SUP 10C.1 1Application
General
This chapter is also relevant to FCA-approved SMF managers of an SMCR firm5.
5SUP 10C Annex 1 (What functions apply to what type of firm) sets out:
- (1)
how this chapter applies to different types of SMCR firm; and
- (2)
the SMCR firms to which no controlled functions in7 this chapter 7apply.
Overseas firms: UK services
2This chapter does not apply to an overseas SMCR firm5 other than in relation to an establishment maintained by it or its appointed representative in the United Kingdom.
EEA firms: general application
This chapter does not apply to an SMCR firm if and in so far as the question of whether a person is fit and proper to perform a particular function in relation to that firm is reserved to an authority in a country or territory outside the United Kingdom as contemplated by section 59(8) of the Act. This rule has effect to the extent that, and for as long as, section 59(8) of the Act remains in effect under the standstill direction (as it relates to that section) as defined in the direction made by the FCA under Part 7 of the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 that came into force on IP completion day and is titled “Main FCA Transitional Directions”.8
25Overseas firms: general
- (1)
2Generally, where an overseas manager of an overseas SMCR firm5 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)
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.
UK firm with overseas branches or providing services on a cross-border basis
There are no territorial limitations to SUP 10C for:
- (1)
overseas branches of UK firms; or
- (2)
UK firms providing services into or out of the United Kingdom on a cross-border basis.
Appointed representatives
This chapter does not deal with an approved person who is approved under SUP 10A (FCA Approved Persons in Appointed Representatives)7.
- (1)
SUP 10A (FCA Approved Persons in Appointed Representatives) deals7 with the approved persons regime for appointed representatives of SMCR firms5.
- (2)
In general this chapter does not apply to appointed representatives of SMCR firms5. SUP 10A applies instead.
- (3)
In theory, a person employed by an appointed representative of an SMCR firm5 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 arise unless the person is seconded to the firm5.
- (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 normally5 arise in practice.
- (5)
6Both this chapter and SUP 10A deal with an appointed representative that has a limited permission to carry on a regulated activity prescribed for the purposes of section 39(1E)(a) of the Act.
Insolvency practitioners
This chapter does not apply to a function performed by a person acting as:
- (1)
an insolvency practitioner within the meaning of section 388 of the Insolvency Act 1986;
- (2)
a nominee in relation to a voluntary arrangement under Parts I (Company Voluntary Arrangements) and VIII (Individual Voluntary Arrangements) of the Insolvency Act 1986;
- (3)
an insolvency practitioner within the meaning of article 3 of the Insolvency (Northern Ireland) Order 1989; or
- (4)
a nominee in relation to a voluntary arrangement under Parts II (Company Voluntary Arrangements) and VIII (Individual Voluntary Arrangements) of the Insolvency (Northern Ireland) Order 1989.
Swiss general insurers
5For Swiss general insurers, references in this chapter to parts of the PRA Rulebook for ‘Solvency II firms’ are to be read as references to the corresponding parts of the PRA Rulebook applying to large non-directive insurers.
5Swiss general insurers are in the large non-directive insurers sector of the PRA Rulebook and the PRA applies to them, in relation to their controlled functions, provisions equivalent to those applying to third country branches in the Solvency II firms sector of the PRA Rulebook. The FCA includes them as third country undertakings of Solvency II firms and so they must follow the requirements for Solvency II firms set out in this chapter.
Insurance and mortgage credit mediation
5See MIPRU 2.2 (Allocation of the responsibility for insurance distribution activity or MCD credit intermediation activity) for how the FCA’s senior managers regime for SMCR firms is adjusted for a firm carrying on insurance distribution activity or MCD credit intermediation activity.