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Status: You are viewing the version of the handbook as on 2019-09-14.

TC 4.2 Specified requirements for firms carrying on insurance distribution activities

TC 4.2.1R

1For a firm which carries on insurance distribution activities the rules and guidance set out in column 1 of the table in TC 4.2.5R below are amended as set out in column 2.

TC 4.2.2R

1TC 4.2.1R is limited as set out in TC App 2 and TC App 3.

TC 4.2.3R

1In this section, and the provisions in column 1 of TC 4.2.5R, relevant employees are employees and other persons:

  1. (1)

    directly involved in the carrying on of the firm’s insurance distribution activities; or

  2. (2)

    within the management structure responsible for the firm’s insurance distribution activities; or

  3. (3)

    responsible for the supervision of a relevant employee acting in the capacity as set out in (1).

TC 4.2.4R

1In TC 4.2 ‘employee’:

  1. (1)

    is not restricted to an individual working under a contract of employment; and

  2. (2)

    includes (without limitation) any natural or legal person whose services are placed at the disposal of the firm, under an arrangement between the firm and a third party; and

  3. (3)

    also includes appointed representatives and their employees.

TC 4.2.5R

Column 1

Column 2

Relevant rules or guidance

Amendments either extending the scope, or adding and/or replacing rules and guidance in Column 1

TC 2.1.1R(1)

The provision is amended by adding after TC 2.1.1R(1):

‘A firm must ensure that a relevant employee’s appropriate knowledge and ability includes the requirements set out in SYSC 28.2.3R and is appropriate to the:

(a) role and activity carried out by the relevant employee within the firm; and

(b) type of distribution and the nature of the products sold.’

TC 2.1.15R; TC 2.1.17R; TC 2.1.24R and TC 2.1.25R

The rules apply as if references to retail investment advisers included ‘relevant employees’.

TC 2.1.15R

(1)

For firms whose relevant employees are not also retail investment advisers, the rule applies as if ‘35 hours’ was a reference to ‘15 hours’.

(2)

The rule is amended by adding at the end:

‘Where the relevant employee is also a retail investment adviser, the minimum 35 hours appropriate continued professional development requirement in TC 2.1.15R must include a minimum 15 hours covering the requirements in SYSC 28.2.3R.’

TC 2.1.16G

For relevant employees acting in that capacity, the guidance is replaced by the following:

‘To meet the requirements in TC 2.1.15R (as modified by TC 4.2.5R) a relevant employee’s continued training and development can encompass various types of facilitated learning opportunities including courses, e-learning and mentoring.’

TC 2.1.18G, TC 2.1.19G, and TC 2.1.23G

The guidance applies as if references to retail investment advisers included ‘relevant employees’.

TC 2.1.24R

The rule is amended by adding after TC 2.1.24R(2):

‘the firm must be in a position to make available to the FCA, on request, the name of the person responsible for this record keeping requirement.’

TC 3.1.1R

The provision is amended by adding after TC 3.1.1R(3):

‘a firm must keep an up-to-date record of the continued professional training or development completed by each relevant employee in each 12 month period,

(a)

for not less than 3 years after the relevant employee stops carrying out the activity; and

(b)

the firm must be in a position to provide any version of the record to the FCA on request.’

TC 4.2.6R

1Where the relevant employee is also a retail investment adviser the rules and guidance in TC 4.2.5R apply as follows (unless otherwise stated in TC 4.2.5R):

  1. (1)

    the unamended TC rules and guidance in column 1 of TC 4.2.5R apply in relation to the person when acting in the capacity of a retail investment adviser; and

  2. (2)

    the amended TC rules and guidance in column 2 apply in relation to the person when acting in the capacity of a relevant employee.

TC 4.2.7G

1Rules and guidance in this section relate to the requirements in SYSC 28 (Minimum knowledge and competence requirements for carrying out insurance distribution activities).