SUP 10C.14 1Changes to an FCA-approved person’s details

1. (1)

   An FCA-approved SMF manager's job may change from time to time as a result, for instance, of a change in personal job responsibilities or a firm's regulated activities.

2. (2)

   Where the changes will involve the SMF manager performing one or more FCA-designated senior management functions different from those for which approval has already been granted, an application must be made to the FCA for approval for the SMF manager to perform those FCA-designated senior management functions.

3. (3)

   The firm must take reasonable care to ensure that an individual does not begin performing an FCA-designated senior management function until the FCA has granted FCA-approved SMF manager status to that individual for that FCA-designated senior management function.

4. (4)

   Similarly (in the case of a PRA-authorised person)5, a firm must get the FCA's approval if an individual is to start performing an FCA-designated senior management function in relation to that firm when they already have the PRA's approval to perform a PRA-designated senior management function in relation to that firm.

1. (1)

   A firm should generally use Form E where an approved person is both ceasing to perform one or more controlled functions and needs to be approved in relation to one or more FCA-designated senior management functions within the same firm or group.

2. (2)

   In certain cases, a firm should use Form A.

3. (2A)

   3When a MiFID investment firm (except a credit institution) notifies the FCA of a change using Form A or Form E, it may also have to4 submit the MiFID Article 4 SMR Information Form (see SUP 10C.10.9BD).

4. (3)

   The details can be found in SUP 10C.10.8D to SUP 10C.10.9CG.

If it is proposed that an FCA-approved SMF manager:

1. (1)

   will no longer be performing an FCA-designated senior management function under an arrangement entered into by one firm or one of its contractors; but

2. (2)

   will be performing the same or a different FCA-designated senior management function under an arrangement entered into by a new firm or one of its contractors (whether or not the new firm is in the same group as the old firm);

the new firm will be required to make a fresh application for the performance of the FCA-designated senior management function by that person (see SUP 10C.10 (Application for approval and withdrawing an application for approval) for details)4.

In certain circumstances, when the FCA already has the information it would usually require, a shortened version of the relevant Form A may be completed. See SUP 10C.10.8D to SUP 10C.10.8BD4 for full details.

7Permanently ceasing to perform an FCA-designated senior management function means that that person no longer has approval to perform that function. Permanent cessation does not mean that that person cannot return to perform that function, rather that if they do, they will need fresh approval.

7Examples of when an FCA-approved SMF manager will have permanently ceased to perform an FCA-designated senior management function include moving within a firm (see SUP 10C.14.1G to SUP 10C.14.2G), moving between firms (see SUP 10C.14.3G to SUP 10C.14.4G), resignation, dismissal, retirement, and death.

7In cases of temporary absence (for example sick leave or parental leave) where the firm is keeping the same role open for an FCA-approved SMF manager, approval to perform the relevant FCA-designated senior management function will continue and therefore the firm will not be required to submit a Form C (SUP 10C Annex 5R). See SUP 10C.14.5IG for guidance on interim appointments.

7As a result, an FCA-approved SMF manager who returns to perform the same FCA-designated senior management function following such a temporary absence will not need fresh approval.

7Where a firm is aware that an FCA-approved SMF manager will be absent for more than 12 weeks, that firm can notify the FCA prior to the end of the 12-week period.

1. (1)

   7The duty to notify in SUP 10C.14.18R and the sections of the Act listed in SUP 10C.14.22R continue to apply during a temporary absence.

2. (2)

   Where it would not be appropriate for a firm to require an FCA-approved SMF manager to participate in the assessment required under section 63(2A) of the Act during a temporary absence, it will not be necessary for that person to participate in that assessment in order for the firm to comply with this requirement.

3. (3)

   Notwithstanding the guidance at (2), on an FCA-approved SMF manager’s return to a firm, the firm should consider whether it may be necessary to refresh any aspects of the assessment taking into account that the relevant person is now able to participate.

1. (1)

   7Under section 62A of the Act, a firm must provide the FCA with a revised statement of responsibilities if there has been any significant change in the responsibilities of an FCA- approved SMF manager.

2. (2)

   SUP 10C.11.6G(6B) explains when a firm should submit a revised statement of responsibilities for an FCA-approved SMF manager who is temporarily absent and that the firm should also submit a revised statement of responsibilities on their return.

3. (3)

   The requirement to submit a revised statement of responsibilities is in addition to the requirement to submit a Form D (SUP 10C Annex 6R).

1. (1)

   7Where an FCA-approved SMF manager is temporarily absent (see SUP 10C.14.5CG), a firm may decide to appoint another person to perform that FCA-designated senior management function during the interim period.

2. (2)

   Where the FCA-approved SMF manager was performing a FCA required function, the firm will be required to make an interim appointment.

3. (3)

   Unless SUP 10C.3.13R (The 12-week rule) applies, the firm will be required to make a fresh application for the performance of the FCA-designated senior management function by the person who has been appointed for the interim period (see SUP 10C.10 (Application for approval and withdrawing an application for approval)). It may be appropriate for the appointment to be time limited (see SUP 10C.12.7G to SUP 10C.12.14G (time-limited approvals) for details)).

4. (4)

   The firm will be required to notify the FCA under SUP 10C.14.5R when the person who was appointed for the interim period gives up the role on the return of the person who was temporarily absent.

5. (5)

   A firm should consider what steps it should take in respect of handover procedures in relation to any interim appointment and the return of a person who is temporarily absent (see SYSC 25.9 (Handover procedures and material)).

7If a firm is required to have a management responsibilities map, the map should be revised where appropriate to reflect any change in its management and governance arrangements as a result of a temporary absence described in SUP 10C.14.5CG to SUP 10C.14.5IG. In particular, a firm should update the map to take into account any temporary absence required to be notified under SUP 10C.14.5ER or SUP 10C.14.5FG, any interim appointment described in SUP 10C.14.5IG or any return from temporary absence described in SUP 10C.14.5ER (see SYSC 25.2 (Management responsibilities maps: Main rules)).

SUP 10C.15 (Forms and other documents and how to submit them to the FCA) explains how notifications should be submitted.

1. (1)

   4The MiFID authorisation and management body change notification ITS requires that a MiFID investment firm (except a credit institution) submit the information in Annex III of the appropriate part of the6 MiFID authorisation and management body change notification ITS on the Annex III template referred to in SUP 10C.10.9AG6 where there is a change to a member of the management body or a person who effectively directs the business.

2. (2)

   This means that a MiFID investment firm required to notify the FCA under (1) may also need to submit the Annex III information along with the Form C or Form E.

3. (3)

   See SUP 10C.10.9AAG to SUP 10C.10.9CG for more about these notification requirements in a case in which the firm is applying for approval under section 59 of the Act (Approval for particular arrangements).

1. (1)

   Notification under SUP 10C.14.7R may be made by telephone, email or fax and should be made, where possible, within one business day of the firm becoming aware of the information.

2. (2)

   Oral notifications should be given directly to the firm's usual supervisory contact at the FCA. An oral notification left with another person or left on a voicemail, or other automatic messaging service, is unlikely to have been given appropriately.

A firm is responsible for notifying the FCA if any FCA-approved SMF manager has permanently7 ceased to perform an FCA-designated senior management function under an arrangement entered into by its contractor or where any such FCA-approved SMF manager is temporarily absent7.

1. (1)

   A firm can submit Form C or Form E (and any MiFID Article 4 SMR Information Form3 required by SUP 10C.10.9BD)4 to the FCA in advance of the cessation date.

2. (2)

   If the actual cessation date turns out to be different from the one notified in advance, the firm should notify the FCA.

3. (3)

   If the firm:4

   1. (a)

      does not submit Form C (including a qualified one) following notification under SUP 10C.14.7R; or4

   2. (b)

      submits a form in advance under (1) but it turns out that there is no requirement to have done so (because for example the approved person is staying in post);4

   it should inform the FCA in due course of the reason. This could be done using Form D, if appropriate.

   3

1. (1)

   When a person ceases the arrangement under which they perform an FCA-designated senior management function, they will automatically cease to be an FCA-approved SMF manager in relation to that FCA-designated senior management function.

2. (2)

   A person can only be an FCA-approved SMF manager in relation to a specific FCA-designated senior management function. Therefore, a person is not an FCA-approved SMF manager during any period between ceasing to perform one FCA-designated senior management function (when they are performing no other FCA-designated senior management function) and being approved for another FCA-designated senior management function.

Sending forms promptly will help to ensure that any fresh application can be processed within the standard response times.

The duty to notify in SUP 10C.14.13R does not apply to changes to an FCA-approved SMF manager's private address.

SUP 10C.15 (Forms and other documents and how to submit them to the FCA) explains how notifications should be submitted.

1. (1)

   Under section 62A of the Act, a firm should provide the FCA with a revised statement of responsibilities if there has been any significant change in the responsibilities of an FCA-approved SMF manager.

2. (2)

   Details can be found in SUP 10C.11 (Statements of responsibilities).

SUP 10C.15 (Forms and other documents and how to submit them to the FCA) applies to the submission of Form D.

Failing to disclose relevant information to the FCA may be a criminal offence under section 398 of the Act.

The duty to notify in SUP 10C.14.18R extends to any circumstances that would normally be declared when giving the information required for section 5 of Form A or matters considered in FIT 2.

The table in SUP 10C.14.24G4 summarises what the relevant parts of the sections of the Act listed in SUP 10C.14.22R4 say.

1. (1)

   When considering how to notify the FCA under SUP 10C.14.18R or SUP 10C.14.22R, a firm should have regard to the urgency and significance of a matter. If appropriate, the firm should also notify its usual supervisory contact at the FCA by telephone or by other prompt means of communication, before submitting a written notification.

2. (2)

   Oral notifications should be given directly to the firm's usual supervisory contact at the FCA. An oral notification left with another person or left on a voicemail, or other automatic messaging service, is unlikely to have been given appropriately.

1. (1)

   The obligations to supply information to the FCA under:

   1. (a)

      SUP 10C; or

   2. (b)

      the sections of the Act listed in SUP 10C.14.22R;

   apply notwithstanding any agreement (for example, a 'COT 3' Agreement settled by the Advisory, Conciliation and Arbitration Service (ACAS)) or any other arrangements entered into by a firm and an employee upon termination of the employee's employment.

2. (2)

   A firm should not enter into any such arrangements or agreements that could conflict with its obligations under this section or the Act.

Failing to disclose relevant information to the FCA may be a criminal offence under section 398 of the Act.

If a firm is required to notify the FCA about a PRA-approved SMF manager who is not an FCA-approved SMF manager under one of the sections of the Act referred to in SUP 10C.14.28R, it should make a single notification under the PRA's requirements. There is no need for a separate notification to the FCA.