Gibraltar FSC Clarifies Rules Surrounding Appointed Representatives

by Robert Lee, Tax-News.com, London

24 February 2010

The Gibraltar Financial Services Commission (FSC) has responded to insurance intermediaries' request for clarification regarding requirements in relation to the appointment, by them, of Appointed Representatives.

In its response the FSC has clarified that there is no legal or regulatory requirement for the FSC to approve or not object to the appointment of an Appointed Representative of an insurance intermediary. Therefore, licensees need not submit applications.

However, the FSC has urged that it is the responsibility of the management of insurance intermediaries to comply with Regulation 47 of the Financial Services (Conduct of Business: Investment Firms & Insurance Intermediaries) Regulations 2006. Article 47 of the regulation reads, under the heading advisory staff:

“A firm shall not appoint an individual as, or permit an individual to continue to work as an adviser, unless the firm is satisfied, on reasonable grounds, that he is of good character and of the requisite aptitude and otherwise suitable, including with regard to his financial position, to provide advice on the services or investments or other products on which he is to advise, and that he complies with any requirements set by the Authority with regard to training and qualifications.”

Management will need to make sure Appointed Representatives have suitable and up to date qualifications, and/or they provide enhanced supervision.

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