MIPRU 2
Insurance mediation activity: responsibility, knowledge, ability and good repute
MIPRU 2.1
Application and purpose
- 01/01/2007
Application
MIPRU 2.1.1
See Notes
- 01/01/2007
Purpose
MIPRU 2.1.2
See Notes
- 01/01/2007
MIPRU 2.2
Allocation of the responsibility for insurance mediation activity
- 01/01/2007
Responsibility for insurance mediation activity
MIPRU 2.2.1
See Notes
An insurance intermediary, other than a sole trader, must allocate the responsibility for the firm's insurance mediation activity to a director or senior manager.
[Note: Article 3(1), fourth paragraph, of the IMD]
- 01/01/2007
MIPRU 2.2.2
See Notes
The firm may allocate the responsibility for its insurance mediation activity to an approved person (or persons) performing:
- (1) a governing function (other than the non-executive director function); or
- (2) the apportionment and oversight function; or
- (3) the significant management (other business operations) function.
- 01/01/2007
MIPRU 2.2.3
See Notes
- (1) Typically an insurance intermediary will appoint a person performing a governing function (other than the non-executive director function) to direct its insurance mediation activity. Where this responsibility is allocated to a person performing another function, the person performing the apportionment and oversight function with responsibility for the apportionment of responsibilities must ensure that the firm's insurance mediation activity is appropriately allocated.
- (2) 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 10.1.21 R ). In this case, the firm may allocate the responsibility for the firm's insurance mediation activity to one or more of the persons performing the apportionment and oversight function who will be required to be an approved person.
- (3) In the case of a sole trader, the sole trader will be responsible for the firm's insurance mediation activity.
- 01/02/2007
MIPRU 2.2.4
See Notes
- 01/01/2007
MIPRU 2.2.5
See Notes
- 01/01/2007
MIPRU 2.3
Knowledge, ability and good repute
- 01/01/2007
MIPRU 2.3.1
See Notes
An insurance intermediary must establish on reasonable grounds that:
- (1) a reasonable proportion of the persons within its management structure who are responsible for insurance mediation activity; and
- (2) all other persons directly involved in its insurance mediation activity;
- demonstrate the knowledge and ability necessary for the performance of their duties; and
- (3) all the persons in its management structure and any staff directly involved in insurance mediation activity are of good repute.
[Note: Article 4(1) and (2) of the IMD]
- 01/01/2007
MIPRU 2.3.2
See Notes
In determining a person's knowledge and ability, the firm should have regard to matters including, but not limited to, whether the person:
- (1) has demonstrated by experience and training to be able, or that he will be able to perform his duties related to the firm's insurance mediation activity; and
- (2) satisfies the relevant requirements of the FSA's Training and Competence sourcebook.
- 01/01/2007
MIPRU 2.3.3
See Notes
In considering a person's repute the firm must ensure that the person:
- (1) 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
- (2) has not been adjudged bankrupt (unless the bankruptcy has been discharged);
under the law of any part of the United Kingdom or under the law of a country or territory outside the United Kingdom.
[Note: Article 4(2) of the IMD]
- 01/01/2007
MIPRU 2.3.4
See Notes
- 01/01/2007
MIPRU 2.3.5
See Notes
- 01/01/2007