SUP 10C.1 1Application

This chapter is also relevant to FCA-approved SMF managers of a relevant authorised person.

1. (1)

   2SUP 10C.1.4R reflects the provisions of section 59(8) of the Act and, where relevant, the Treaty.

2. (2)

   It preserves the principle of Home State prudential regulation.

3. (3)

   For an EEA relevant authorised person, the effect is to reserve to the Home State regulator the assessment of fitness and propriety of a person performing a function in the exercise of an EEA right. A member of the governing body, or the notified3 UK branch manager, of an EEA relevant authorised person, acting in that capacity, will not, therefore, have to be approved by the FCA under the Act.

4. (4)

   Aside from (1) to (3) an EEA relevant authorised person should have:

   1. (a)

      considered the impact of the Host State rules with which it is required to comply when carrying on a passported activity or a Treaty activity through a branch in the United Kingdom;

   2. (b)

      been notified of those provisions under Part II of Schedule 3 to the Act in the course of satisfying the conditions for authorisation in the United Kingdom; and

   3. (c)

      considered, for example, the position of a branch manager based in the United Kingdom who may also be performing a function in relation to the carrying on of a regulated activity not covered by the EEA right of the firm. In so far as the function is within the description of an FCA controlled function, the firm will need to seek approval for that person to perform that FCA controlled function.

1. (1)

   2Generally, where an overseas manager of a non-UK relevant authorised person has responsibilities in relation to its branch in the United Kingdom that are strategic only, they will not need to be an FCA-approved SMF manager.

2. (2)

   However, where an overseas manager is responsible for implementing that strategy for its branch in the United Kingdom, and has not delegated that responsibility to an SMF manager in the United Kingdom, they will potentially be performing an FCA controlled function if the detailed conditions in this chapter defining the relevant FCA controlled function are met.

There are no territorial limitations to SUP 10C for:

1. (1)

   overseas branches of UK firms; or

2. (2)

   UK firms providing services into or out of the United Kingdom on a cross-border basis.

1. (1)

   SUP 10A.1.15R to SUP 10A.1.16DG (Appointed representatives) deal with the approved persons regime for appointed representatives of relevant authorised persons.

2. (2)

   In general this chapter does not apply to appointed representatives of relevant authorised persons. SUP 10A applies instead.

3. (3)

   In theory, a person employed by an appointed representative of a relevant authorised person could come within one of the controlled functions in this chapter. If so, that person will be performing a senior management function and this chapter would apply. However, the FCA thinks that such a situation should rarely, if ever, arise.

4. (4)

   If a person is an approved person under this chapter and under SUP 10A for the same firm, this chapter applies to FCA-designated senior management functions under this chapter and SUP 10A applies to controlled functions under SUP 10A. It is unlikely that such a scenario would ever arise in practice.