GEN TP 1 Transitional provisions

(1)

The purpose of these transitional provisions is to assist a smooth transition at commencement. They comprise various technical provisions that will apply across the whole Handbook and achieve results that most people would probably expect to apply in any event.

(2)

These transitional provisions consist of general transitional provisions, which apply at a high level of generality, and more specific transitional provisions in relation to record keeping and notification rules.

(3)

The more specific transitional provisions relating to record keeping and notification rules override the general transitional provisions. Both the general and the more specific transitional provisions do not apply if the context requires otherwise and are subject to any more specific transitional provision elsewhere in the Handbook relating to the matter. For example, COB contains transitional provisions relating to various matters which are limited in duration and which override these transitional provisions in relation to those matters.

(4)

Definitions for these transitional provisions, additional to those in the Glossary, are provided at paragraph 17 of the table.

1

Every rule in the Handbook, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Acts under pre-commencement provisions

Anything done, or having effect as done, under or for the purposes of any pre-commencement provision has effect as if done under or for the purposes of any substantially similar provision in the Handbook.

From commencement of the relevant rule in the Handbook

See schedule of Transitional provisions of the relevant rule

2

Paragraph 1

G

For example, a firm may rely on action to establish the best price, taken shortly before commencement for the purposes of an applicable SRO best execution rule, for the purposes of compliance with COB 7.5.5 R (1) (Providing best execution), even if the transaction is executed after commencement.

As paragraph 1

As paragraph 1

3

As paragraph 1

R

Achieving compliance before commencement.

Anything done before commencement for the purposes of a provision in the Handbook has effect as if done under that provision.

As paragraph 1

As paragraph 1

4

Paragraph 3

G

For example, a firm may allocate responsibility for apportionment and oversight for the purposes of SYSC 2.1.3 R (Apportionment of responsibilities) before commencement, so as to be in compliance at commencement.

As paragraph 1

As paragraph 1

5

As paragraph 1

R

Series of events

If the application of any provision in the Handbook is dependent on the occurrence of a series of events, some of which occur before, and some of which occur after, commencement, the provision applies with respect to the events that occur after commencement.

As paragraph 1

As paragraph 1

6

Paragraph 5

G

For example, a firm which executes an aggregated order shortly before commencement must comply with COB 7.7.9 R (Requirement for fair allocation) if the allocation occurs after commencement.

As paragraph 1

As paragraph 1

7

As paragraph 1

R

Deemed references to pre-commencement provisions

Any reference (express or implied) in a provision in the Handbook to a provision of or made under the Act is to be read (so far as the context permits and according to the context) as being or including, in relation to times, circumstances and purposes before commencement, a reference to any substantially similar pre-commencement provision applicable to the firm.

As paragraph 1

As paragraph 1

8

Paragraph 7

G

For example, SUP 11.6.4 R requires certain firms to notify the FSA when a change in control, previously notified under SUP 11.4.2 R, has taken place. Such a firm must notify a change in control that takes place after commencement, even if previously notified under a pre-commencement provision rather than under SUP 11.4.2 R (and SUP 11.6.4 R is to be read as referring to that pre-commencement provision).

Another example is SUP 3.10.6R, which requires an auditor's report on client assets to be provided not more than 53 weeks after the period covered by the previous report on such matters. For the first report after commencement, the period runs from that covered by the report under any substantially similar pre-commencement provision (because of an implied reference to that provision).

As paragraph 1

As paragraph 1

9

As paragraph 1

R

Time starting before commencement

If, at commencement, time has begun to run for any purpose under any pre-commencement provision applicable to a firm, then:

(1) time will be regarded as having started to run, for the purposes of any substantially similar provision in the Handbook, when it started to run for that other purpose; and

(2) the firm will be relieved of its obligation to comply with the relevant pre-commencement provision if and to the extent that it complies with the substantially similar provision as extended by this transitional provision.

As paragraph 1

As paragraph 1

10

Paragraph 9

G

For example, a UK bank was required to submit Form LE2 within 10 business days after its quarter end by the FSA's Guide to Banking Supervisory Policy. If the quarter end fell five days before commencement, the UK bank must still submit the report within 10 business days, but in accordance with SUP 16.7.8 R (Financial reports: banks).

As paragraph 1

As paragraph 1

11

Every rule in the Handbook requiring a record to be made or retained (see schedule 1), unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Record keeping

A firm will not contravene a rule in the Handbook requiring a record to be made or retained to the extent that the firm:

(1) made a record of the matter before mortgage lender in accordance with the rule or with a substantially similar pre-commencement provision applicable to the firm; and

(2) retains that record as if the rule was in force when the record was made.

From commencement of the relevant rule in the Handbook

See schedule of Transitional provisions of the relevant rule

12

Paragraph 11

G

This transitional provision makes specific provision, in relation to record keeping, for the matters covered by paragraphs 1 and 3. It is included for clarity and overrides those general transitional provisions.

As paragraph 11

As paragraph 11

13

As paragraph 11

R

A firm must retain a record in accordance with a rule in the Handbook requiring a record of that sort to be retained, if the firm was required to make and retain that record before commencement under a substantially similar pre-commencement provision applicable to the firm.

As paragraph 11

As paragraph 11

14

Paragraph 13

G

This transitional provision makes specific provision, in relation to records, for the matters covered by paragraphs 7 and 9. It is included for clarity and overrides those general transitional provisions.

As paragraph 11

As paragraph 11

815

Every notification rule in the Handbook (see schedule 2), unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Notification

A firm (or its auditoror actuary appointed under SUP 4 (Actuaries))8 will not contravene a notification rule in the Handbook to the extent that notice of the relevant matter was given to the firm's previous regulator before commencement in accordance with:

(1) the notification rule; or

(2) a substantially similar pre-commencement provision applicable to the firm.

From commencement of the relevant rule in the Handbook

See schedule of Transitional provisions of the relevant rule

16

Paragraph 15

G

This transitional provision makes specific provision, in relation to notifications, for the matters covered by paragraphs 1 and 3. It is included for clarity and overrides those general transitional provisions.

As paragraph 15

As paragraph 15

17

Paragraphs 1 to 16

R

Definitions

In these transitional provisions:

(1) “pre-commencement provision” means a provision repealed or revoked by or under the Act or a rule or guidance of the firm's previous regulator, including (where the context permits) any relevant provision which it replaced before commencement;

As paragraph 1

As paragraph 1

(2) “substantially similar” means substantially similar in purpose and effect; and

(3) a reference to a “provision” in the Handbook means every type of provision, including rules, guidance, provisions in codes, and so on.

18

Paragraphs 19 to 22

G

Application for provisions which are not rules

The purpose of paragraphs 19 to 22 is to ensure that the transitional provisions in paragraphs 1 to 10 apply throughout the Handbook.

As paragraphs 19 to 22

As paragraphs 19 to 22

19

Statements of Principle unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

P

The provisions in paragraphs 1 to 10 apply to every approved person as if the rules in those paragraphs were part of the Statements of Principle.

From commencement of the relevant Statement of Principle

See schedule of Transitional provisions for APER

20

Code of Practice for Approved Persons and Code of Market Conduct unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

E

The provisions in paragraphs 1 to 10 apply to every approved person and every person to whom the Code of Market Conduct applies as if the rules in those paragraphs were part of the Code of Practice for Approved Persons and the Code of Market Conduct respectively.

From commencement of the relevant provision of the Code

See schedule of Transitional provisions for APER and MAR

21

Directions and requirements in the Handbook (that is, provisions with the status letter “D” in the margin or heading) unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

D

The provisions in paragraphs 1 to 10 apply to every person to whom a direction or requirement in the Handbook applies as if the rules in those paragraphs were part of that direction or requirement .

From commencement of the relevant direction or requirement

See schedule of Transitional provisions of the relevant direction or requirement

22

Guidance (and other provisions with the status letter “G” in the margin or heading) in the Handbook unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

G

The provisions in paragraphs 1 to 10 are also relevant to every person to whom any other guidance (or other provision with the status letter “G” in the margin or heading) in the Handbook is relevant as if the rules in those paragraphs were part of that guidance (or other provision).

From commencement of the relevant provision

See schedule of Transitional provisions of the relevant provision

23

Every rule in the Handbook made by the FSA

R

Expired10

24

Paragraph 23 and guidance in the Handbook other than in:•COND; •APER; •FIT; •AUTH; •PROF ;•MAR 1

G

10Expired10

54

GEN 6.14

R

4GEN 6.1 does not:

(1) apply to an unamended contract of insurance, first entered into on or before 24 July 2003; or

(2) prohibit a firm from claiming on, or making a payment under, a contract of insurance:

(a) in connection with a financial penalty imposed by the FSA pursuant to a warning notice issued before 25 July 2003; or

(b) first entered into between 25 July 2003 and 31 December 2003 in respect of a financial penalty imposed by the FSA by a final notice issued on or before 31 December 2003.

(For these purposes only, a contract of insurance will be regarded as unamended if:

(i) it was amended on or before 24 July 2003; or

(ii) it was amended after 24 July 2003, but the amendments did not affect the duration or scope of any indemnity against a financial penalty imposed by the FSA under the Act.)

4From 1 January 2004

41 January 2004