Background

The rules and guidance in this sourcebook apply to “relevant employees” as defined in the IDD meaning staff:

1. directly involved in the carrying on of the firm’s insurance distribution activities; or
2. within the management structure responsible for the firm’s insurance distribution activities; or
3. responsible for the supervision of a relevant employee acting in the capacity as set out in 1.

The Knowledge and Ability rules which apply to relevant employees are covered fully in the SYSC section (SYSC 28) of this manual but in summary
require:

1. All relevant staff involved in Insurance Distribution activity (not just staff advising consumers) to comply with new training and development requirements including completing a minimum of 15 hours formal CPD per annum covering prescribed areas of professional knowledge and competence.
2. Firms to maintain appropriate records to demonstrate compliance with these new requirements.

In addition, all firms have an obligation under SYSC 5.1.1R (Competent Employees Rule) to ensure that they employ staff with the necessary skills, knowledge and expertise to undertake the role allocated to them. They also need to ensure that the staff involved remain competent to undertake that role.

Effectively therefore the TC Rules/Guidance and the guidance provided by this section of the manual are applicable for most employees of Insurance Intermediaries.