- (1) For a firm, including a TP firm, which carries on insurance distribution activities the rules and guidance set out in column 1 of the table in TC 4.2.5R below are amended as set out in column 2.
(2) The amendments in (1) do not apply in relation to the provision of targeted support services where this would constitute insurance distribution activity.
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TC 4.2 Specified requirements for firms carrying on insurance distribution activities
You are viewing TC 4.2 Specified requirements for firms carrying on insurance distribution activities as of . TC 4.2 Specified requirements for firms carrying on insurance distribution activities was last updated on 06/04/2026.
TC 4.2 Specified requirements for firms carrying on insurance distribution activities
06/04/2026R
09/12/2025G
- (1) Firms are reminded that GEN 2.2 sets out how the Handbook applies to TP firms.
- (2) TC 4.2, to the extent that it applies (see TC 4.2.2R), including any amendments made after IP completion day (including for the avoidance of doubt new rules arising out of those amendments), continues to apply to TP firms.
09/12/2025R
In this section, non-investment insurance personnel are employees and other persons:
(1)
directly involved in the carrying on of the firm’s insurance distribution activities in relation to non-investment insurance contracts; or
(2)
within the management structure responsible for the firm’s insurance distribution activities in relation to non-investment insurance contracts; or
(3)
responsible for the supervision of a non-investment insurance employee (or other person) acting in the capacity as set out in (1).
09/12/2025G
In this section, and the provisions in column 1 of TC 4.2.5R, long-term insurance personnel are employees and other persons:
- (1) directly involved in the carrying on of the firm's insurance distribution activities in relation to:
- (a) long-term insurance contracts (other than pure protection contracts);
- (b) long-term care insurance contracts; or
- (c) rights to or interests in a life policy;
- (2) within the management structure responsible for the firm's insurance distribution activities in relation to:
- (a) long-term insurance contracts (other than pure protection contracts);
- (b) long-term care insurance contracts; or
- (c) rights to or interests in a life policy; or
- (3) responsible for the supervision of a long-term insurance employee (or other person) acting in the capacity as set out in (1).
01/10/2018R
In TC 4.2 ‘employee’:
- (1)
is not restricted to an individual working under a contract of employment; and
- (2)
includes (without limitation) any natural or legal person whose services are placed at the disposal of the firm, under an arrangement between the firm and a third party; and
- (3)
also includes appointed representatives and their employees.
09/12/2025R
| Column 1 | Column 2 | ||
|---|---|---|---|
| Relevant rules or guidance | Amendments either extending the scope, or adding and/or replacing rules and guidance in Column 1 | ||
| TC 2.1.1R(1) | The provision is amended by adding after TC 2.1.1R(1): ‘A firm must ensure that a long-term insurance employee’s (or other person) appropriate knowledge and ability includes the requirements set out in SYSC 28.2.3R and is appropriate to the: (a) role and activity carried out by the long-term insurance employee (or other person) within the firm; and (b) type of distribution and the nature of the products sold.’ | ||
| TC 2.1.15R; TC 2.1.17R; TC 2.1.24R and TC 2.1.25R | The rules apply as if references to retail investment advisers included ‘long-term insurance personnel’. | ||
| TC 2.1.15R | (1) | For firms whose long-term insurance personnel are not also retail investment advisers, the rule applies as if ‘35 hours’ was a reference to ‘15 hours’. | |
| (2) | The rule is amended by adding at the end: ‘Where the long-term insurance employee (or other person) is also a retail investment adviser, the minimum 35 hours appropriate continued professional development requirement in TC 2.1.15R must include a minimum 15 hours covering the requirements in SYSC 28.2.3R.’ | ||
| TC 2.1.16G | For long-term insurance personnel acting in that capacity, the guidance is replaced by the following: ‘To meet the requirements in TC 2.1.15R (as modified by TC 4.2.5R) a long-term insurance employee’s (or other person) continued training and development can encompass various types of facilitated learning opportunities including courses, e-learning and mentoring.’ | ||
| TC 2.1.18G, TC 2.1.19G, and TC 2.1.23G | The guidance applies as if references to retail investment advisers included ‘long-term insurance personnel’. | ||
| TC 2.1.24R | The rule is amended by adding after TC 2.1.24R(2): ‘the firm must be in a position to make available to the FCA, on request, the name of the person responsible for this record keeping requirement.’ | ||
| TC 3.1.1R | The provision is amended by adding after TC 3.1.1R(3): ‘a firm must keep an up-to-date record of the continued professional training or development completed by each long-term insurance employee (or other person) in each 12 month period, | ||
| (a) | for not less than 3 years after the long-term insurance (or other person) stops carrying out the activity; and | ||
| (b) | the firm must be in a position to provide any version of the record to the FCA on request.’ | ||
09/12/2025R
Where the long-term insurance employee (or other person) is also a retail investment adviser the rules and guidance in TC 4.2.5R apply as follows (unless otherwise stated in TC 4.2.5R):
(1)
the unamended TC rules and guidance in column 1 of TC 4.2.5R apply in relation to the person when acting in the capacity of a retail investment adviser; and
(2)
the amended TC rules and guidance in column 2 apply in relation to the person when acting in the capacity of a long-term insurance employee (or other person).
09/12/2025R
Where a non-investment insurance employee (or other person) is also a retail investment adviser:
- (1) the unamended TCrules and guidance in column 1 of TC 4.2.5R apply in relation to the person when acting in the capacity of a retail investment adviser; and
- (2) the applicable rules and guidance in SYSC 28 apply in relation to the person when acting in the capacity of a non-investment insurance employee.
09/12/2025G
Where a non-investment insurance employee (or other person) is also a retail investment adviser:
- (1) the firm should take into account the elements of professional knowledge and competence listed in SYSC 28.2.2AG, in light of the role and activity carried out by the individual within the firm when determining the appropriate continued professional development required for the purposes of TC 2.1.15R; and
- (2) the guidance in TC 2.1.16G is replaced with the following guidance: ‘To meet the requirements in TC 2.1.15R, a non-investment insurance employee’s continued training and development can encompass various types of facilitated learning opportunities including courses, e-learning and mentoring.’