After section 63D of FSMA 2000 insert -

"Certification of employees

63E Certification of employees by relevant authorised persons

(1) A relevant authorised person ("A") must take reasonable care to ensure that no employee of A performs a specified function under an arrangement entered into by A in relation to the carrying on by A of a regulated activity, unless the employee has a valid certificate issued by A under section 63F.

(2) "Specified function" -

(a) in relation to the carrying on of a regulated activity by a PRA-authorised person, means a function of a description specified in rules made by the FCA or the PRA, and

(b) in relation to the carrying on of a regulated activity by any other authorised person, means a function of a description specified in rules made by the FCA.

(3) The FCA may specify a description of function under subsection (2)(a) or (b) only if, in relation to the carrying on of a regulated activity by a relevant authorised person of a particular description -

(a) the function is not a controlled function in relation to the carrying on of that activity by a relevant authorised person of that description, but

(b) the FCA is satisfied that the function is nevertheless a significant-harm function.