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    2014-01-01

SUP 10A.5 Significant-influence functions

What are the FCA significant-influence functions?

Definition of FCA significant-influence function

SUP 10A.5.2RRP

Each FCA significant-influence function is one which comes within the definition of a significant-influence function.

SUP 10A.5.3GRP

Section 59(7B) of the Act says that a significant-influence function, in relation to the carrying on of a regulated activity by a firm, means a function that is likely to enable the person responsible for its performance to exercise a significant influence on the conduct of the firm's affairs, so far as relating to the activity.

SUP 10A.5.4G

SUP 10A.5.2 R gives effect to section 59(5)(b) of the Act.

SUP 10A.5.5GRP

Whether an FCA controlled function is likely to result in the person responsible for its performance exercising significant influence on the conduct of the firm's affairs is a question of fact in each case. The FCA has identified the FCA significant-influence functions as satisfying this condition.

Periods of less than 12 weeks

SUP 10A.5.6RRP

If:

  1. (1)

    a firm appoints an individual to perform a function which, but for this rule, would be an FCA significant-influence function;

  2. (2)

    the appointment is to provide cover for an approved person whose absence is:

    1. (a)

      temporary; or

    2. (b)

      reasonably unforeseen; and

  3. (3)

    the appointment is for less than 12 weeks in a consecutive 12-month period;

the description of the relevant FCA significant-influence function does not relate to those activities of that individual.

SUP 10A.5.7GRP

SUP 10A.5.6 R enables cover to be given for, as an example, holidays and emergencies and avoids the need for the precautionary approval of, for example, a deputy. However, as soon as it becomes apparent that a person will be performing an FCA controlled function for more than 12 weeks, the firm should apply for approval.