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  3. Point in time
    2019-01-03

APER 1.1A 7Application

Who?

APER 1.1A.1RRP

1APER applies to FCA-approved persons who are either3:

  1. (1)

    approved persons of firms that are not SMCR firms; or3

  2. (2)

    approved persons approved to perform a controlled function in SUP 10A.1.15R to SUP 10A.1.16BR (appointed representatives3).

APER 1.1A.1AGRP
  1. (1)

    1APER does not apply to FCA-approved persons of SMCR firms3. COCON applies instead. 3

    222
  2. (2)

    However, APER applies to approved persons approved to perform a controlled function under SUP 10A.1.15R to SUP 10A.1.16BR (appointed representatives3) even if the appointed representative's principal is an SMCR firm3.

What?

APER 1.1A.2RRP
  1. (1)

    1APER applies to the performance by an approved person of FCA controlled functions in SUP 10A (FCA Approved Persons) (whether or not approval has been sought and granted).3

  2. (2)

    APER also applies to the performance by an approved person of any other functions in relation to the carrying on of a regulated activity by their authorised approved person employer.3

  3. (3)

    Subject to (4), APER does not apply to conduct to which COCON applies.3

  4. (4)

    APER applies to conduct to which COCON does not apply under COCON 1.1.8AR (To what conduct does it apply?).3

APER 1.1A.3GRP

The functions described in APER 1.1A.2R 1are called accountable functions.

APER 1.1A.4GRP

The relevance of MiFID to the Statements of Principle will depend on the extent to which the corresponding requirement imposed on firms under MiFID is reserved to a Home State regulator or has been disapplied under MiFID (see APER 2.1A.2R and FIT 1.2.4AG1. See also COBS 1 Annex 1, Part 2, 1.1R (EEA territorial scope rule: compatibility with European law)).

Where?

APER 1.1A.5GRP

The territorial scope of the approved persons regime and its application to incoming EEA firms is set out in SUP 10A.1 (see SUP 10A.1.11R and SUP 10A.1.13R).

Coverage of APER

APER 1.1A.6GRP

APER 1.1A.7 G gives examples of the effect of APER 1.1A.1R and APER 1.1A.2R1. The first column says whether the example involves an FCA-approved person in relation to one or two firms3. The second3 column explains what functions APER covers in the scenario set out in the first column3.

APER 1.1A.7GRP

Table: Examples of what activities APER3 covers

FCA approved

Coverage of APER3

(1) Yes, in relation to firm A

Applies to the FCA controlled function. Also applies to any other function performed for firm A in relation to the carrying on by firm A of a regulated activity even if it is not a controlled function.3

(2) Yes, in relation to firm A. No, in relation to firm B,

In relation to firm A, the answer is the same as for scenario (1). However, APER does not apply to any function that the approved person carries on in relation to firm B even if that function relates to regulated activities carried out by firm B. However, if the function that they perform3 in relation to firm B is a controlled function the approved person and firm B may be subject to legal sanctions (see SUP 10A.13.1G to SUP 10A.13.2G).3
APER 1.1A.8GRP
  1. (1)

    A person may be an approved person in relation to more than one firm. When that is the case, APER applies in relation to all those firms.1

  2. (2)

    APER does not apply if the firm is an SMCR firm3, except for approved persons of an appointed representative of an SMCR firm3.1

    2
  3. (3)

    If a person is an approved person of a firm (A) that is not an SMCR firm3and also of another firm (B) that is an SMCR firm3, the result is: 1

    22
    1. (a)

      APER applies to the approved person in relation to firm A; and1

    2. (b)

      COCON applies to the approved person in relation to firm B.1

APER 1.1A.9GRP
  1. (1)

    APER 1.1A1 refers to 3an approved person’s firm. This means their authorised approved person employer3.

    1
  2. (2)

    Under section 59 of the Act (Approval for particular arrangements) there are two kinds of approved person.

  3. (3)

    Section 59(1) of the Act describes the first. It covers a person who performs a controlled function under an arrangement entered into by an authorised person ("A"). In this case, the authorised approved person employer is3 A.

    1
  4. (4)

    Section 59(2) of the Act describes the second. It covers a person who performs a controlled function under an arrangement entered into by a contractor ("B") of an authorised person ("A"). In this case, the authorised approved person employer is3 A (and not B).

    1
APER 1.1A.10E

1[deleted]

APER 1.1A.11G

1[deleted]