When you read this part of the law, some words have special meanings. A director is someone who is currently a director or used to be one. You also need to know that effecting insurance means paying for the insurance, either directly or indirectly.

Some other words have special meanings too. An employee is someone who is currently working for a company or used to work for it. A specified person can be someone who issues financial products, offers them, holds a special licence, operates a market, or supervises something, and there are links to more information about these things, like the relevant legislation. These meanings are important to understand what the law is saying.