Name one major regulation affecting insurance brokers in the UK.

The Insurance Distribution Directive (IDD) is a significant regulation impacting insurance brokers in the UK as it establishes a comprehensive framework for the distribution of insurance products across Europe. Implemented to harmonize regulation, the IDD aims to enhance consumer protection and increase the level of professionalism among insurance distributors.

The IDD sets out clear rules regarding the conduct of insurance brokers, including the need for transparency in communication with clients, the obligation to provide clear information about insurance products, and the requirement to treat customers fairly throughout the insurance process. This directive also requires brokers to possess relevant knowledge and skills, thereby ensuring that they adequately serve their clients.

In contrast, while the Financial Services Act, Consumer Rights Act, and Banking Act are important legal frameworks within the wider financial services industry, they do not focus specifically on the distribution of insurance products or the role of insurance brokers in the same way the IDD does. The IDD directly addresses the specific practices and responsibilities that insurance brokers must adhere to, making it the most relevant regulation in this context.