NEDs - membership of NEDS IM & the regulatory position
In order to clarify the position regarding when a NED needs to become licensed, NEDS IM has met with the IOM FSC to clarify the position:
The Regulatory Position
The Regulated Activities Order 2009 and the Financial Services (Exemptions) Regulations 2009 set out the various exclusions and exemptions applicable to persons acting as a director of a company. These exclusions and exemptions are specific and must be adhered to.
Any person who expects to provide services outside of those exclusions or exemptions must apply for a licence to do so BEFORE the event. Therefore, for example, where a NED deliberately sets out to achieve a portfolio of directorships in excess of the de minimis of 10, then that person should discuss this with the FSC and pursue an application for a Financial Services Licence to undertake Class 4 regulated activity..
Where a NED sets out to attain a portfolio of directorships that are within the exemptions and exclusions, such as within the de minimis of 10, and does not go over that limit, then there is no need to pursue individual licensing.
Membership of NEDS IM and similar registers
Membership of NEDS IM or other registers (e.g. non-execs.com) does not, in itself, trigger the regulatory requirement to be licensed under the Financial Services Act 2008 as above.
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