PERSONAL INVESTMENT AUTHORITY: RULE CHANGE
| Published date | 01 January 1995 |
| DOI | https://doi.org/10.1108/eb024833 |
| Date | 01 January 1995 |
| Pages | 103-106 |
| Subject Matter | Accounting & finance |
RULE UPDATE
PERSONAL INVESTMENT AUTHORITY: RULE CHANGE
On 4th
November,
1994 the PIA issued
Rule Notice 4
which,
as well
as
making
certain amendments to the PIA (Com-
mencement and Transitional Provi-
sions) Rules 1994, introduces the
following new
provisions
and
amendments
to
existing provisions.
CHAPTERS 2 (INVESTMENT
STAFF) AND 3 (APPOINTED
REPRESENTATIVE FIRMS AND
INTRODUCER FIRMS)
PIA's Fit
and
Proper Criteria
Existing provisions have been
amended and expanded to intro-
duce into the Rule Book specific
details (in the form of new Table 2
Ch. 2) of the 'prescribed information'
which must be obtained before
appointing investment staff or
appointed representatives. Examples
of such information include, in addi-
tion to the usual personal details
about past employment and qualifi-
cations, some quite exhaustive
details designed to establish 'Charac-
ter' such as the applicant's (including
associated businesses and trusts)
history
vis-à-vis
bankruptcy proceed-
ings;
the applicant's history in rela-
tion to disciplinary proceedings
under the Financial Services Act
1986 (FSA) or any formal investiga-
tion under financial services, com-
panies and insurance companies
legislation. Such 'Character' details
must be provided in relation to any
overseas provisions comparable with
those specified in Table 2 (which are
UK domestic law and regulation).
Thus the information gathering
stage of the 'Fit and Proper' test is
made global under the new rules.
The degree of specificity in Table
2 accords with the noises made by
SIB and in Government, during the
period of the PIA's formation, to the
effect that the PIA's 'Fit and Proper'
test for membership should be signi-
ficantly more rigorous and searching
than that operated by those regula-
tory bodies it replaces.
References
Rule 2.1.1(3) has been amended to
make clear that an individual may
be appointed as a financial adviser
or representative before a reference
is taken up from his last employer,
but not before receipt of a reference
from any previous employer from
whom a reference is requisite. The
PIA Board has decided that the
requirement for a member to supply
references should not be restricted
103
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