Insurance Distribution Directive (9) – Staff Good Repute annual declaration.
- By MICHAEL HANSON
- •
- 10 Feb, 2020
YOUR COMPLIANCE MATTERS: Insurance Distribution Directive (9) – Staff Good Repute annual declaration.
Relevance: All firms.
Action required: Obtain
updated staff declarations
The
Insurance Distribution Directive (IDD), which has been effective since 01 October
2018, introduced a requirement that “A firm must ensure that all the persons in its management structure
and any staff directly involved in insurance distribution activities are of
good repute.”
FCA Guidance
suggests that this includes but is not limited to those who are:
·
directly involved in insurance
distribution activities; or
· within the management structure responsible for insurance distribution activities; or
· within the management structure responsible for any staff directly involved in insurance distribution activities.
The
next relevant rule states:
“In considering a person’s repute the firm
must at a minimum ensure that the person:
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) has not previously been declared bankrupt, unless they have been rehabilitated in accordance with national law.”
We
complete an annual Fitness and Propriety process for all ‘Approved’ Directors
and Partners, so you do not need to take any action in relation to these
personnel.
However,
for all other relevant staff, you should have obtained a declaration at the end
of 2018, or start of 2019, based on our guidance at the time. You will now need
to ask relevant staff to complete an updated declaration, unless you have done
so recently.
A
further copy of the “Declaration of Good Repute” is attached.
If
you need to discuss any aspect of this newsletter, please contact us.
Annual Declaration
of Good Repute
As a firm authorised and regulated by the
Financial Conduct Authority (FCA), we are obliged to follow rules from the
FCA’s Handbook, one of which states:
· “A firm must ensure that all the persons in its management structure and any staff directly involved in insurance distribution activities are of good repute.”
All employees are required
to notify us of any relevant incidents or events, on an ongoing basis. However, on an annual basis, we will require
all management and staff to complete this Declaration and return it within 7
days of issue to the person responsible for the firm’s Compliance. The
completed form will be placed on your personnel file and will remain
confidential.
The firm has an obligation to inform the
FCA of any matter that will impact on your ability to continue to be involved in
insurance distribution activities. If you answer ‘Yes’ to any of the
following questions, you must make immediate contact with the person
responsible for the firm’s Compliance for further guidance
| Item |
Yes (ü) |
No (ü) |
| Do you have a 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? (You can answer ‘No’ where the conviction is considered ‘spent’ under the Rehabilitation of Offenders Act 1974) |
|
|
| Are you currently the subject of any such criminal proceedings? |
|
|
| Do you have any unsatisfied County Court judgments against you? |
|
|
| Are you the subject of any civil proceedings, arbitration or litigation that may lead to a County Court Judgement or other judgement against you– in the UK or elsewhere? |
|
|
| Are you aware of any intention to begin such proceedings against you? |
|
|
| Have you previously been declared bankrupt? (You can answer ‘No’ if the bankruptcy has been discharged). |
|
|
| Are you the subject of a current deed of arrangement or an individual voluntary arrangement? |
|
|
| Have you ever been the subject of any investigation into allegations of misconduct or malpractice in connection with any business activity? |
|
|
| Have you ever been refused entry or been dismissed or been required to resign from any professional, vocational office or employment, or from any fiduciary office or position of trust? |
|
|
| Have you ever been refused, had revoked, restricted or terminated; any activity regulated by the FCA? |
|
|
| Have you ever been disqualified from acting as a Director of a company or from acting in a management capacity? |
|
|
| Has any company, Partnership or unincorporated association of which you have been a controller, Director, senior manager, Partner or company secretary been: · put into liquidation, wound up, ceased trading or had a receiver appointed? · adjudged by a court to be liable for any fraud, misfeasance, wrongful trading or other misconduct? · investigated or been investigated by an inspector appointed under companies or other legislation? |
|
|
| Are you aware of any business interest or employment obligations that may conflict with the current performance of a controlled function with the firm? |
|
|
| Have you withheld any material information from this firm? |
|
|
Declaration
· I confirm that my answers to the above questions are true to the best of my knowledge and belief.
· I confirm that I will advise the firm of any changes to the above answers as any issues arise.
Name
Signature Date
Please note: Personal information provided in this form will only be used to discharge this firm’s statutory functions under the Financial Services and Markets Act 2000 and other relevant legislation and will not be disclosed for any other purpose without your permission.
