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;
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
Where5 responsibility for a firm’sinsurance 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'sinsurance 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
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 R7). In this case, the firm may allocate the responsibility for the firm'sinsurance mediation activity to one or more of the persons performing the apportionment and oversight function who will be required to be an approved person.7
- (3) 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'sinsurance 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'sinsurance 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.
demonstrate the knowledge and ability necessary for the performance of their duties; and
- (1) 1
- (2) 17
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);
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 and SYSC 4.1.1 R).5 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 and SYSC 5.1.2 G).5 This includes the assessment of an individual's honesty and competence. In addition, the competent employees rule (SYSC 3.1.6 R and SYSC 5.1.1 R)5 sets out a high-level competence requirement which every firm should follow.11