APER 1.2 Purpose

3The Statements of Principle contained in APER 2 are rules made 2under section 64A(1)(a) 2of the Act (Rules of conduct). 2

2The guidance in APER 3 and APER 4 is guidance on the Statements of Principle and is called the2 Code of Practice for Approved Persons2.

The Code of Practice for Approved Persons sets out descriptions of conduct which, in the opinion of the FCA3, do or2 do not comply with a Statement of Principle2. The Code of Practice for Approved Persons also sets out, in certain cases, factors which, in the opinion of the FCA3, are to be taken into account in determining whether or not an approved person's conduct complies with a Statement of Principle.2

As set out in SUP 10A.3.1 R (Provisions related to the Act)3, a function is a controlled function only to the extent that it is performed under an arrangement entered into by:

1. (1)

   a firm; or

2. (2)

   a contractor of the firm;

in relation to the carrying on by the firm of a regulated activity.