• IMEB Chapter 7 IMEB Chapter 7 Client mandates

    • IMEB 7.1.1 Application — ch 7

      (1) This chapter applies to a firm that is an insurance intermediary with—
      (a) an authorisation that permits it to conduct only insurance mediation; or
      (b) authorisations that permit it to conduct only insurance mediation and captive insurance management.
      (2) This chapter also applies to a firm that is a captive insurance manager with—
      (a) an authorisation that permits it to conduct only captive insurance management; or
      (b) authorisations that permit it to conduct only captive insurance management and insurance mediation.
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 7.1.2 Mandates — systems and controls

      (1) In this rule:

      mandate, for a firm that is an insurance intermediary or captive insurance manager, means any written authority from a client under which the firm may control assets or liabilities of the client in the course of, or in connection with, the firm's insurance mediation or captive insurance management activities, except so far as those activities relate to a reinsurance contract or reinsurance contracts.

      Examples of authority
      1 authority for direct debit of a bank account
      2 authority to charge a credit card
      Note 1 Insurance intermediary is defined in rule 1.2.1 and captive insurance manager is defined in rule 1.2.4.

      Note 2 Writing, client and reinsurance contract are defined in the glossary.

      Note 3 Insurance mediation is defined in rule 1.2.2 and captive insurance management is defined in rule 1.2.5.
      (2) If a firm holds 1 or more mandates, it must establish appropriate systems and controls in relation to its use of the mandates to prevent misuse of the authority given by the mandates.
      (3) Without limiting subrule (2), the systems and controls must include the following:
      (a) an up-to-date list of the firm's mandates and all conditions and restrictions imposed by clients on their use;
      (b) a record of all transactions entered into using a mandate and appropriate controls to ensure that each transaction is within the scope of the authority given by the relevant mandate;
      (c) details of the procedures and authorities for giving and receiving instructions under the mandates;
      (d) all reasonable steps to ensure that any employees who are, or are likely to be, required to give or receive instructions under a mandate are fully aware of its terms, including—
      (i) the procedures and authorities for giving and receiving instructions under the mandate; and
      (ii) all conditions and restrictions (if any) imposed by the client on its use.
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)