International Adviser understands that Nexus Insurance Brokers, AES International, Globaleye, Prosperity and other leading brokers in the country have begun discussions to form the association, with the explicit aim of representing the interests of licensed firms in the changing regulatory environment.
While not yet officially agreed, the mission statement of the association is understood to be: “To serve the needs of UAE-regulated (authorised) independent financial advisers so as to improve the financial services advisory profession in and from the UAE.”
Specifically, the association aims to promote regulated insurance activities in the region to consumers and to “diminish the scope for unregulated IFAs and unlicensed providers”.
The association also intends to be the “principal organisation representing regulated (UAE IA-authorised) IFAs’ views to UAE government departments and agencies” and to “encourage the expansion of the UAE market for providers using regulated IFAs”.
Timing
The timing of the inception of the association is particularly pertinent as the new IA laws come into force on 28 November and will have a substantial impact on insurance brokerages.
In addition to increasing the amount a brokerage is required to hold as paid-up capital, the new rules will mean firms must have separate positions within the organisation, such as a distinct operations manager and internal auditor.
Friends Provident International, which is understood to have offered to support the organisation, said the planned association indicated how the market is continuing to mature “alongside a rapidly developing regulatory landscape”.
Marcus Gent, managing director Middle East and rest of the world for FPI, added: “We think this new initiative will benefit advisers, life companies and, most importantly, the end customer, and it has our full support.”
