Page 463 - IOM Law Society Rules Book

166 Financial Services Act 2008 c.8

Section 18(4) & (5) SCHEDULE 3

THE RULE BOOK

1. The Rule Book may include provision in respect of —

(a) the standard of service and practices to be adopted by licenceholders
to support fair and responsible treatment of customers;

(b) the terms of business and other contracts entered into between
licenceholders and their customers in relation to any regulated activity;
(c) the systems, procedures, record-keeping, controls and training which
must be instituted and operated by a licenceholder in the course of its
business;

(d) the retention of documents and records by licenceholders;

(e) the effecting of policies of indemnity insurance by licenceholders in
such form, indemnifying them to such sum, in such manner, in respect
of such matters, and valid for such period as may be specified in the
Rule Book;

(f) the imposition of obligations on licenceholders to ensure that officers
and employees of the licenceholder or such classes of officers and
employees as may be specified in the Rule Book are resident in the Island;

(g) the imposition of obligations on licenceholders to ensure the appropriate
level of competence and suitability in its employees, agents, persons
acting in accordance with its instructions and persons recommended
by it to undertake any function relating to any regulated activity;

(h) ensuring that the functions referred to in paragraph (g) are undertaken
by its employees with due skill and in a diligent and proper manner;

(i) the identification by a licenceholder of persons with, for or in respect
of whom the licenceholder engages in any regulated activity;

(j) the identification of the nature and purpose of any business, transaction
or arrangement undertaken by persons with, for or in respect of whom
the licenceholder engages in any regulated activity;

(k) the circumstances in which a licenceholder must refuse to engage in
any regulated activity with, for or in respect of any person;

(l) arrangements by licenceholders for the settlement of disputes;

(m) the keeping of accounts and other financial records of a licenceholder,
their form, content, inspection and audit, the description of persons to
be treated as auditor for the purposes of section 17 and the submission
of copies or extracts to the Commission at such times and on such
occasions as may be specified in the Rule Book;
(n) the disclosure of the amount or value, or of arrangements for the
payment or provision, of commissions or other inducements in
connection with any business carried on by a licenceholder and the
matters by reference to which or the manner in which their amount or
value may be determined;