An insurance intermediary must establish on reasonable grounds that:
demonstrate the knowledge and ability necessary for the performance of their duties; and
[Note: Article 4(1) and (2) of the IMD]
has not been convicted of any serious criminal offences linked to crimes against property or other crimes related to financial activities (other than spent convictions under the Rehabilitation of Offenders Act 1974 or any other national equivalent); and
has not been adjudged bankrupt (unless the bankruptcy has been discharged);
[Note: Article 4(2) of the IMD]
Firms are reminded that Principle 3 requires firms to take reasonable care to organise and control their affairs responsibly and effectively. Principle 3 is amplified by the rule which requires firms to take reasonable care to establish and maintain such systems and controls as are appropriate to its business (SYSC 3.1.1 R). A firm's systems and controls should enable it to satisfy itself of the suitability of anyone who acts for it (SYSC 3.2.13 G). This includes the assessment of an individual's honesty and competence. In addition, the Training and Competence sourcebook lists some general, high level commitments to training and competence which every firm should make and fulfil.