CAPI 4.1.2 Outsourcing of firm's management

(1) A firm may outsource its managerial functions to a captive insurance manager.
(2) A firm that outsources its managerial functions to a captive insurance manager may apply to the Regulatory Authority for approval of an employee or employees of the captive insurance manager to exercise 1 or more of the following controlled functions:—
(a) senior executive function;
(b) MLRO function;
(c) compliance oversight function;
(d) finance function.

Note Senior executive function, MLRO function, compliance oversight function and finance function are defined in the glossary.
Note 1 A firm that outsources its managerial functions to a captive insurance manager may choose to use—
(a) its own employees to exercise controlled functions for the firm; or
(b) the employees of the captive insurance manager to whom the firm has outsourced its managerial functions.
Note 2 For the rules on the assessment of individuals to exercise controlled functions and related matters, see INDI, Chapter 3 (Controlled functions), and Chapter 5 (Training and competency). Certain personnel-related decisions about individuals appointed or to be appointed to certain controlled functions must be made by or after consultation with an authorised firm's governing body — see INDI, rule 3.1.2, and CTRL, rule 3.1.15.
Amended by QFCRA RM/2014-6 (as from 1st January 2015)
Amended by QFCRA RM/2021-1 (as from 1st July 2021)