(1) A product producer may not-

(a) appoint an investment product intermediary to act on its behalf-

(i) in receiving or transmitting orders for collective investment scheme instruments, or

(ii) in receiving or transmitting orders for company shares or bonds, that are listed on a stock exchange, or

(iii) in receiving or transmitting orders for prize bonds, or

(iv) in receiving or transmitting orders for tracker bonds, or

(v) [deleted]

(vi) in receiving or transmitting orders for personal retirement savings accounts, or

(vii) when acting as a deposit agent or as a deposit broker,

or

(b) pay commission to an investment product intermediary, or

(c) accept any orders transmitted by an investment product intermediary on behalf of a client,

unless to the best of the producer's knowledge, after having made reasonable enquiries, the investment product intermediary is appropriately qualified.

(2) An investment product intermediary is appropriately qualified for the purpose of subsection (1) only if the intermediary-