Impact of Brexit on Irish Brokers with Clients based in the UK

Wed Apr 7 2021

Impact of Brexit on Irish Brokers with clients based in the UK, who have risks in Ireland, such as holiday homes.

Once the UK left the EU the rules changed in respect of dealing with UK clients regardless of where their insurance risk is located.

Passporting[1] allows for regulated entities in one member state to sell/provide advice to clients in other member states without actually setting up and being separately regulated there.  In some cases, depending on where the regulated entity is located, as well as where the client and the risk are located, and provided that no soliciting took place by the regulated entity, the regulated entity may be permitted to provide their services to a client in another member state without advising their supervisory authority of their intention to do so.  For example, a person in the North could contact a broker in the South advising that they have a holiday home in the South and would like to arrange cover for it.  In this scenario, (Pre-Brexit) the broker would be permitted to place that risk[2].

Unfortunately for a number of our members Brexit has negatively impacted on providing cover in respect of this type of transaction.  The FCA does not allow for non-UK established regulated entities[3] to place risks on behalf of UK residents/businesses.  The regulated entity must be established and authorised by the FCA in order to do so.   Therefore, since 31 December last, using the above example, the broker in the South is not permitted to renew cover on holiday homes for UK residents.

Brokers Ireland will continue to keep members up to date on developments in this area.  For further enqueries, please contact us at

[1] This would be permitted once the EU regulated entity advised their home state regulator of their intention to provide their services into another member state on a freedom of services basis.  The home state regulator would advise the host state regulator of the regulated entity’s intention. 

[2] A key element of this type of transaction, is that the broker does not solicit the business.  The contact must be initiated by the client, otherwise it is not permitted.  The broker is not however permitted to invite renewal of the contract as this would be seen as soliciting. 

[3] There is one exception to this general rule which includes ‘reverse branching’.  This is where an EU regulated entity has set up a physical branch in the UK.

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