This chapter is also relevant to FCA-approved SMF managers of an SMCR firm5.

5 SUP 10C Annex 1 (What functions apply to what type of firm) sets out:

1. (1)

   how this chapter applies to different types of SMCR firm; and

2. (2)

   the SMCR firms to which no controlled functions in7 this chapter 7apply.

1. (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. (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 (FCA Approved Persons in Appointed Representatives) deals7 with the approved persons regime for appointed representatives of SMCR firms5.

2. (2)

   In general this chapter does not apply to appointed representatives of SMCR firms5. SUP 10A applies instead.

3. (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. (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. (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.

5 Swiss 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.

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.

The purpose of SUP 10C is:

1. (1)

   to specify, under section 59 of the Act, descriptions of the FCA-designated senior management functions for SMCR firms2, which are listed in SUP 10C.4.3R; and2

2. (2)

   to specify the manner in which a firm must apply for the FCA's approval under section 59 of the Act and other procedures for FCA-approved SMF managers; 2

1. (1)

   The FCA has certain powers in relation to PRA-approved persons, such as the requirement for FCA consent to the PRA granting approval for the performance of a PRA controlled function. SUP 10C does not deal with these.

2. (2)

   However, SUP 10C.12.1G has material about the FCA's policy on giving its consent to applications made to the PRA about conditional and time-limited approvals for SMF managers in PRA-authorised persons2.

SUP 10C.14 (Changes to an approved person’s details) applies, in certain cases, to PRA-approved persons. Where this is the case, it says so.

This section has general provisions that apply to the definition of all controlled functions.

There are two types of FCA controlled function under the Act:

1. (1)

   an FCA-designated senior management function; and

2. (2)

   an FCA controlled function that is not a designated senior management function.

All the controlled functions that the FCA has specified in this chapter are designated senior management functions. The FCA has not, in this chapter, used its power to specify controlled functions that are not designated senior management functions.

The FCA has (in SUP 10A (FCA Approved Persons in Appointed Representatives)4) specified controlled functions for SMCR firms3 that are not designated senior management functions. 4

1. (1)

   Except as described in SUP 10C.3.4G, in this chapter, FCA controlled function and FCA-designated senior management function cover the same functions.

2. (2)

   Therefore, a function is only covered by SUP 10C.4.3R (Table of FCA-designated senior management 2functions3) if that function meets both the following sets of requirements:

   1. (a)

      the requirements of SUP 10C.3.6R (Definition of FCA controlled function: arrangements); and

   2. (b)

      the requirements of SUP 10C.3.10R (Definition of FCA-designated senior management function).

Section 59(1) and (2) of the Act provide that approval is necessary for an FCA controlled function which is performed under an arrangement entered into by a firm, or its contractor (typically an appointed representative), in relation to a regulated activity.

1. (1)

   Arrangement is defined in section 59(10) of the Act as any kind of arrangement for the performance of a function which is entered into by a firm or any of its contractors with another person.

2. (2)

   Arrangement includes the appointment of a person to an office, a person becoming a partner, or a person's employment (whether under a contract of service or otherwise).

3. (3)

   An arrangement need not be a written contract but could arise by conduct, custom and practice.

If a firm is a member of a group, a person employed elsewhere in the group (for example, by the holding company) who carries out a function in relation to the firm will only perform an FCA controlled function:

1. (1)

   if the function is performed under an arrangement entered into by the firm (under section 59(1)); or

2. (2)

   if:

   1. (a)

      there is a contract (under section 59(2)) between the firm and the relevant group member permitting this; and

   2. (b)

      the function is performed under an arrangement entered into by the contractor.

Section 59ZA(2) of the Act says that a function is a ‘senior management function’, in relation to the carrying on of a regulated activity by a firm, if:

1. (1)

   the function will require the person performing it to be responsible for managing one or more aspects of the firm's affairs, so far as relating to the activity; and

2. (2)

   those aspects involve, or might involve, a risk of serious consequences:

   1. (a)

      for the firm; or

   2. (b)

      for business or other interests in the United Kingdom.

Section 59ZA(3) of the Act says that ‘managing’ includes, for these purposes, taking decisions, or participating in the taking of decisions, about how one or more aspects of the firm's affairs should be carried on.

SUP 10C.3.13R 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-designated senior management function for more than 12 weeks, the firm should apply for approval.

See SUP 10C.12.7G to SUP 10C.12.14G (time-limited approvals) for procedures for temporary appointments longer than 12 weeks.

1. (1)

   3A firm to which SYSC 26 (Senior managers and certification regime: Overall and local responsibility) applies may have allocated responsibilities under that chapter to an SMF manager who is absent under SUP 10C.3.13R.

2. (2)

   SYSC 26.4.6R (Exclusion where the 12-week rule applies) deals with how those responsibilities may be reallocated during the SMF manager’s absence.

3. (3)

   SYSC 26.4.8G explains that SYSC 26.4.6R and SUP 10C.3.13R apply to a person performing the other overall responsibility function or the other local responsibility function as well as to other designated senior management functions.

1. (1)

   3If:

   1. (a)

      a firm allocates any FCA-prescribed senior management responsibilities to an SMF manager; and

   2. (b)

      the SMF manager later becomes absent;

   the firm should reallocate them to another SMF manager.

2. (2)

   The firm may not allocate the absent manager’s FCA-prescribed senior management responsibilities to the person providing cover for that manager unless the person providing cover is also an SMF manager of the firm.

As described in SUP 10C.1.7R to SUP 10C.1.8G (Appointed representatives), SUP 10A (FCA Approved Persons in Appointed Representatives)6 specifies certain other controlled functions for SMCR firms4.

1 SUP 10C.9 (Minimising overlap with the PRA approved persons regime) explains that in many cases a person performing one of the functions set out in SUP 10C.5 or SUP 10C.5A for a PRA-authorised person will not in fact require approval from the FCA to perform the function and will just require PRA approval.

1. (1)

   2An individual sole trader themselves will not need approval to perform any of the FCA governing functions3. Therefore the FCA governing functions3 do not apply to a sole trader with no employees.

2. (2)

   It is possible, although perhaps not likely in practice, that the FCA governing functions3 could apply to staff working for the sole trader.

3. (3)

   In particular, it is possible for the sole trader to give sufficient authority to a staff member that the staff member meets the Glossary definition of a director.

4. (4)

   This might happen, for example, if the sole trader’s business is so large that the sole trader sets up a governing body to run it.

1. (1)

   6Typically a non-directive friendly society will appoint a “committee of management” to direct its affairs.

2. (2)

   However, the governing arrangements may be informal and flexible. If this is the case, the FCA would expect the society to resolve to give responsibility for the carrying on of regulated activities to one individual who is appropriate in all the circumstances.

3. (3)

   The individual in (2) may, for example, have the title of chief executive or similar. The individual would (subject to SUP 10C.5.11G) have to be an FCA-approved person under SUP 10C.5.9R.7

1. (1)

   7In practice, the FCA expects that most non-directive friendly societies will be PRA-authorised persons.

2. (2)

   7Where that is the case, the executive director function will often not apply (see SUP 10C.4A.1G).

6 SUP 10C.5.12R means:

1. (1)

   that being the chief executive of a small non-directive insurer is an FCA controlled function (subject to (4));

2. (2)

   but being chief executive is not an FCA controlled function in its own right but is rolled up into the executive director function;

3. (3)

   that being promoted from executive director to chief executive does not require a new approval from the FCA;

4. (4)

   that being the chief executive is not an FCA controlled function where SUP 10C.4A.1G applies; and

5. (5)

   SUP 10C.5.9R(4) to SUP 10C.5.9R(7) do not apply to the chief executive.

1. (1)

   6The purpose of SUP 10C.5.14R(3) is to make sure that every partner and everyone else performing a function in SUP 10C.5.14R(3) is potentially included in the partner function even if the Glossary definition of partner is not wide enough to cover them all.

2. (2)

   Therefore, for example, the partner function applies to every partner in a firm unless SUP 10C.5.18G applies.

3. (3)

   In practice most functions in SUP 10C.5.14R(3) will also fall within SUP 10C.5.14R(2).

1. (1)

   6SUP 10C.5.14R to SUP 10C.5.17R (Partner function) are drafted to cover all partners and members.

2. (2)

   However, the partner function (as are all FCA-designated senior management functions) is subject to SUP 10C.3.10R (Definition of FCA-designated senior management function).

3. (3)

   The effect is that unless the function performed by the partner or member in question comes within the definition of a senior management function, the function does not come within the partner function. Therefore partners or members who play no part in the management of the firm are unlikely to be performing the partner function.

1. (1)

   7This paragraph SUP 10C.5.20G describes some of the combined effects of SUP 10C Annex 1 2.1R and SUP 10C.5.19R.

2. (2)

   A partner whose only regulated activities are incidental to their professional services, in a firm whose principal purpose is to carry on other than regulated activities, need not be an FCA-approved person.

3. (3)

   What amounts to the principal purpose of the firm is a matter of fact in each case having regard to all the circumstances, including the activities of the firm as a whole.

4. (4)

   Any regulated activities which such a partner carries on are not within the description of the partner function.

7This function is having the responsibility, alone or jointly with one or more others, under the immediate authority of the governing body for the conduct of the whole of the business (or relevant activities) of the firm.

1. (1)

   7A person performing the chief executive function may be a member of the governing body but need not be.

2. (2)

   If the chairman of the governing body is also the chief executive, they will be discharging this function.

3. (3)

   If the responsibility is divided between more than one person but not shared, there is no person exercising the chief executive function.

4. (4)

   But if that responsibility is discharged jointly by more than one person, each of those persons will be performing the chief executive function.

1. (1)

   1As explained in SUP 10C.7.4G, the FCA does not expect a non-executive director ever to perform the other overall responsibility function.

2. (2)

   Therefore, a non-executive director will not need to be approved to perform any FCA-designated senior management function unless they perform one of the FCA-designated senior management functions set out in this section.

1. (1)

   1This section says that being the chair of certain committees is an FCA-designated senior management function.

2. (2)

   If a firm is not otherwise required to have one of the committees described in this section but chooses to set one up anyway:

   1. (a)

      being the chair of that committee is still an FCA-designated senior management function; and

   2. (b)

      this is the case even if the firm is not subject to any requirements of the regulatory system about the matters dealt with by the committee.

3. (3)

   So for example being the chair of the firm’s nomination committee is an FCA-designated senior management function even if the firm:

   1. (a)

      is not required to have a nomination committee by SYSC 4.3A.8R or some other requirement of the regulatory system; and

   2. (b)

      is not subject to any requirements of the regulatory system dealing with nominations to the firm’sgoverning body or the other matters covered by SYSC 4.3A.9R.

4. (4)

   However, nothing in SUP 10C requires a firm to set up one of the committees mentioned in this section if the firm is not required to have that committee by a rule elsewhere in the FCA Handbook or by some other requirement of the regulatory system.

5. (5)

   So for example if a firm is not otherwise required to have a nomination committee nothing in this section requires it to set one up.

6. (6)

   If a firm:

   1. (a)

      is not otherwise required to have one of the committees described in this section;

   2. (b)

      chooses to set it up anyway; and

   3. (c)

      gets approval for the chair of the committee to perform the applicable FCA-designated senior management function;

   then:

   1. (d)

      the firm is free to scrap that committee later; and

   2. (e)

      if it does so, the chair will cease to perform that FCA-designated senior management function.

1See SYSC 4.3A (Management body and nomination committee) for material about nomination committees.

1. (1)

   This provision explains the basis on which the group entity senior manager function is included as a controlled function.

2. (2)

   The basic position is set out in SUP 10C.3.9G. As is the case with all controlled functions in this chapter, the definition of the group entity senior manager function is subject to the overriding provisions in SUP 10C.3.6R, which sets out the requirements of section 59(1) and (2) of the Act.

3. (3)

   This means that unless the firm has an arrangement permitting the performance of these roles by the persons concerned, these persons will not be performing the group entity senior manager function.

4. (4)

   Therefore, the FCA accepts that there will be cases in which a person performing the role described in SUP 10C.5B.1R will not require approval.

5. (5)

   However where there is such an arrangement the function may apply.

1. (1)

   Individuals in the management of a group in which a firm is a subsidiary do not automatically come within the group entity senior manager function because their job relates to the firm.

2. (2)

   The FCA does not aim or expect to approve individuals to perform this function for every firm to which the function potentially applies under SUP 10C Annex 1 (What functions apply to what type of firm) just because the firm is part of a group.

3. (3)

   The FCA would not consider it to be unusual for there to be no one performing the group entity senior manager function for a firm that is a subsidiary in a group.

Whether someone performs the group entity senior manager function should be assessed on a case-by-case basis. The factors to be taken into account include:

1. (1)

   the organisational structures of the group and the firm;

2. (2)

   the split of key responsibilities between the group and firm boards and senior management; and

3. (3)

   whether SMF managers based in the firm have an appropriate level of authority within the group to ensure that the firm complies with the requirements of the regulatory system.

1. (1)

   An individual based elsewhere in a group whose responsibilities in relation to a subsidiary in the group that is a firm are limited to developing the group’s overall strategy is unlikely to be performing the group entity senior manager function.

2. (2)

   The function is more likely to apply to individuals who are directly responsible for implementing the group’s strategy in the firm.

3. (3)

   Therefore, if an individual based elsewhere in the group:

   1. (a)

      is directly responsible for taking decisions about how the firm should conduct its regulated activities; and

   2. (b)

      has not delegated this responsibility to an SMF manager based in the firm;

   it is likely that they will require approval to perform the group entity senior manager function (or, as described in SUP 10C.5B.6G, another designated senior management function).

4. (4)

   If however the firm’s governing body has sufficient discretion in how it applies and responds to proposals coming from group committees or individuals based in parent entities, approval would generally not be required. In this case the individual will be carrying on a group-level function rather than performing a function on behalf of the firm.

5. (5)

   So, where:

   1. (a)

      a firm has in place the required SMF managers based in the firm; and

   2. (b)

      those SMF managers are effective and have sufficient control over the firm;

   the FCA would not routinely expect the firm to have persons performing the group entity senior manager function in place.

1. (1)

   SUP 10C.5B.1R(2) means that an individual who is approved to perform another designated senior management function for a firm will often not need to be approved to perform the group entity senior manager function for that firm as well.

2. (2)

   So for example if the individual has responsibility for the firm’s finances they may be performing the chief finance officer function. If that is the case the individual will not be performing the group entity senior manager function by carrying out the functions of a chief finance officer.

3. (3)

   Similarly an individual who is approved to perform another designated senior management function for the firm may have influence that comes from holding that post in matters falling outside the core duties of that post. For example a chief finance officer of a firm will have important input into decisions that fall outside the core financial control function. That influence does not mean that they are performing the group entity senior manager function.

The group entity senior manager function is potentially relevant:

1. (1)

   whether the individual is located in or outside the United Kingdom; and

2. (2)

   whether the group is headquartered in the United Kingdom or overseas.

1The FCA-designated senior management functions in this section apply even if the firm:

1. (1)

   is not required by the regulatory system to allocate any of these roles to someone; or

2. (2)

   is not subject to any requirements of the regulatory system dealing with the management of the matters referred to in SUP 10C.6A.3R to SUP 10C.6A.6R.

The FCA expects a firm to ensure that a person performing a function in this section for a firm has sufficient expertise and authority to perform that function effectively. A director or senior manager would meet this expectation.

1. (1)

   Risk controls systems include ones designed to deal with the kinds of matters in the risk control requirements for SMCR firms.

2. (2)

   However SUP 10C.6A.4R applies even if the provisions in (1) do not apply to the firm.

1. (1)

   Internal audit covers the kinds of matters in the internal audit requirements for SMCR firms.

2. (2)

   However SUP 10C.6A.6R applies even if the provisions in (1) do not apply to the firm.

1The FCA expects a firm to ensure that a person performing a function in this section for a firm has sufficient expertise and authority to perform that function effectively. A director or senior manager would meet this expectation.

1. (1)

   In SUP 10C.6B.2R technology refers principally to the firm’s information and communications technology (ICT) systems and services.

2. (2)

   Those services include but may not be necessarily limited to the mechanisms and networks that support the operations of a firm, including data entry, data storage, data processing and reporting services, but also monitoring, business and decision support services.

The chief operations function may include but not necessarily be limited to areas such as:

1. (1)

   business continuity (including responsibility for compliance with SYSC 4.1.6R and SYSC 4.1.7R (Business continuity), if those rules apply to the firm);

2. (2)

   cybersecurity;

3. (3)

   information technology;

4. (4)

   internal operations;

5. (5)

   operational continuity, resilience and strategy;

6. (6)

   outsourcing, procurement and vendor management; and

7. (7)

   management of services shared with other group members.

As explained in SYSC 26.11.4G (Overall responsibility for internal operations), if:

1. (1)

   a firm does not have anyone who performs the chief operations function; but

2. (2)

   SYSC 26 (Senior managers and certification regime: Overall and local responsibility) applies to the firm;

the firm should allocate responsibility for the functions in SUP 10C.6B.4G among its SMF managers under SYSC 26.

If a firm is required to have a management responsibilities map, the map should include the functions in SUP 10C.6B.4G, whether or not the firm has someone who performs the chief operations function (see SYSC 25 Annex 1 (Examples of the business activities and functions of an SMCR firm)).

The table in SUP 10C.6B.8G gives examples of how the chief operations function applies.

2The effect of SUP 10C.7.1-2R is that this section only applies to one of the following types of UK SMCR firm:

1. (1)

   an SMCR banking firm; 3

2. (2)

   a Solvency II firm (including a large non-directive insurer) but excluding an insurance special purpose vehicle and certain firms in run-off; and3

3. (3)

   3an enhanced scope SMCR firm.

The table in SUP 10C.7.3G gives examples of how SUP 10C.7.1R(2) works.

For the reasons described in SYSC 26.4.5G2, the FCA does not expect that a non-executive director will ever perform the other overall responsibility function.

1. (1)

   3The purpose of SUP 10C.7.6R (together with SYSC 26.4.9R(2)) is to ensure that a firm can allocate overall responsibility for its legal function to someone who is not an SMF manager. That means that the head of its legal function need not be an SMF manager.

2. (2)

   However, that does not mean that the head of a firm’s legal function cannot be an SMF manager. For example, they could be an executive director performing the executive director function.

4The other local responsibility function only applies to one of the following types of overseas SMCR firm:

1. (1)

   an SMCR banking firm; and

2. (2)

   a Solvency II firm (including a large non-directive insurer) but excluding certain firms in run-off;

but does not apply to any EEA SMCR firm.

The table in SUP 10C.8.3G gives:

1. (1)

   examples of how SUP 10C.8.1R(2) works; and

2. (2)

   other examples of how the other local responsibility function works.

5The guidance in SUP 10C.7.7G also applies to SUP 10C.8.9R.

1. (1)

   1The definition of the EEA branch senior manager function (SMF21) is similar to that of the significant management FCA certification function under SYSC 27.8.4R. However, only the former is an FCA-designated senior management function.

2. (2)

   The main differences are:

   1. (a)

      SUP 10C.8A.2R(2) is not included in the significant management FCA certification function; and

   2. (b)

      the overriding requirements in SUP 10C.3 (General material about the definition of controlled functions) do not apply to the significant management FCA certification function.

1A person performing the EEA branch senior manager function could, for example, be:

1. (1)

   the head of a significant business unit carrying on the activities in SUP 10C.8A.2R(2); or

2. (2)

   a member of a committee (that is, a person who, together with others, has authority to commit the branch) making decisions about those activities.

1When considering whether a business unit is significant for the purposes of SUP 10C.8A.2R, the firm should take into account all relevant factors in the light of the firm’s current circumstances and its plans for the future, including:

1. (1)

   the risk profile of that unit;

2. (2)

   its use or commitment of the firm’s capital;

3. (3)

   its contribution to the profit and loss account;

4. (4)

   the number of employees or approved persons working in the business unit;

5. (5)

   the number of customers; and

6. (6)

   any other factor which makes the unit significant to the conduct of the branch’s affairs.

5This section only applies to a PRA-authorised person.

SUP 10C.9 deals with how the FCA's senior managers4 regime for SMCR firms4 interacts with the PRA's one.

Both the FCA and the PRA may specify a function as a designated senior management function in relation to a PRA-authorised person.

If a person's job for a firm involves performing:

1. (1)

   an FCA-designated senior management function, the firm should apply to the FCA for approval;

2. (2)

   a PRA-designated senior management function, the firm should apply to the PRA for approval;

3. (3)

   both an FCA-designated senior management function and a PRA-designated senior management function, the firm should apply to both the FCA and the PRA for approval (the purpose of SUP 10C.9 is to cut down the need for this sort of dual approval).

The FCA is under a duty, under section 59A of the Act (Specifying functions as controlled functions: supplementary), to exercise the power to specify any senior management function as an FCA controlled function in a way that it considers will minimise the likelihood that approvals need to be given by both the FCA and the PRA for the performance by a person of senior management functions in relation to the same PRA-authorised person.

The FCA and PRA have coordinated their approved person regimes to reduce the amount of overlap.

1. (1)

   SUP 10C.9.8R applies when a firm is seeking approval from the PRA for a candidate to perform a PRA controlled function and the intention is that the candidate will also perform what would otherwise be an FCA governing function once the PRA gives its approval. SUP 10C.9.8R works by disapplying that FCA governing function.

2. (2)

   Where (1) applies, the activities within that FCA governing function are included in the PRA controlled function for which the person has approval. Chapter Two of the part of the PRA's rulebook titled ‘Senior Management Functions’ deals with this. The following parts of the PRA Rulebook deal with this:4

   1. (a)

      Chapter 2 of the part of the PRA Rulebook titled ‘Senior Management Functions’;4

   2. (b)

      Chapter 2 of the part of the PRA Rulebook titled ‘Insurance - Senior Management Functions’;4

   3. (c)

      Chapter 2 of the part of the PRA Rulebook titled ‘Large Non-Solvency II Firms – Senior Management Functions’; 4

   4. (d)

      Chapter 2 of the part of the PRA Rulebook titled ‘Non-Solvency II Firms - Senior Management Functions’;4

   5. (e)

      Chapter 6 of the part of the PRA Rulebook titled ‘Insurance - Senior Managers Regime – Transitional Provisions’; and4

   6. (f)

      Chapter 6 of the part of the PRA Rulebook titled ‘Large Non-Solvency II Firms – Senior Managers Regime – Transitional Provisions’.4

1. (1)

   SUP 10C.9.9G gives some examples of how SUP 10C.9.8R works.

2. (2)

   The examples do not cover the other overall responsibility function because that function does not apply if the person holds any other designated senior management function for the same firm. See the table in SUP 10C.7.3G for examples of how this works.

1. (1)

   The potential FCA governing functions should be recorded in A’s statement of responsibilities and in the firm'smanagement responsibilities map.

2. (2)

   A potential FCA governing function means a function that would have been an FCA governing function but which is not an FCA governing function because of SUP 10C.9.8R.

The PRA cannot give its approval for the performance of a PRA-designated senior management function without the consent of the FCA. The firm does not need to apply to the FCA for that consent.

Under section 59B of the Act (Role of FCA in relation to PRA decisions), the FCA may arrange with the PRA that, in agreed cases, the PRA may give approval without obtaining the consent of the FCA. No such arrangements are currently in force.

This section explains how a firm should apply for approval for a person to perform an FCA-designated senior management function.

1. (1)

   Section 59 of the Act (Approval for particular arrangements) says that a firm must take reasonable care to ensure that no one performs an FCA controlled function (including an FCA-designated senior management function) unless that person is acting in accordance with an approval given by the FCA.

2. (2)

   That means that where a candidate will be performing one or more FCA-designated senior management functions, a firm must take reasonable care to ensure that the candidate does not perform these functions unless they have prior approval from the FCA.

1. (1)

   If a person performs an FCA controlled function (including an FCA-designated senior management function) without approval, it is not only the firm that is accountable. Under section 63A of the Act (Power to impose penalties), if the FCA is satisfied that:

   1. (a)

      a person (‘P’) has at any time performed an FCA controlled function without approval; and

   2. (b)

      at that time P knew, or could reasonably be expected to have known, that P was performing an FCA controlled function without approval;

   it may impose a penalty on P of such amount as it considers appropriate.

2. (2)

   A person performs a controlled function without approval for these purposes if that person is not acting in accordance with an approval given under section 59 (Approval for particular arrangements).

In accordance with section 60 of the Act (Applications for approval), applications must be submitted by, or on behalf of, the firm itself, not by:

1. (1)

   the FCA candidate; or

2. (2)

   (where the FCA candidate works for the firm'sparent undertaking or holding company) by the firm'sparent undertaking or holding company.

1. (1)

   The firm that is employing the FCA candidate to perform the FCA-designated senior management function will usually make the submission itself.

   (SUP 10C.10.7G describes some common situations.)

2. (2)

   Where a firm has outsourced the performance of an FCA-designated senior management function, the details of the outsourcing determines whom the FCA anticipates will submit the FCA-approved persons application forms.

3. (3)

   The firm which is outsourcing is referred to as ‘A’ and the person to whom the performance of the FCA-designated senior management function has been outsourced, or which makes the arrangement for the FCA-designated senior management function to be performed, is referred to as ‘B’. In each situation, A must take reasonable care to ensure that, in accordance with section 59(2) of the Act, no person performs an FCA-designated senior management function under an arrangement entered into by its contractor in relation to the carrying on by A of a regulated activity, without approval from the FCA.

1. (1)

   5The MiFID authorisation and management body change notification ITS6 requires that MiFID investment firms (except credit institutions) submit the Annex III information on a specified template (which is based on one prepared by ESMA and which is9 available at https://www.fca.org.uk/publication/forms/mifid-changes-management-body-form.docx (‘Annex III template’)) where there is a change to a member of the management body or a person who effectively directs the business.

2. (2)

   MiFID investment firms (except credit institutions) need to submit this Annex III template within ten business days of the change in the online notification and application system (also known as Connect).

3. (3)

   SUP 10C.10.9BD explains how this requirement fits in with the requirement6 to submit a Form A6 or Form E.6

4. (4)

   [deleted]6

1. (1)

   6The MiFID authorisation and management body change notification ITS requires that a person applying to be a MiFID investment firm (except a credit institution) should notify the appropriate regulator of information about members of its management body by filling in the template set out in Annex II of the appropriate part of the9MiFID authorisation and management body change notification ITS.

2. (2)

   6This applies whether:

   1. (a)

      the person is applying for authorisation; or

   2. (b)

      the person is a firm applying for a variation of its permission that would turn it into a MiFID investment firm.

3. (3)

   There is no requirement to fill in the MiFID Article 4 SMR Information Form referred to in SUP 10C.10.9BD along with a Form A or Form E.

5Where:6

1. (1)

   there is a change to a member of the management body or person who directs the business of a MiFID investment firm (except a credit institution) that the firm must notify to the appropriate regulator under Annex III of the appropriate part of the9MiFID authorisation and management body change notification ITS; and6

2. (2)

   that change also requires the firm to apply for approval for that member or person to perform an FCA-designated senior management function;6

the firm must submit to the FCA the completed form found in SUP 10C Annex 11D (MiFID Article 4 SMR Information Form) at the same time as submitting the Form A or Form E about the candidate.6

5 MiFID investment firms (except credit institutions) who submit:

1. (1)

   Form A or Form E; and6

2. (2)

   the MiFID Article 4 SMR Information Form;6

about a candidate can complete the Annex III template outlined in SUP 10C.10.9AG6 by cross-referring to any6 information required by the template that has been included6 in the relevant Form A or Form6 E. The template should6 be annexed to the relevant Form A or6 Form E.

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

An application by a firm for the FCA's approval under section 59 of the Act (Approval for particular arrangements) for the performance of an FCA-designated senior management function should be accompanied by a statement of responsibilities about the candidate6.

SUP 10C.11 (Statements of responsibilities) contains more material about statements of responsibilities, including (in particular) about a statement of responsibilities submitted under an application under SUP 10C.10.

A firm to which SYSC 25.9 (Handover procedures and material) applies6 should include in an application a reasonable summary of:

1. (1)

   any handover certificate; and

2. (2)

   any other handover material;

referred to in SYSC 25.96 that relates to the responsibilities that the candidate is to perform.

Under section 60A of the Act, before a firm makes an application for approval, it should be satisfied that the candidate is a fit and proper person to perform the function to which the application relates. In deciding that question, the firm should have particular regard to whether the candidate, or any person who may perform a function on the candidate's behalf:

1. (1)

   has obtained a qualification;

2. (2)

   has undergone, or is undergoing, training;

3. (3)

   possesses a level of competence; or

4. (4)

   has the personal characteristics;

required by FCArules in relation to persons performing functions of the kind to which the application relates.

For guidance on criteria that a firm should use for assessing whether an FCA candidate is fit and proper (including the FCArules referred to in SUP 10C.10.14G), see FIT.

1. (1)

   In England and Wales a firm should get an application form from the Disclosure and Barring Service (DBS) or an umbrella body (a registered body that gives access to DBS checks).

2. (2)

   The firm should ask the candidate to fill in and return the form to the firm. The firm should then send the completed application form to the6 DBS or the firm's umbrella body.

3. (3)

   The firm should then ask the candidate to show the firm the certificate when the candidate receives it from the DBS.

4. (4)

   There is an equivalent procedure in Scotland (involving Disclosure Scotland) and Northern Ireland (involving AccessNI).

The6firm should not send a copy of the certificate to the FCA unless required to do so under SUP 10C.10.18AG or SUP 10C.10.28G (requests for additional information)6.

5 MiFID investment firms (except credit institutions) should provide a copy of the certificate to the FCA6 in cases where they disclose, in accordance with the MiFID authorisation and management body change notification ITS,6 the existence of a criminal conviction in response to the questions in:

1. (a)

   Long Form A; or6

2. (b)

   the6 MiFID Article 4 SMR Information Form6.

If the candidate is employed by a contractor, the firm may ask the contractor to obtain the certificate.

A firm should also check the Financial Services Register as part of its assessment of whether a candidate is fit and proper and to verify the information contained in the application for approval.

If appropriate, a firm should:

1. (1)

   carry out a criminal record check; and

2. (2)

   check any equivalent of the Financial Services Register;

in a jurisdiction outside the UK. This may be appropriate if the candidate has spent time working or living in that jurisdiction.

A firm should consider whether it should take additional steps to verify any information contained in an application to carry out an FCA-designated senior management function or that it takes into account in its assessment of whether a candidate is a fit and proper person.

Please see SYSC 22 (Regulatory references) about the requirement for a firm to ask for references from previous employers.3

1. (1)

   6SUP 10C.10.16R (Criminal records checks) does not require a firm to carry out a criminal records check for the purposes of its annual assessment of the fitness and propriety of its SMF managers under section 63(2A) of the Act.

2. (2)

   The requirement in section 63(2A) of the Act is summarised in SUP 10C.14.24G (Table: Explanation of the sections of the Act mentioned in SUP 10C.14.22R).

The Act sets out the time that the FCA has to consider an application and come to a decision.

In any case6 where the application for approval is made by a person applying for a Part 4A permission, the FCA has until the end of whichever of the following periods ends last:

1. (1)

   the period within which an application for that permission must be determined; and

2. (2)

   the period of three months from the time it receives a properly completed application.

In any other case, it is the period of three months from the time it receives a properly completed application.

The FCA will deal with cases more quickly than this whenever circumstances allow and will try to meet the standard response times published on the website and in its Annual Report. However, the processing time will be longer than the published standard response times if:

1. (1)

   an application is incomplete when received; or

2. (2)

   the FCA has knowledge that, or reason to believe that, the information is incomplete.

Before making a decision to grant the application or give a warning notice, the FCA may ask the firm for more information about the FCAcandidate. If it does this, the three-month period in which the FCA must determine a completed application:

1. (1)

   will stop on the day the FCA requests the information; and

2. (2)

   will start running again on the day on which the FCA finally receives all the requested information.

If there is a delay in processing the application within the standard response time, the FCA will tell the firm making the application as soon as this becomes apparent.

1. (1)

   Application forms must always be completed fully and honestly. Further notes on how to complete the form are contained in each form.

2. (2)

   If forms are not completed fully and honestly, applications will be subject to investigation and the FCA candidate's suitability to be approved to undertake an FCA controlled function will be called into question.

3. (3)

   A person who provides information to the FCA that is false or misleading may commit a criminal offence and could face prosecution under section 398 of the Act, regardless of the status of their application.

The FCA may grant an application only if it is satisfied that the FCA candidate is a fit and proper person to perform the FCA-designated senior management function stated in the application form. Responsibility lies with the firm making the application to satisfy the FCA that the FCA candidate is fit and proper to perform the FCA-designated senior management function applied for.

For further guidance on criteria for assessing whether an FCA candidate is fit and proper for the purposes of SUP 10C.10.31G, see FIT.

The FCA must:

1. (1)

   grant the application;

2. (2)

   grant the application subject to conditions or limitations (see SUP 10C.12 for more information); or

3. (3)

   refuse the application.

Whenever it grants an application, the FCA will confirm this in writing to all interested parties.

If the FCA proposes to take the steps in SUP 10C.10.33G(2) or SUP 10C.10.33G(3)6 in relation to one or more FCA-designated senior management functions, it must follow the procedures for issuing warning and decision notices to all interested parties. The requirements relating to warning and decision notices are in DEPP 2.

Under section 61(5) of the Act (Determination of applications), the firm may withdraw an application only if it also has the consent of:

1. (1)

   the candidate; and

2. (2)

   the person by whom the candidate is or would have been employed, if this is not the firm making the application.

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

1. (1)

   Section 60(2A) of the Act (Applications for approval) says that, if a firm is applying for approval from the FCA or the PRA for a person to perform a designated senior management function, the regulator to which the application is being made must require the application to contain, or be accompanied by, a statement setting out the aspects of the affairs of the firm which it is intended that the person will be responsible for managing in performing the function.

2. (2)

   That statement is a statement of responsibilities.

3. (3)

   A statement of responsibilities includes a statement amended under section5 62A of the Act (see SUP 10C.11.5G).

1. (1)

   This section is about the FCA's requirements for statements of responsibilities.

2. (2)

   However, in the case of a PRA-authorised person,6 where applications and notifications relate both to FCA-designated senior management functions and to PRA ones, the regulators’ requirements are consistent with each other.

3. (3)

   The general material in this section (SUP 10C.11.13D5 to SUP 10C.11.35G) applies to statements of responsibilities submitted in all the cases covered by this section. It covers statements of responsibilities submitted as part of an application for approval or variation and revised statements of responsibilities.

1. (1)

   SUP 10C.10 (Application for approval and withdrawing an application for approval) explains the procedures for applying for approval.

2. (2)

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

3. (3)

   See the table in SUP 10C.11.19G for examples of how the requirements of this section about including statements of responsibilities in applications for approval apply in different situations.

Under 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. More precisely:

1. (1)

   if a firm has made an application (which was granted) to the FCA for approval for a person to perform an FCA-designated senior management function;

2. (2)

   the application contained, or was accompanied by, a statement of responsibilities; and

3. (3)

   since the granting of the application, there has been any significant change in the aspects of the firm's affairs which the FCA-approved SMF manager is responsible for managing in performing the function;

the firm should provide the FCA with a revised statement of responsibilities.

1. (1)

   This paragraph sets out non-exhaustive examples of potential changes which, in the FCA's view, may be significant and thus require the submission of a revised statement of responsibilities.

2. (2)

   A variation of the FCA-approved SMF manager's approval, either at the firm's request or at the FCA's or (in the case of a PRA-authorised person),6PRA's initiative, resulting in the imposition, variation or removal of a condition or time limit, may involve a significant change.

3. (3)

   Fulfilling or failing to fulfil a condition on approval may involve a significant change.

4. (4)

   The addition, re-allocation or removal of any of the following (or part of one):

   1. (a)

      an FCA-prescribed senior management responsibility;

   2. (b)

      (in the case of a PRA-authorised person),6 a PRA-prescribed senior management responsibility5; or2

   3. (c)

      responsibility for a function under SYSC 26 (Senior managers and certification regime: Overall and local responsibility)5;

   may involve a significant change.

5. (5)

   The sharing or dividing of an FCA-prescribed senior management responsibility or, in the case of a PRA-authorised person,6 a PRA-prescribed senior management responsibility,5 that was originally performed by one person between two or more persons may involve a significant change.

6. (6)

   Ceasing to share an FCA-prescribed senior management responsibility or, in the case of a PRA-authorised person,6 a PRA-prescribed senior management responsibility,5 that was originally shared with another, or others, may involve a significant change.

7. (6A)

   Beginning or ceasing to share responsibility for a function under SYSC 26 (Senior managers and certification regime: Overall and local responsibility) may involve a significant change.5

8. (7)

   A change is likely to be significant if it reflects a significant change to the job that the person is doing for the firm. Some factors relevant here include:

   1. (a)

      the importance to the firm of the functions being given up or taken on;

   2. (b)

      whether the FCA-approved SMF manager's seniority in the firm's management changes;

   3. (c)

      whether there are changes to the identity, number or seniority of those whom the FCA-approved SMF manager manages; and

   4. (d)

      whether there are changes to the skills, experience or knowledge needed by the FCA-approved SMF manager for the job.

Broadly, the intention of SUP 10C.11.7D(2) is that there is no need for Form J if the revised statement of responsibilities is being submitted together with Form A, Form E, the MiFID Article 4 SMR Information Form4 or Form I for the same firm.

1. (1)

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

2. (2)

   See the table in SUP 10C.11.19G for examples of how the requirements of this section about submitting revised statements of responsibilities apply in different situations.

3. (3)

   In particular, the table in SUP 10C.11.19G gives examples of how SUP 10C.11.7D(2) and (3) work5.

1. (1)

   See SUP 10C.13 (Variation of conditional and time-limited approvals) for more details about applications to vary an approval.

2. (2)

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

3. (3)

   See the table in SUP 10C.11.19G for examples of how the requirements of this section about submitting statements of responsibilities with applications to vary an approval apply in different situations.

1. (1)

   SUP 10C.11.13D means that, at any time, a firm should have a single document for an FCA-approved SMF manager5 that:

   1. (a)

      contains statements of responsibilities for all designated senior management functions for which that SMF manager has approval; and

   2. (b)

      where relevant, contains statements of responsibilities for all designated senior management functions for which the firm is applying for approval.

2. (2)

   (In the case of a PRA-authorised person), the6 document in (1) should cover PRA-designated senior management functions as well as FCA-designated senior management functions.

3. (3)

   The document should be updated:

   1. (a)

      under section 62A of the Act (see SUP 10C.11.5G); and

   2. (b)

      whenever the firm has to submit statements of responsibilities under this section.

4. (4)

   The FCA and the PRA have coordinated their arrangements so that a PRA-authorised person6 can prepare a single document that will meet the requirements of both regulators about statements of responsibilities.

5. (5)

   The table in SUP 10C.11.19G gives examples of how these requirements work.

If a person is an SMF manager for several firms in a group that are SMCR firms5, there should be a separate document for each firm.

There should be a separate document for each SMF manager in a firm. A firm should not combine statements of responsibilities for several SMF managers.

The requirement for a single document does not prevent the document having an attachment sheet for additional information where SUP 10C Annex 10D5 (the FCA's template for statements of responsibilities) allows this.

The table in SUP 10C.11.19G gives examples of how the requirements in this section for submitting statements of responsibilities (combined, in the case of a PRA-authorised person,6 with the corresponding PRA requirements)5 work in different cases.

1. (1)

   A complete set of current statement of responsibilities means all statements of responsibilities that the firm has provided to the FCA or (in the case of a PRA-authorised person),6PRA as revised under section 62A of the Act and this chapter5.

2. (2)

   A statement of responsibilities is not current if the person in question no longer performs any of the controlled functions5 to which it relates.

1. (1)

   A firm should consider past versions of its statements of responsibilities as an important part of its records and as an important resource for the FCA in supervising the firm.

2. (2)

   Past versions of a firm'sstatements of responsibilities form part of its records under the regulatory system5.

A statement of responsibilities should:

1. (1)

   show clearly how the responsibilities that the SMF manager performs as part of their FCA-designated senior management function fit in with the firm's overall governance and management arrangements; 5

2. (1A)

   be consistent with the statement of responsibilities for the firm’s other SMF managers; and5

3. (2)

   be consistent with the firm'smanagement responsibilities map (if the firm is required to have one).

(See SYSC 25.4.1G and SYSC 25.4.2G5 for more about this.)

1. (1)

   A statement of responsibilities (including its attachment sheet for additional information) should:

   1. (a)

      be complete by itself;

   2. (b)

      not refer to documents not forming part of it; and

   3. (c)

      only contain material about the matters that this chapter, the corresponding PRA requirements (in the case of a PRA-authorised person),6 and the Act say should be included in it.

2. (2)

   For example, if it is necessary to include relevant material from the firm's report and accounts, the statement of responsibilities should not attach the whole of the report and accounts or cross refer to them. Instead it should include a summary of the relevant part only.

A statement of responsibilities should be:

1. (1)

   practical and useable by the FCA;

2. (2)

   without unnecessary detail; and

3. (3)

   succinct and clear.

1. (1)

   SYSC or another part of the regulatory system will generally impose requirements (referred to as ‘prescribed requirements’ in this paragraph) that relate to a particular post or set of responsibilities.

2. (2)

   For instance, these include:

   1. (a)

      the responsibilities that go with the FCA required functions; and

   2. (b)

      the FCA-prescribed senior management responsibilities and5 (in the case of a PRA-authorised person)6 the PRA-prescribed senior management responsibilities5.

      2
3. (3)

   The allocation of responsibilities under a statement of responsibilities should not reduce or alter the scope of any applicable prescribed requirements.

4. (4)

   If:

   1. (a)

      the responsibilities that the SMF manager carries out as described in the statement of responsibilities go beyond the prescribed requirements; or

   2. (b)

      the firm includes additional information about any prescribed requirements;

   the additional responsibilities or additional information should not:

   1. (c)

      reduce or alter the scope of the prescribed requirements; or

   2. (d)

      dilute or undermine the prescribed requirements.

1. (1)

   An example of the requirement that a5firm'sstatements of responsibilities for its SMF managers should be consistent (see SUP 10C.11.23G) is that they should5 together demonstrate that there are no gaps in the allocation of responsibilities among the firm’s5SMF managers.

2. (2)

   A firm'sstatements of responsibilities should be interpreted, where possible, so as to avoid any gaps in the allocation of responsibility for its activities among its SMF managers.

3. (3)

   Paragraphs (1) and (2) apply to a firm to which SYSC 26 (Senior managers and certification regime: Overall and local responsibility) applies5.2

1. (1)

   A statement of responsibilities of an SMF manager should include details about any:

   1. (a)

      FCA-prescribed senior management responsibilities and5 (in the case of a PRA-authorised person)6PRA-prescribed senior management responsibilities5allocated to the SMF manager;

      2
   2. (b)

      (in the case of a PRA-authorised person)6 functions that are included in a PRA controlled function under the arrangements described in5SUP 10C.9 (Minimising overlap with the PRA approved persons regime); 5

   3. (c)

      responsibility for a function allocated to the SMF manager under SYSC 26 (Senior managers and certification regime: Overall and local responsibility) if that chapter applies to the firm; and5

      2
   4. (d)

      responsibilities allocated under MIPRU 2.2 (Responsibility for insurance distribution activity or MCD credit intermediation activity).5

2. (2)

   Paragraph (1)(c) applies even if the responsibility is excluded from the other overall responsibility function under SUP 10C.7.1R(2) (exclusion5 for approved person with approval to perform other controlled functions) or from the other local responsibility function under SUP 10C.8.1R(2) (exclusion5 for approved person with approval to perform other controlled functions2).

1. (1)

   The definition of every FCA-designated senior management function contains a responsibility which is inherent, inseparable from and intrinsically built into the specific role.

2. (2)

   In many ways, this inherent responsibility is the most important responsibility of any given SMF manager, as it provides a rationale as to why that specific function is subject to pre-approval by the FCA in the first place.

3. (3)

   Even where an SMF manager has not been allocated any other responsibilities by the firm, the responsibility inherent in the definition of their FCA-designated senior management function means that they will be accountable for that aspect of the firm's activities.

4. (4)

   For instance, even if a person approved to perform the compliance oversight function has no other responsibilities allocated to them, they will be accountable for the Handbook requirements for the compliance oversight function.

1. (1)

   The FCA may request a firm to include specific responsibility for a regulatory outcome in the statement of responsibilities of the relevant SMF managers.

2. (2)

   For example, where the FCA asks a firm to take remediation action following an internal or supervisory review or a report under section 166 of the Act (Reports by skilled persons) and considers it appropriate for an SMF manager to take responsibility for that action, it may ask the firm to add an additional, customised, explicit responsibility to the relevant SMF manager'sstatement of responsibilities.

1. (1)

   Where a responsibility or function is shared or divided between an SMF manager and others, the statements of responsibilities for each SMF manager concerned should make this clear.

2. (2)

   Where a responsibility or function is divided between an SMF manager and others, the statements of responsibilities for each SMF manager concerned should make it clear for what part of which responsibility or function that SMF manager has responsibility.

3. (3)

   Together, the statements of responsibilities should show which responsibility or function is shared or divided between which SMF managers and, if applicable, between which SMF managers and5 other persons. It should be clear which responsibility or function and which SMF managers or other persons are involved.

1. (1)

   Where:

   1. (a)

      an FCA-prescribed senior management responsibility is divided or shared between several SMF managers5; or

   2. (b)

      any function allocated under SYSC 26 (Senior managers and certification regime: Overall and local responsibility) is shared between several SMF managers (if that chapter applies to the firm)5;

      2

   5the statement of responsibilities for each SMF manager should:

   1. (c)

      explain why this has been done; and

   2. (d)

      give full details of the arrangements, including the names of the other persons and their FCA/PRA Individual Reference Numbers (IRN) (if known).

2. (2)

   Where a responsibility or function is shared between several SMF managers, this should be recorded in the same way in the statements of responsibilities of each of them. This should also be consistent with the firm'smanagement responsibilities map.

1. (1)

   Where two or more SMF managers share a responsibility, each will be individually responsible for everything included in that responsibility, including anything inherent in that responsibility (see SUP 10C.11.29G for inherent responsibilities).

2. (2)

   Where:

   1. (a)

      a responsibility is divided between several SMF managers; but

   2. (b)

      some part of the responsibility has not clearly been allocated to any of them;

   it should be assumed that that part is the joint responsibility of all of them.

In general, the FCA expects the statement of responsibilities of a non-executive director who is an SMF manager to be less extensive than those of an executive SMF manager.

The FCA does not require any of the general duties of a non-executive director described in section 2 of COCON 1 Annex 1 (The general role of a NED) to be included in the non-executive director'sstatement of responsibilities.

1. (1)

   SUP 10C.12 describes the regime for conditional and time-limited approvals.

2. (2)

   In particular, SUP 10C.12 sets out the FCA's policies on giving approval under section 59 subject to conditions or for a limited period only, as required by section 63ZD of the Act (Statement of policy relating to conditional approval and variation).

3. (3)

   (In the case of a PRA-authorised person) the3 policies described in SUP 10C.12 also apply when the FCA is considering whether to give its consent to an application made to the PRA for approval.

4. (4)

   Material on variations of conditional and time-limited approvals can be found in SUP 10C.13 (Variation of conditional and time-limited approvals).