INDI 4.2.2 Firms to notify Regulatory Authority of certain matters

(1) If an authorised firm considers that an individual who performs, or has performed, the customer-facing function for the firm:
(a) is not, or is no longer, a fit and proper person in relation to the function;
(b) is performing, or performed, the function at below the standard reasonably expected of a person with the necessary skills, knowledge and experience; or
(c) has contravened a relevant requirement (within the meaning given by FSR, article 84 or 85);
the firm must notify the Regulatory Authority.
(2) The notification must be given within a reasonable period after the firm becomes aware of the relevant facts. It must be given even if the individual no longer performs the function for the firm.
(3) The notification must include a statement of the relevant facts and of any action that the firm has taken or proposes to take.

Note An individual designated under rule 4.1.6 to perform only non-discretionary customer-facing activities is performing the customer-facing function — see rule 4.1.6 (5). Therefore, the obligation under this rule applies in relation to such an individual.
(4) If this rule requires the firm to notify the Regulatory Authority of a matter, and a provision of GENE, Chapter 4, requires the firm to give the authority notice of, or tell the authority about, the matter, the firm satisfies the requirements of this rule if it complies with the provision of GENE.

Note This rule requires an authorised firm to notify the authority about certain matters that are not covered by GENE, chapter 4 — see GENE, rule 4.1.3 to rule 4.1.7.
Derived from QFCRA RM/2014-5 (as from 1st January 2015)