Related provisions for BIPRU 4.3.31
1Schedule to the Recognition Requirements Regulations, paragraph 2A
(1) |
The composition of the management body of a [UK RIE] must reflect an adequately broad range of experience. |
||
(2) |
The management body must possess adequate collective knowledge, skills and experience in order to understand the [UK RIE’s] activities and main risks. |
||
(3) |
Members of the management body must - |
||
(a) |
commit sufficient time to perform their functions on the management body; |
||
(b) |
act with honesty, integrity and independence of mind; and |
||
(c) |
effectively - |
||
(i) |
assess and challenge, where necessary, the decisions of the senior management; and |
||
(ii) |
oversee and monitor decision making. |
||
(4) |
The management body must - |
||
(a) |
define and oversee the implementation of governance arrangements that ensure the effective and prudent management of the [UK RIE] in a manner which promotes the integrity of the market, which at least must include the - |
||
(i) |
the segregation of duties in the organisation; and |
||
(ii) |
the prevention of conflicts of interest; |
||
(b) |
monitor and periodically assess the effectiveness of the [UK RIE’s] governance arrangements; and |
||
(c) |
take appropriate steps to address any deficiencies found as a result of the monitoring under paragraph (b). |
||
(5) |
A [UK RIE] must - |
||
(a) |
devote adequate human and financial resources to the induction and training of members of the management body; |
||
(b) |
ensure that the management body has access to the information and documents it requires to oversee and monitor management decision-making; and |
||
(c) |
notify the FCA of the identity of all the members of its management body. |
||
(6) |
A [UK RIE] and, if it has a nomination committee, its nomination committee must engage a broad set of qualities and competences when recruiting persons to the management body, and for that purpose have a policy promoting diversity on the management body. |
||
(7) |
The number of directorships a member of the management body can hold at the same time must take into account individual circumstances and the nature, scale and complexity of the [UK RIE’s] activities. |
Multiple principal agreement
Matter |
Explanation |
|
1. |
Scope of appointment |
The scope of appointment given by each principal to the appointed representative. |
2. |
Complaints handling |
The identity of the principal which will be the point of contact for a complaint from a client (referred to as the "lead-principal" in SUP 12.4.5D G to SUP 12.4.5E G). |
An agreement that each principal will co-operate with each other principal in resolving a complaint from a client in relation to the appointed representative's conduct. |
||
The arrangements for complaints handling, including arrangements for resolving disputes between the principals in relation to their liability to a client in respect of a complaint and arrangements for dealing with referrals to the Financial Ombudsman Service. |
||
3. |
The arrangements for approving financial promotion. |
|
4. |
Control and monitoring |
The arrangements for the control and monitoring of the activities of the appointed representative (see in particular SUP 12.6.6 R (Regulated activities and investment services outside the scope of appointment) and SUP 12.6.7 G (Senior management responsibility for appointed representatives)). |
5. |
Approved person status |
The arrangements for making applications for approved person status (see SUP 10A and SUP 10C12 (Approved persons) and the corresponding PRA requirements).12 2323 |
6. |
Training and competence |
The arrangements for training and competence (see TC). |
7. |
Co-operation |
The arrangements for co-operation over any other issues which may arise from the multiple appointments, including issues which may damage the interests of clients dealing with the appointed representative and administrative issues. |
An agreement by each principal to take reasonable steps to ensure that it does not cause the appointed representative or any of its other principals to be in breach of their obligations to each other or under the regulatory system. |
||
8. |
Sharing information |
The arrangements for sharing information on matters relevant to the matters covered under the multiple principal agreement and each principal's obligations under SUP 12.6 (Continuing obligations of firms with appointed representatives) and SUP 12.6A (Assessment of compliance)21. |
An agreement that each principal will notify each other principal of any information which is materially relevant to the multiple principal agreement. |