Content Options

CONC 14.1 Application

CONC 14.1.1 R

This chapter applies to a firm with respect to a credit-related regulated activity.

Requirements

CONC 14.1.2 R

A firm must not appoint an individual, who is not an authorised person or an exempt person, to act as an agent of the firm, in carrying on regulated activities of the firm unless all of the following conditions are met at the date of the individual's appointment and while the individual continues to act as the firm's agent:

  1. (1)

    the firm appoints the individual as the firm's agent;

  2. (2)

    the individual works as agent only for the firm and not as agent for any other principal;

  3. (3)

    the firm has a written contract with the individual which:

    1. (a)

      sets out effective measures for the firm to control the individual's activities when acting on its behalf in the course of its business; and

    2. (b)

      requires the individual to make clear to customers that the individual is representing the firm as the individual's principal and the name of the firm;

  4. (4)

    (in the case of collecting debts) receipt of repayments by the individual is treated as receipt by the firm; and

  5. (5)

    the firm accepts full responsibility for the conduct of the individual when the individual is acting on the firm's behalf in the course of the firm's business.

CONC 14.1.3 G
  1. (1)

    A firm in CONC 14.1.2 R would need to have a Part 4A permission for every activity the individual carries on as its agent for which the firm would need permission if it were carrying on the activity itself.1

  2. (2)

    CONC 14 uses the expression "individual" in its natural meaning as referring to a single human being.1

CONC 14.1.4 R

Where a firm appoints an agent in accordance with CONC 14.1.2 R to carry on the business of the firm:

  1. (1)

    the firm must establish, implement and maintain adequate policies and procedures sufficient to ensure compliance of the agent with the firm's obligations under the regulatory system; and

  2. (2)

    the firm must take all reasonable steps to identify conflicts of interest between the agent and a client of the firm that arise or may arise in the course of the firm carrying on regulated activities or ancillary activities.