The European Communities (Insurance Mediation) Regulations 2005 came into operation on 14 January 2005, and give effect to Directive 2002/92/EC of the European Parliament and of the Council on insurance mediation (IMD).
The IMD requires that :
“insurance and reinsurance intermediaries shall possess appropriate knowledge and ability, as determined by the home Member State of the intermediary”.
The Financial Regulator decided to expand the application of the Requirements to the main sectors of the regulated financial services industry, in addition to the imposition of requirements on insurance and reinsurance intermediaries as mandated by the IMD.
The Minimum Competency Requirements (“the Requirements”) introduce a competency framework that is designed to establish minimum standards for regulated entities.
Regulated entities are required to ensure that their staff members
- who provide advice on retail financial products
- who sell retail financial products
- or who undertake certain specified activities on their behalf
acquire the competencies set out in the Requirements.
In addition, those persons will be required to undertake a programme of continuing professional development (CPD) on an ongoing basis.