermediaries.