PROF 5.3 Reference to other sourcebooks and manuals

The parts of the Handbook in which provisions are disapplied or modified in relation to authorised professional firms when carrying on non-mainstream regulated activities include those described in PROF 5.3.1A G to PROF 5.3.9 G3521

4.3.5 R provides that 4.3.1 R (Disclosure in letters to private customers) does not apply to an authorised professional firm with respect to its non-mainstream regulated activities.

COBS 18.11 12 provides that COBS12 does not apply to an authorised professional firm with respect to its non-mainstream regulated activities, except for:7

1. (1)

   the fair, clear and not misleading rule;12

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2. (1A)

   12the financial promotion rules, but only in limited circumstances;

3. (2)

   (where these are insurance mediation activities) COBS 7 (Insurance mediation)12unless:12

   12
   1. (a)

      the designated professional body of the firm has made rules which implement some or all of articles 12 and 13 of the Insurance Mediation Directive12;7

      12
   2. (b)

      those rules have been approved by the FSA under section 332(5) of the Act; and7

   3. (c)

      the firm is subject to the rules in the form in which they were approved;7

   1212
4. (3)

   COBS 8.1.3 R (Client agreements), except for the requirement to provide information on conflicts of interest.12

   12

TC Appendix 3 11 provides that TC11, which imposes the substantive training and competence requirements for retail clients or customers11, does not apply to an authorised professional firm with respect to its non-mainstream regulated activities.

SYSC 3.2.6A R to SYSC 3.2.6J G and SYSC 6.3 (Financial crime)9

, in relation to money laundering, do8 not apply to authorised professional firms when carrying on non-mainstream regulated activities.

SUP 10.1.18 R provides that SUP 10 (Approved persons) does not apply (except in respect of the required functions) to an authorised professional firm in respect of its non-mainstream regulated activities. So a person such as a partner, whose only regulated activities are incidental to his professional services, in an authorised professional firm whose principal purpose is to carry on activities other than regulated activities, need not be an approved person.

DISP 1.1.5R (3) 10 provides that DISP 1 (Treating complainants fairly10) only applies 12to an authorised professional firm in so far as its mainstream regulated activities are12 concerned. DISP 2.6.7 R further provides that a complaint about an authorised professional firm cannot be handled under the Compulsory Jurisdiction of the Financial Ombudsman Service if it relates solely to non-mainstream regulated activity and can be handled by a designated professional body. This is because such a complaintwill be handled by the relevant professional body.

MAR 4.4.1 R (3) provides that MAR 4, which deals with the endorsement of the City Code on Takeovers and Mergers and the Rules Governing Substantial Acquisitions of Shares, does not have effect in relation to an authorised professional firm in respect of non-mainstream regulated activity.

3 MCOB 1.2.4 G provides that MCOB does not apply to an authorised professional firm with respect to its non-mainstream regulated activities except for MCOB 2.2 (Clear, fair and not misleading communication), MCOB 3 (Financial promotion) and to a limited extent MCOB 4.4 (Initial disclosure requirements).

4 CASS 1.2.4 R provides that with the exception of CASS 1 and the insurance client money chapter, CASS12 does12 not apply to authorised professional firms when carrying on non-mainstream regulated activities. CASS 1.2.5 R further provides that if the non-mainstream regulated activities are insurance mediation activity, CASS 5 (the insurance client money chapter)12 does not apply to an authorised professional firm, if the firm's designated professional body has rules applicable to the firm which implement the Insurance Mediation Directive12 and which are in the form approved by the FSA under section 332(5) of the Act.4

1. (1)

   5ICOB 1.2.10 R provides that ICOB does not apply to an authorised professional firm with respect to its non-mainstream regulated activities , except for:

   1. (a)

      ICOB 2.2 (Clear, fair and not misleading communication);

   2. (b)

      ICOB 3 (Financial promotion);

   3. (c)

      ICOB 4.2.2 R in relation to the information for customers in table ICOB 4.2.8 R items numbered (8), (9) and Note 4 covering complaints and compensation; and

   4. (d)

      those sections in ICOB which implement articles 12 and 13 of the Insurance Mediation Directive12, unless:

      12
      1. (i)

         the designated professional body of the firm has made rules which implement articles of the Insurance Mediation Directive12;

         12
      2. (ii)

         those rules have been approved by the FSA under section 332(5) of the Act; and

      3. (iii)

         the firm is subject to the rules in the form in which they were approved.

2. (2)

   ICOB 1.2.11 G (2) provides that the effect of ICOB 1.2.10 R (4) is that if the relevant designated professional body of an authorised professional firm does not make rules implementing articles 12 and 13 of the Insurance Mediation Directive12 applicable to authorised professional firms those authorised professional firms will need to comply with those sections of ICOB which implement articles 12 and 13 of the Insurance Mediation Directive12, namely ICOB 4.1 to ICOB 4.4 (but not ICOB 4.2.20 R to 4.2.28G), and ICOB 4.8.

   12