What is the role of an approved person in the regulatory framework?

The role of an approved person in the regulatory framework is to perform controlled functions, which are specific roles and responsibilities listed by the regulatory authority that require individuals to be approved based on their competence and integrity. The approved person is accountable for ensuring that the organization operates within the rules and regulations set by the regulatory bodies, thereby maintaining trust and ensuring protection for the consumers.

Controlled functions can include various activities like making decisions related to the conduct of business, managing clients’ assets, or holding leadership positions. This framework is designed to ensure that individuals in key positions are fit and proper to carry out their roles, thus safeguarding the interests of policyholders and promoting the soundness of the financial system.

The other choices revolve around aspects of insurance contracts and policy management, which, while important, do not specifically define the regulatory role of an approved person as outlined in the context of controlled functions.