MIPRU 2.2 Allocation of the responsibility for insurance mediation activity
Responsibility for insurance mediation activity
A firm3, other than a sole trader, must allocate the responsibility for the firm's insurance mediation activity to a director or senior manager.
3[Note: Article 3(1), fourth paragraph, of the Insurance Mediation Directive1]
1The firm may allocate the responsibility for its insurance mediation activity to an approved person (or persons) performing:
- (1)
a governing function (other than the non-executive director function); or
- (2)
- (3)
the significant management function in so far as it relates to dealing in investments as principal, disregarding article 15 of the Regulated Activities Order (Absence of holding out etc) (or agreeing to do so) or an activity which is not designated investment business.2
2
- (1)
Typically a firm3 will appoint a person performing a governing function (other than the non-executive director function) to direct its insurance mediation activity. Where this responsibility is allocated to a person performing another function, the person performing the apportionment and oversight function with responsibility for the apportionment of responsibilities must ensure that the firm's insurance mediation activity is appropriately allocated.
3 - (2)
The descriptions of significant influence functions, other than the required functions, do not extend to activities carried on by an insurance intermediary with permission only to carry on insurance mediation activity and whose principal purpose is to carry on activities other than regulated activities (see SUP 10.1.21 R). In this case, the firm may allocate the responsibility for the firm's insurance mediation activity to one or more of the persons performing the apportionment and oversight function who will be required to be an approved person.
- (3)
In the case of a sole trader, the sole trader will be responsible for the firm's insurance mediation activity.
2
Where a firm has appointed an appointed representative to carry on insurance mediation activity on its behalf, the person responsible for the firm's insurance mediation activity will also be responsible for the insurance mediation activity carried on by an appointed representative.
The FSA will specify in the FSA Register the name of the persons to whom the responsibility for the firm's insurance mediation activity has been allocated. by inserting after the relevant controlled function the words "(insurance mediation)". In the case of a sole trader, the FSA will specify in the FSA Register the name of the sole trader as the 'contact person' in the firm.