Emma RadmoreFCA’s latest quarterly consultation paper includes a proposal to clarify a potential conflict between the requirements in MIPRU 3.2.1R that require a firm to take out and maintain continuous PII what must include cover for a firm’s liabilities as a result of the conduct of the firm, its employees and its appointed reps when acting within the scope of their appointment, and those in SUP 12.4.10AR which require firms appointing an AR for MCD credit intermediation activity to ensure before appointment that the person has and will maintain appropriate PII cover. FCA says the SUP provision could be interpreted as meaning there is an option for the AR to provide its own PII cover. FCA says that while there is nothing to stop an AR doing this, the principal firm will not meet its obligations if its policy does not cover the AR. FCA proposes to amend the SUP provision to clarify this.
FCA asks for comment by 9 October.