(1) An undertaking shall not appoint a person as an insurance intermediary unless, to the best of the undertaking's knowledge and belief, having caused reasonable enquiry to be made he is either -
(a) a member of a representative body of insurance brokers recognised by the Minister for the purposes of section 44(1)(a), or
(b) a person who complies with the requirements of this Act but is not a member of a recognised representative body,
and the person is in compliance with the Investor Compensation Act, 1998.
(2) An undertaking shall not pay any commission payment other than to an insurance intermediary who, to the best of the undertaking's knowledge and belief, having caused reasonable enquiry to be made, is either -
(a) a member of a representative body of insurance brokers recognised by the Minister for the purposes of section 44(1)(a), or
(b) a person who complies with the provisions of this Act but is not a member of a recognised representative body.