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Status: You are viewing the version of the handbook as on 2019-01-03.

SYSC 28.3 Good repute

Good repute requirements

SYSC 28.3.-1R

2This section does not apply to a connected travel insurance intermediary.

SYSC 28.3.1R

1A firm 2 must ensure that all the persons in its management structure and any staff directly involved in insurance distribution activities are of good repute.[Note: article 10(3) paragraphs 1 to 3 of the IDD]

SYSC 28.3.2G

1This includes but is not limited to those natural persons:

  1. (1)

    that are directly involved in insurance distribution activities; or

  2. (2)

    within the management structure responsible for insurance distribution activities; or

  3. (3)

    within the management structure responsible for any staff directly involved in insurance distribution activities.

[Note: article 10(3) paragraphs 1 and 3 of the IDD]

SYSC 28.3.3R

1An IDD ancillary insurance intermediary must ensure that natural persons working in the firm, responsible for ancillary insurance distribution activities, are of good repute.

[Note: article 10(3) paragraph 4 of the IDD]

SYSC 28.3.4R

1In considering a person’s repute the firm must at a minimum ensure that the person:

  1. (1)

    has a clean criminal record or any other national equivalent in relation to serious criminal offences linked to crimes against property or other crimes related to financial activities; and

  2. (2)

    has not previously been declared bankrupt,

unless they have been rehabilitated in accordance with national law.

[Note: article 10(3) paragraph 1 of the IDD]

SYSC 28.3.5G
  1. (1)

    1In the United Kingdom the following persons will be considered to have been rehabilitated:

    1. (a)

      in relation to a serious criminal offence, where the conviction is considered ‘spent’ under the Rehabilitation of Offenders Act 1974;

    2. (b)

      in relation to bankruptcy, where the bankruptcy has been discharged.

  2. (2)

    References to “serious criminal offences” are not restricted to offences considered to have been committed in or under the law of the United Kingdom.

  3. (3)

    A firm should give particular consideration to offences of dishonesty, fraud, financial crime or other offences under legislation relating to banking and financial services, companies, insurance and consumer protection.

SYSC 28.3.6G

1A firm’s systems and controls should enable it to satisfy itself of the suitability of anyone who acts for it (see SYSC 3.2.13G and SYSC 5.1.2G). This includes, among other things, the assessment of an individual’s honesty.