EMPS 1.2 Parts of the Handbook applicable to energy market participants

High Level Standards

Principles for Businesses (PRIN)

This applies.

Senior management arrangements, Systems and Controls (SYSC)

This applies.

Threshold Conditions (COND)

This applies.

Statements of Principle and Code of Practice for Approved Persons (APER)

This applies to an approved person who performs a controlled function for an energy market participant.

The Fit and Proper test for Approved Persons (FIT)

This applies.

General provisions (GEN)

This applies.

Business standards

Interim Prudential sourcebooks (IPRU)

Chapter 1 (Application and General) of (Interim Prudential sourcebook: Investment Businesses) applies.

Chapter 3 (Financial resources for Securities and Futures Firms which are not Investment Firms) of IPRU(INV) applies, but energy market participants whose main business consists of the generation, production, storage, distribution and/or transmission of energy may be granted a waiver of Chapter 3 in the FSA's discretion: see EMPS 2.

The other parts ofIPRU(INV) do not apply.

The other IPRU sourcebooks do not apply.

Conduct of Business sourcebook (COB)

Only some parts of COB apply to energy market activity: see COB 1.6.6 R - COB 1.6.12 R.

Mortgages: Conduct of Business sourcebook (MCOB)1

Client assets sourcebook (CASS)

This applies.

Market Conduct sourcebook (MAR)

This applies. However MAR 2 (Price stabilising rules) is likely to be of only marginal relevance to the business of an energy market participant. MAR 5 (Multilateral Trading Facilities) applies to an energy market participant that operates an ATS.

Training and Competence sourcebook (TC)

TC 1 (Commitments) applies.

TC 2 (Rules and guidance) is likely to apply where an energy market participant conducts activities set out in TC 2.1.4 R. However, energy market participants may be granted a waiver of TC 2.4.5 R (2) in the FSA's discretion: see EMPS 2. Where such a waiver is granted the energy market participant will be entitled to assess an employee as competent to engage in or oversee an activity even though the employee has not passed each module of the appropriate approved examination.

Regulatory processes

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Supervision manual (SUP)

This applies, with the following qualifications:

(a) in SUP 3 (Auditors), only some provisions apply if IPRU(INV) 3 (Financial Resources for Securities and Futures Firmswhich are not investment firms) does not apply to an energy market participant (because it has been granted a waiver of that chapter as described in EMPS 2): see SUP 3.1.2 R and SUP 3.2.4 G;

(b) in SUP 10 (Approved persons), if an energy market participant's principal purpose is to carry on activities other than regulated activities, then the scope of the significant influence functions is restricted to the required functions: see SUP 10.1.21R - SUP 10.1.22G- ;

(c) SUP 16.7 (Financial reports): energy market participants whose main business consists of the generation, production, storage, distribution and/or transmission of energy may be granted a waiver of this section in the FSA's discretion: see EMPS 2;

(d) SUP 17

(Transaction reporting): energy market participants may be granted a waiver of this section in the FSA's discretion: see EMPS 2; and

(e) SUP App 2 (Insurers: Scheme of operations) does not apply.

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Decision Procedures and Penalties Manual (DEPP)

This applies.

Redress

Dispute resolution: Complaints sourcebook (DISP)

Energy market participants are subject to the compulsory jurisdiction of the Financial Ombudsman Service.

However, a firm which does not, and notifies the FSA under DISP 1.1.7 R that it does not, conduct business with eligible complainants (persons eligible to have a complaint considered under the Financial Ombudsman Service, as defined in DISP 2.4) will be exempt from the rules on complaint handling procedures for firms (DISP 1.2 to DISP 1.7) and from the Financial Ombudsman Funding rules (FEES 5.1 to FEES 5.7).

Compensation sourcebook (COMP)

COMP applies to all firms. However, energy market participants that do not conduct business that could give rise to a protected claim by an eligible claimant as defined and have no reasonable likelihood of doing so can gain exemption under FEES 6.2 from some compensation scheme levies.

Complaints against the FSA (COAF)

This applies.

Specialist sourcebooks

Collective Investment Schemes sourcebook (CIS)

CIS will ordinarily apply to an energy market participant that carries on regulated activities in relation to an energy collective investment scheme.

E-Commerce Directive sourcebook (ECO)

This applies to an energy market participant which is an electronic commerce activity provider.

Professional firms sourcebook (PROF)

None of the other specialist sourcebooks applies.

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Recognised Investment Exchange and Recognised Clearing House sourcebook (REC)

Special guides

Special guide for service companies (SERV)

This does not apply because an energy market participant is defined to exclude a service company.

Special guide for energy market participants (EMPS)

This applies.

Special guide for oil market participants (OMPS)

This does not apply because an energy market participant is defined to exclude an oil market participant.

Schedules

Summary schedules

1. Record keeping requirements

2. Notification requirements

3. Fees and other required payments

4. Powers exercised in making the Handbook

5. Rights of action for damages

6. Rules that can be waived

7. Releases

These apply, but only to the extent that the sourcebook or manual to which they relate applies.

Glossary of definitions

This applies.

Index

This applies.