FPCOB 17.1 Application and purpose

1The Principles for Businesses (PRIN)

The Principles for Businesses (PRIN) set out high-level requirements imposed by the FCA. They provide a general statement of regulatory requirements. The Principles apply to all firms.

Senior Management Arrangements, Systems and Controls (SYSC)

SYSC 1, SYSC 4 to SYSC 10, SYSC 18, SYSC 19F.3, SYSC 21, SYSC 22, SYSC 23, SYSC 24, SYSC 27 and SYSC 28A apply to firms carrying out regulated funeral plan activities.

Code of Conduct (COCON)

This contains rules and guidance that are directly applicable to a firm’s SMF managers, certification employees and other conduct rules staff. It also contains guidance for firms on giving their staff training about COCON and general factors to which the FCA will have regard when assessing compliance with the COCON rules.

Threshold Conditions (COND)

In order to become authorised under the Act all firms must meet the threshold conditions. The threshold conditions must be met on a continuing basis by firms. Failure to meet one of the conditions is sufficient grounds for the exercise by the FCA of its powers.

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

APER applies to FCA approved persons working within an appointed representative and so is not relevant to a firm without appointed representatives.

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

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

The Fit and Proper test for Employees and Senior Personnel (FIT)

The purpose of FIT is to set out and describe the criteria that a firm should consider when assessing the fitness and propriety of a person:

(1) in respect of whom an application is being made for approval to undertake a controlled function under the senior managers regime;

(2) who has already been approved;

(3) who is a certification employee; or

(4) whom a firm is considering appointing to be a certification employee.

It also sets out and describes criteria that the FCA will consider when assessing the fitness and propriety of a candidate for a controlled function position and that it may consider when assessing the continuing fitness and propriety of approved persons.

Training and Competence (TC)

TC sets out rules and guidance regarding the competence of a firm’s employees, continuing professional development and associated record keeping requirements.

General Provisions (GEN)

GEN contains rules and guidance on general matters, including interpreting the FCA Handbook, statutory status disclosure, the FCA’s logo and insurance against financial penalties.

Fees manual (FEES)

This manual sets out the fees applying to firms.

Product Intervention and Product Governance Sourcebook (PROD)

The purpose of PROD is to improve firms’ product oversight and governance processes. For funeral plan products, this sets out the systems and controls which need to be established by product manufacturers and distributors to deliver fair value products. PROD also sets out the FCA’s statement of policy on making temporary and permanent product intervention rules.

Supervision manual (SUP)

SUP sets out the relationship between the FCA and firms. As a general rule, SUP contains material that is of continuing relevance after authorisation.

Decision, Procedure and Penalties manual (DEPP)

DEPP sets out:

(1) the FCA’s decision-making procedure for giving statutory notices. These are warning notices, decision notices and supervisory notices (DEPP 1.2 to DEPP 5); and

(2) the FCA’s policy with respect to the imposition and amount of penalties under the Act (see DEPP 6).

Dispute Resolution: Complaints (DISP)

DISP sets out rules and guidance in relation to treating complainants fairly and the Financial Ombudsman Service.

Compensation (COMP)

COMP sets out rules relating to the scheme for compensating consumers when authorised firms are unable, or likely to be unable, to satisfy claims against them.

Professional Firms (PROF)

PROF is relevant to exempt professional firms and authorised professional firms which engage in funeral plan distribution.

The Enforcement Guide (EG)

The Enforcement Guide (EG) describes the FCA’s approach to exercising the main enforcement powers given to it by the Act and by other legislation.

Financial Crime Guide: A firm’s guide to countering financial crime risks (FCG) and Financial Crime Thematic Reviews (FCTR)

FCG and FCTR provide guidance on steps that a firm can take to reduce the risk that it might be used to further financial crime.

The Perimeter Guidance Manual (PERG)

The purpose of PERG is to give guidance about the circumstances in which authorisation is required, or exempt person status is available, including guidance on the activities which are regulated under the Act and the exclusions which are available.

The Unfair Contract Terms and Consumer Notices Regulatory Guide (UNFCOG)

UNFCOG explains the FCA’s policy on how it will use its powers under the Consumer Rights Act 2015 in relation to unfair terms and consumer notices.