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Status: You are viewing the version of the handbook as on 2011-04-29.

SUP 11.9 Changes in close links

Requirement to notify changes in close links1

SUP 11.9.1R
2
  1. (1)

    A firm must notify the FSA that it has become or ceased to be closely linked with any person. The notification must be made by completing the Close Links Notification Form (see SUP 11.9.3A G) and must include the information set out in SUP 16.5.4 R (4).2

  2. (2)

    If a group includes more than one firm, a single close links notification may be made by completing the Close Links Notification Form and so satisfy the notification requirement for all firms in the group. Nevertheless, the requirement to notify, and the responsibility for notifying, remains with each firm in the group.2

SUP 11.9.2GRP

Guidance on what constitutes a close link is provided in COND 2.3.

SUP 11.9.2AGRP

2A firm may elect not to include the following close links in the notification submitted under SUP 11.9.1 R, SUP 11.9.5 R or SUP 16.5:

  1. (1)

    shares held in its capacity as custodian provided it can only exercise any voting rights attached to such shares under instructions given in writing or by electronic means;

  2. (2)

    shares held in its capacity as collateral taker under a collateral transaction which involves the outright transfer of securities provided it does not declare any intention of exercising (and does not exercise) the voting rights attaching to such shares.

SUP 11.9.3G

The FSA may ask the firm for additional information following a notification under SUP 11.9.1 R in order to satisfy itself that the firm continues to satisfy the threshold conditions (see SUP 2: Information gathering by the FSA on its own initiative).

Form of notification

SUP 11.9.3AG

2The Close Links Notification Form approved by the FSA for notifications under SUP 11.9.1 R, SUP 11.9.5 R and SUP 16.5.4 R (1), may be found at the FSA's website www.fsa.gov.uk/Pages/Doing/Regulated/Notify/index.shtml.

Timing of notification requirement1

SUP 11.9.4R

1The firm must make a notification to the FSA under SUP 11.9.1 R:

  1. (1)

    as soon as reasonably practicable and no later than one month after it becomes aware that it has become or ceased to be closely linked with any person; or

  2. (2)

    where a firm has elected to report on a monthly basis, within fifteen business days of the end of each month by completing the Close Links Notification Form, including the information set out in SUP 16.5.4 R (4) for that month and must submit the group organisation chart on a quarterly basis unless there have been no changes since the submission of the previous organisation chart to the FSA, in which case the group organisation chart is not required.2

    2

Electing to notify changes in close links monthly1

SUP 11.9.5R

1

  1. (1)

    A firm elects to report changes in close links on a monthly basis by sending a written notice of election to the firm's usual supervisory contact at the FSA.

  2. (2)

    An election to report changes in close links on a monthly basis will stand until such time as the firm gives its usual supervisory contact at the FSA at least one month's written notice of its intention to cease reporting changes in close links on a monthly basis.

SUP 11.9.6G

1The FSA considers that monthly reporting of changes in close links will ordinarily only be appropriate for firms forming part of large groups.