DPB Licence – important changes

Does your practice operate under a DPB licence?

There are some important changes around the corner for practices that operate a Tax Fee Protection Insurance scheme under a DPB licence.

In this respect the ICAEW have just issued DPB update 11, which can be viewed by clicking here

The changes come into effect on the 1st Oct 2018 and have been prompted by the Insurance Distribution Directive, which aims to harmonise insurance regulation across Europe, creating a consistent regulatory framework.

We recommend that you read the full update

We recommend that you read the full update.  In particular firms operating a Tax Fee Protection Insurance scheme under a DPB licence need to consider the following, which will apply from the 1st Oct 2018:

  • There is an increase in the minimum level of Professional Indemnity Insurance required for a firm that operates a Tax Fee Protection Insurance under a DPB licence.  Qdos Vantage are able to provide competitive Professional Indemnity quotations, if you would like an alternative to your current provider.
  • You will need to provide clients with details of the amount of any commission, administration or service fee received by you in relation to your Tax Fee Protection Insurance scheme when you invite clients to purchase the insurance.
  • You will need to provide an Insurance Product Information Document when you invite clients to purchase the insurance. This is basically a summary and some key information about the Policy provided in a standard format (we will be able to provide you with a template document).

The ICAEW have confirmed that these changes will not be impacted by Brexit.

Your BDM will be able to discuss these changes in more detail with you at your scheme renewal and there are alternatives to providing Tax Fee Protection under a DPB licence.

However if you wish to discuss in the meantime please contact your BDM or call us on 0116 274 9123

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