The purpose of PRU 9.4 is to implement article 3.6 of the Insurance Mediation Directive in relation to insurance undertakings. The provisions of this section have been extended to mortgage lenders in relation to insurance mediation activity, and to insurance undertakings and mortgage lenders in relation to mortgage mediation activity, to ensure that firms using these services are treated in the same way and to ensure that clients have the same protection. To avoid the loss of protection where an intermediary itself uses the services of an unauthorised person, PRU 9.4.4 R has the effect of ensuring that each person in the chain of those providing services is authorised.
The first condition in PRU 9.4.4 R is that the person, in relation to the activity:
has permission; or
is an exempt person; or
is an exempt professional firm; or
A firm should:
before using the services of the intermediary, check:
the FSA Register; or
for the status of the person; and
use the services of that person only if the relevant register indicates that the person is registered for that purpose.
Compliance with (1)(a)(i) and (b) may be relied on as tending to establish compliance with:
Compliance with (1)(a)(ii) and (b) may be relied on as tending to establish compliance with PRU 9.4.5 R (4).
The second condition in PRU 9.4.4 R is that the firm takes all reasonable steps to ensure that the person in PRU 9.4.5 R in relation to the activity, is not, directly or indirectly, carrying out the activity as a consequence of the activities of another person which:11