employee

means an individual who is:

1. engaged under a contract of service by a person, firm or organisation or its wholly owned service company;
2. engaged under a contract for services, made between a firm or organisation and:
   1. that individual;
   2. an employment agency; or
   3. a company which is not held out to the public as providing legal services and is wholly owned and directed by that individual, or

under which the person, firm or organisation has exclusive control over the individual's time for all or part of the individual's working week, save that:

1. for the purposes of the SRA Financial Services (Scope) Rules, means an individual who is employed in connection with the firm's regulated financial services activities under a contract of service or under a contract for services such that he or she is held out as an employee or consultant of the firm
2. for the purposes of the SRA Indemnity Insurance Rules and the MTC, means any person other than a principal:
   1. employed or otherwise engaged in the insured firm's practice (including under a contract for services) including, without limitation, as a solicitor, lawyer, trainee solicitor or trainee lawyer, consultant, associate, locum tenens, agent, appointed person, office or clerical staff member or otherwise;
   2. seconded to work in the insured firm's practice; or
   3. seconded by the insured firm to work elsewhere,

   but does not include any person who is engaged by the insured firm under a contract for services in respect of any work where that person is required, whether under the SRA Indemnity Insurance Rules or under the rules of any other professional body, to take out or to be insured under separate professional indemnity insurance in respect of that work

and the term "employer" is to be construed accordingly

insurance distribution activity

means any of the following regulated activities as specified in the Regulated Activities Order which are carried on in relation to a contract of insurance or rights to or interests in a life policy:

1. dealing in investments as agent (article 21) 
2. arranging (bringing about) deals in investments (article 25(1))
3. making arrangements with a view to transactions in investments (article 25(2))
4. assisting in the administration and performance of a contract of insurance (article 39A)
5. advising on investments (except peer to peer agreements) (article 53(1))
6. agreeing to carry on a regulated activity in (a) to (e) above (article 64).