TC 4.2 Specified requirements for firms carrying on insurance distribution activities
1In this section, and the provisions in column 1 of TC 4.2.5R, relevant employees are employees and other persons:
- (1)
directly involved in the carrying on of the firm’s insurance distribution activities; or
- (2)
within the management structure responsible for the firm’s insurance distribution activities; or
- (3)
responsible for the supervision of a relevant employee acting in the capacity as set out in (1).
- (1)
is not restricted to an individual working under a contract of employment; and
- (2)
includes (without limitation) any natural or legal person whose services are placed at the disposal of the firm, under an arrangement between the firm and a third party; and
- (3)
also includes appointed representatives and their employees.
Column 1 |
Column 2 |
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Relevant rules or guidance |
Amendments either extending the scope, or adding and/or replacing rules and guidance in Column 1 |
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The provision is amended by adding after TC 2.1.1R(1): ‘A firm must ensure that a relevant employee’s appropriate knowledge and ability includes the requirements set out in SYSC 28.2.3R and is appropriate to the: (a) role and activity carried out by the relevant employee within the firm; and (b) type of distribution and the nature of the products sold.’ |
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The rules apply as if references to retail investment advisers included ‘relevant employees’. |
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(1) |
For firms whose relevant employees are not also retail investment advisers, the rule applies as if ‘35 hours’ was a reference to ‘15 hours’. |
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(2) |
The rule is amended by adding at the end: ‘Where the relevant employee is also a retail investment adviser, the minimum 35 hours appropriate continued professional development requirement in TC 2.1.15R must include a minimum 15 hours covering the requirements in SYSC 28.2.3R.’ |
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For relevant employees acting in that capacity, the guidance is replaced by the following: ‘To meet the requirements in TC 2.1.15R (as modified by TC 4.2.5R) a relevant employee’s continued training and development can encompass various types of facilitated learning opportunities including courses, e-learning and mentoring.’ |
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TC 2.1.18G, TC 2.1.19G, and TC 2.1.23G |
The guidance applies as if references to retail investment advisers included ‘relevant employees’. |
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The rule is amended by adding after TC 2.1.24R(2): ‘the firm must be in a position to make available to the FCA, on request, the name of the person responsible for this record keeping requirement.’ |
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The provision is amended by adding after TC 3.1.1R(3): ‘a firm must keep an up-to-date record of the continued professional training or development completed by each relevant employee in each 12 month period, |
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(a) |
for not less than 3 years after the relevant employee stops carrying out the activity; and |
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(b) |
the firm must be in a position to provide any version of the record to the FCA on request.’ |
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