SUP 12.8 Termination of a relationship with an appointed representative or FCA registered tied agent3

If either the firm or the appointed representative notifies the other that it proposes to terminate the contract of appointment or to amend it so that it no longer meets the requirements contained or referred to in SUP 12.5 (Contracts: required terms), the firm must:2

1. (1)

   complete and submit to the FCA the form in SUP 12 Annex 5 R (Appointed representative termination form) in accordance with the instructions on the form and no more than ten business days after the date of the decision to terminate or so amend the contract or, if later, as soon as it becomes aware that the contract is to be or has been terminated or amended.1

2. (2)

   [deleted]1

3. (3)

   [deleted]1

4. (4)

   [deleted]1

1. (1)

   4Subject to (2A), a5 firm other than a credit union must submit any notification under SUP 12.8.1 R (1) in the form set out in SUP 12 Annex 5 R, online at www.fca.org.uk5 using the FCA's online notification and application system8.

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2. (2)

   A credit union must submit any notification under SUP 12.8.1 R (1) in the form set out in SUP 12 Annex 5 R and in the way set out in SUP 15.7.4 R to SUP 15.7.9 G (Form and method of notification).

3. (2A)

   A firm must submit any notification under SUP 12.8.1 R (1) that relates to an appointed representative whose scope of appointment covers only credit-related regulated activity in the form set out in SUP 12 Annex 5 and in the way set out in SUP 15.7.4 R to SUP 15.7.9 G (Form and method of notification).5

4. (3)

   Where a firm is obliged to submit a notification online under (1), if the FCA's information technology systems fail and online submission is unavailable for 24 hours or more, until such time as facilities for online submission are restored, a firm must submit any notification in the form set out in SUP 12 Annex 5 R and in the way set out in SUP 15.7.4 R to SUP 15.7.9 G (Form and method of notification).

If a contract with an appointed representative is terminated, or if it is amended in a way which gives rise to a requirement to notify under SUP 12.8.1R, a firm must take all reasonable steps to ensure that:

1. (1)

   if the termination is by the firm, the appointed representative is notified in writing before, or if not possible, immediately on, the termination of the contract and informed that it will no longer be an exempt person for the purpose of the Act because of the contract with the firm;

2. (2)

   outstanding regulated activities and obligations to customers are properly completed and fulfilled either by itself or another of its appointed representatives;2

3. (3)

   where appropriate, clients are informed of any relevant changes;

   2
4. (4)

   all the other principals of the appointed representative of which the firm is aware are notified; and11

   2
5. (5)

   11if the termination results in the wind down of relevant business, this is, or will be, undertaken in an orderly way.

3If a MiFID investment firm10 has appointed an FCA registered tied agent10 this section applies to that firm as though the FCA registered tied agent10 were an appointed representative.