SUP 5.1 Application and purpose

7In respect of the FCA's power in section 166 of the Act (Reports by skilled persons), the guidance in this chapter applies to a recognised investment exchange in the same way as it applies to a firm.

2SUP 5.5.1R and SUP 5.5.5R apply to former CBTL firms in relation to their CBTL business as guidance and as if:

1. (1)

   a reference to firm in those rules were a reference to a CBTL firm;

2. (2)

   section 166 of the Act were a reference to section 166 of the Act as applied by article 23(2)(b) of the MCD Order; and

3. (3)

   the word “must” were replaced by the word “should”.

2The guidance in SUP 5.2.1G, SUP 5.3, SUP 5.4 (except SUP 5.4.1AG), and SUP 5.5 (except SUP 5.5.10G and SUP 5.5.11G) applies to CBTL firms and former CBTL firms in relation to their CBTL business as if:

1. (1)

   a reference to firm in that guidance included a CBTL firm;

2. (2)

   a reference to a section of the Act were a reference to that section as applied by article 23 of the MCD Order if applicable; and

3. (3)

   a reference to the FCA's functions under the Act were a reference to the FCA's functions under Part 3 of the MCD Order.

This chapter (other than the rules, and guidance on rules, in SUP 5.5 (Duties of firms)) is also relevant to certain unauthorised persons within the scope of section 166 of the Act (Reports by skilled persons) (see SUP 5.2.1 G).

7The purpose of this chapter is to give guidance on the appropriate regulator's use of the power in section 166 (Reports by skilled persons) and section 166A (Appointment of skilled person to collect and update information) of the Act. The purpose is also to make rules requiring a firm to give assistance to a skilled person and, where a firm is required to appoint a skilled person, to include certain provisions in its contract with a skilled person. These rules are designed to ensure that the appropriate regulator receives certain information from a skilled person and that a skilled person receives assistance from a firm.