MIGI 6.3 Approved persons requirements for appointed representatives
Appointed representatives (ARs) are also required to have approved persons, though the requirements are different for appointed representatives than for authorised firms and are explained below. Part I, Chapter 9 covers the general requirements for mortgage and insurance intermediaries with ARs.
The approved persons requirements are different for different types of ARs.
- (1)
All individuals that perform the governing functions within:
- ARs carrying on mortgage mediation activities; and
- ARs carrying on insurance mediation activities as their main business;
All individuals that perform the governing functions within:
will need to be approved persons.
- (2)
Like secondary insurance intermediaries, 'secondary insurance mediation ARs' require only one approved persons, who will need to apply for and obtain approval to perform the governing functions. A 'secondary insurance mediation AR' is one whose main business is not insurance mediation and who is limited by its principal to carrying on only insurance mediation activities and no other regulated activities.
- (3)
Introducer ARs are not required to have any approved persons (see Part I, paragraph 9.2.2 for an explanation of introducer ARs).
Examples to help you identify which controlled functions are likely to apply to your firm's ARs:
Type of AR |
Potentially Relevant Controlled Functions |
A small partnership that is a mortgage mediation AR, a primary insurance mediation AR, or both |
•CF4 Partner Function (SUP 10.6.17 R) |
A small company that is a mortgage mediation AR, a primary insurance mediation AR, or both |
•CF1 Director Function (SUP 10.6.4 R) •CF2 Non Exec Director Function (SUP 10.6.8 R) •CF3 Chief Exec Function (SUP 10.6.11 R) |
A sole trader that is a mortgage mediation AR, a primary insurance mediation AR, or both |
• Unlikely to require any approved persons (but see SUP 10.6.2 R and SUP 10.6.3 G) |
A sole trader that is a secondary insurance mediation AR only |
• Unlikely to require any approved persons (but see SUP 10.6.2 R and SUP 10.6.3 G) |
A small partnership that is a secondary insurance mediation AR only |
•CF4 Partner Function (SUP 10.6.17 R) •Only one approved person required |
A small company that is a secondary insurance mediation AR only |
•CF1 Director Function (SUP 10.6.4 R) •CF2 Non Exec Director Function (SUP 10.6.8 R), •CF3 Chief Exec Function (SUP 10.6.11 R) •Only one approved person required |
An introducer AR introducing mortgage business, insurance business, or both |
•Not required to have any approved persons |
Where an AR is undertaking insurance mediation activities (including 'introducing') the Principal is required to notify us of a contact name for the AR, which will then be shown on the FSA Register. The Principal designates a person 'Responsible for its Insurance Mediation business' (RIM) under PRU 9.1 who will also be responsible for the insurance mediation activities of the AR (PRU 9.1.6 G). The AR's contact person will be able to direct a customer to the RIM, if necessary. This is explained in Part I, Chapter 9, paragraph 9.2.18.