GEN TP 2 Transitional Provisions applying across the FCA and PRA Handbooks

(1)

The purpose of these transitional provisions is to assist a smooth transition at cutover. They comprise various technical provisions that will apply across the whole FCA and PRA Handbooks 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 FCA and PRA Handbooks relating to the matter.

(4)

Definitions for these transitional provisions, additional to those in the Glossary, are provided at paragraph 15 of the table.

1

Every provision in the FCA and PRA Handbooks, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Acts under pre-cutover provisions

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

FCA and PRA Handbooks.

From cutover

Cutover

2

Paragraph 1

G

For example, a firm may rely on action to establish the best price, taken shortly before cutover for the purposes of the FSA's best execution rule, for the purposes of compliance with the FCA's best execution rule, even if the transaction is executed after cutover.

From cutover

Cutover

3

Every provision in the FCA and PRA Handbooks, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Series of events

If the application of any provision in the

FCA or PRA Handbooks

is dependent on the occurrence of a series of events, some of which occur before, and some of which occur after, cutover, the provision applies with respect to the events that occur after cutover.

From cutover

Cutover

4

Paragraph 3

G

For example, a firm which executes an aggregated order shortly before cutover must comply with COBS 11.3.8 R (Requirement for fair allocation) if the allocation occurs after cutover.

From cutover

Cutover

5

Every provision in the FCA and PRA Handbooks, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Deemed references to pre-cutover provisions

Any reference (express or implied) in a provision in the

FCA or PRA Handbooks

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 cutover, a reference to any substantially similar pre-cutover provision.

From cutover

Cutover

6

Paragraph 5

G

For example, SUP 11.6.4 R requires a firm authorised by the FCA to notify the FCA 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 cutover, even if previously notified under SUP 11.4.2 R as made by the FSA (and SUP 11.6.4 R is to be read as referring to that pre-cutover provision).

From cutover

Cutover

7

Every provision in the FCA and PRA Handbooks, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter

R

Time starting before cutover

If, at cutover, time has begun to run for any purpose under any pre-cutover provision applicable to a firm or other person, then: (1) time will be regarded as having started to run, for the purposes of any substantially similar provision in the

FCA or PRA Handbooks

, when it started to run for that other purpose; and (2) the firm or other person will be relieved of its obligation to comply with the relevant pre-cutover provision if and to the extent that it complies with the substantially similar provision as extended by this transitional provision.

From cutover

Cutover

8

Paragraph 7

G

For example, certain firms were required to submit product sales data reports within 20 business days of the end of the quarter by SUP 16.11.3 R as made by the FSA. If the quarter end fell five days before cutover, the firms must still submit the report within 20 business days, but in accordance with SUP 16.7.8 R as made by the FCA.

From cutover

Cutover

9

Every rule in the FCA and PRA Handbooks 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 or other person will not contravene a rule in the

FCA or PRA Handbooks

requiring a record to be made or retained to the extent that the firm or other person:

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

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

From cutover

Cutover

10

Every rule in the FCA and PRA Handbooks 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

G

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

From cutover

Cutover

11

Every rule in the FCA and PRA Handbooks 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

A firm or other person must retain a record in accordance with a rule in the FCA or PRA Handbooks requiring a record of that sort to be retained, if the firm or other person was required to make and retain that record before cutover under a substantially similar pre-cutover provision applicable to the firm or other person.

From cutover

Cutover

12

Paragraph 9

G

This transitional provision makes specific provision, in relation to records, for the matters covered by paragraphs 5 and 7. It is included for clarity and overrides those general transitional provisions.

From cutover

Cutover

13

Every notification rule in the FCA and PRA Handbooks (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 auditor, appointed actuary or appropriate actuary) or other person will not contravene a notification rule in the

FCA or PRA Handbooks

to the extent that notice of the relevant matter was given to the FSA before cutover in accordance with:

(1) the notification rule; or

(2) a substantially similar pre-cutover provision applicable to the firm or other person.

From cutover

Cutover

14

Paragraph 13

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.

From cutover

Cutover

15

As paragraphs 1 to 14

R

Definitions

In these transitional provisions:

(1) "pre-cutover provision" means a provision repealed or revoked by, or under, the Financial Services Act 2012 or a rule or guidance of the FSA, including (where the context permits) any relevant provision which it replaced before cutover;

From cutover

Cutover

(2) "substantially similar" means substantially similar in purpose and effect; and

(3) a reference to a "provision" in the FCA or PRA Handbooks means every type of provision, including rules, guidance, provisions in codes, and so on.

16

Paragraph 17

G

Application for provisions which are not rules

The purpose of paragraph 17 is to ensure that the transitional provisions in paragraphs 1 to 8 apply throughout the

FCA and PRA Handbooks.

From cutover

Cutover

17

Statements of Principle, the Code of Practice for Approved Persons and Code of Market Conduct and directions and requirements and guidance and other provisions in the FCA Handbook and PRA Handbook (that is, provisions with the status letter "D" or "G" in the margin or heading) 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 person to whom the provisions referred to in column (2) apply as if the rules in those paragraphs were part of those provisions.

From cutover

Cutover