SUP 12.1 Application and purpose
General application
- (1)
This chapter applies to a firm which is considering appointing, has decided to appoint or has appointed an appointed representative.1
- (1A)
This chapter applies to a MiFID investment firm6 which is considering appointing, has decided to appoint or has appointed an FCA registered tied agent6.2
- (1B)
4This chapter applies to a CBTL firm other than a CBTL lender which is considering appointing, has decided to appoint or has appointed an appointed representative in relation to CBTL business as it does to a firm.
- (2)
[deleted]6
1 - (3)
[deleted]6
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Territorial application: compatibility with EU law
Interaction of SUP 12 and other modules in relation to MiFID business
5 In addition to those rules in SUP 12 relating to the MiFID business of appointed representatives and tied agents, there are other obligations derived from MiFID6 in the Handbook relevant to the knowledge and competence of tied agents and related compliance obligations (see SYSC 5.1, TC and FIT (in respect of appointed representatives that are approved persons)). These provisions are subject to the territorial application requirements in their respective chapters.
Territorial application: Gibraltar
7This chapter applies to a Gibraltar-based firm which is considering appointing, has decided to appoint or has appointed an appointed representative in accordance with the general application of this chapter.
Purpose
This chapter gives guidance to a firm, which is considering appointing an appointed representative, on how the provisions of section 39 of the Act (Exemption of appointed representatives) work. For example, it gives guidance on the conditions that must be satisfied for a person to be appointed as an appointed representative. It also gives guidance to a firm on the implications, for the firm itself, of appointing an appointed representative.
The chapter also sets out the FCA's rules, and guidance on these rules, that apply to a firm before it appoints, when it appoints and when it has appointed an appointed representative. The main purpose of these rules is to place responsibility on a firm for seeking to ensure that:
- (1)
its appointed representatives are fit and proper to deal with clients in its name; and
- (2)
clients dealing with its appointed representatives are afforded the same level of protection as if they had dealt with the firm itself.
The FCA’s website includes information about becoming and appointing an appointed representative. This information can be found at https://www.fca.org.uk/firms/appointed-representatives-principals5.
- (1)
guidance about section 39A of the Act, which is relevant to a MiFID investment firm6 that is considering appointing an FCA registered tied agent; and5
- (2)
the FCA’s rules, and guidance on those rules, in relation to the appointment of:5