MIPRU 2.2 Allocation of the responsibility for insurance mediation activity or MCD credit intermediation activity4
Responsibility for insurance mediation activity or MCD credit intermediation activity4
A firm3, other than a sole trader, must allocate the responsibility for the firm's insurance mediation activity or MCD credit intermediation activity4 to a director or senior manager.
3[Note: Article 3(1), fourth paragraph, of the Insurance Mediation Directive1and article 29(4)(a), first sentence, of the MCD.4]
1The firm may allocate the responsibility for its insurance mediation activity or MCD credit intermediation activity54 to an approved person (or persons) who is:5
- (1)
(if the firm is not a relevant authorised person): 5
- (a)
performing:5
- (i)
an FCA governing function; or5
- (ii)
(other than a person who is a5 non-executive director of the firm5); or
- (i)
- (b)
performing5 the apportionment and oversight function; or
- (c)
performing5 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;
- (a)
- (2)
(if a firm is a relevant authorised person) a director of the firm who:5
- (a)
is not a non-executive director; and5
- (b)
is an approved person of that firm.5
- (a)
- (1)
Typically a firm will appoint a director who is an approved person of that firm5 to direct its insurance mediation activity or MCD credit intermediation activity45. A firm that is not a relevant authorised person may also appoint a person performing another FCA governing function or PRA governing function.5
- (1A)
A firm should not appoint someone performing one of the FCA’s or PRA’s non-executive director controlled functions or any other non-executive director.5
- (1B)
Where5 responsibility for a firm’s insurance mediation activity5 or MCD credit intermediation activity5 is allocated to a person performing a controlled function that is not in paragraph (1)5, the firm5 must ensure that the firm's insurance mediation activity or MCD credit intermediation activity5 is appropriately allocated. If the apportionment and oversight function applies to the firm, the person performing the apportionment and oversight function with responsibility for the apportionment of responsibilities should carry out the allocation.5
- (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 10A.1.18 R9). 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.
9 - (2A)
Paragraph (2) does not apply to a relevant authorised person.5
- (3)
In the case of a sole trader, the sole trader will be responsible for the firm's insurance mediation activity or MCD credit intermediation activity, as applicable.4
2
Where a firm has appointed an appointed representative to carry on insurance mediation activity or MCD credit intermediation activity4 on its behalf, the person responsible for the firm's insurance mediation activity or MCD credit intermediation activity4 will also be responsible for the insurance mediation activity or MCD credit intermediation activity4 carried on by an appointed representative.
The FCA will specify in the Financial Services Register the name of the persons to whom the responsibility for the firm's insurance mediation activity or MCD credit intermediation activity4 has been allocated. by inserting after the relevant controlled function the words "(insurance mediation)" or “(MCD intermediation)”.4 In the case of a sole trader, the FCA will specify in the Financial Services Register the name of the sole trader as the 'contact person' in the firm.