DPB licence and IDA licence
A firm with a DPB licence can provide advice on investments to business clients only. For example, this might include providing advice to trustees of pension schemes and employers.
A firm with an IDA licence can undertake insurance distribution activity for business clients only. The definition of insurance distribution activity is included in the DPB Handbook but broadly includes activities in relation to contracts of insurance.
In both cases the regulated activity must be incidental to their core professional practice. And regulated activity carried out for each client must be arising out of or complementary to other professional services provided to that client.
Authorised Professional Firm (APF) licence
If your firm recommends the purchase of specific investments (eg pensions, listed company shares) or approves financial promotions or gives advice to individuals, they will need a licence from the Financial Conduct Authority either in the form of a full FCA licence or an APF licence from the IFoA.
All firms licenced by the IFoA as a DPB must hold a minimum level of professional indemnity insurance.
For more details, please view the DPB Handbook (PDF, 1.3 MB).
