SUP TP 1 Transitional provisions

Definitions for these transitional provisions, additional to those in the Glossary, are provided at paragraph 16 of the table.

1

SUP 3.3.2 R (1)

R

Auditors

A firm will not contravene SUP 3.3.2 R (1), if the office of auditor is filled at commencement. The auditor filling the office at that time will be deemed to be appointed under SUP 3.3.2 R.

From commencement

Commencement

2

SUP 3.9 and SUP 3.10

R

An auditor of a firm will not contravene arule in SUP 3.9 or SUP 3.10 to the extent that:

From commencement for 2 years

Commencement

(1)

a report submitted under that rule relates to a period which ended before commencement and was prepared in accordance with, and submitted within the time permitted by, a substantially similar pre-commencement provision (whether applicable to the auditor or the firm audited); or

(2)

a report submitted under that section relates to a period which ended on or after commencement and, as regards any part of that period prior to commencement, relates to compliance by the firm with the relevant pre-commencement provision.

3

SUP 3.9.4 R

R

(1)

Paragraph (2) applies to an auditor of a firm to whom SUP 3.9 applies if:

From commencement for one year

Commencement

(a)

the firm is an ex-section 43 firm, or was a member ofSFA, IMRO or PIA immediately before commencement;

(b)

a report equivalent to that required under SUP 3.9 has not been submitted to the firm's previous regulator in respect of thefirm's last accounting reference date; and

(c)

the period for submission of that report under the rules and guidance of that regulator is still running.

(2)

An auditor in (1) must submit such a report in accordance with the rules and guidance of the previous regulator (as if those provisions applied directly to the auditor).

3A

SUP 3.10

R

(1)

Paragraphs (2) and (3) apply to the auditor of anauthorised professional firm:

From commencement for six months

Commencement

(a)

if that firm has anaccounting reference datebetween 1 June 2001 and 30 November 2001 (inclusive); and

(b)

in relation to delivery of a client assets report on that firm for the period ending on thataccounting reference date.

(2)

An auditor will not contravene SUP 3.10.4 R, SUP 3.10.5 R, SUP 3.10.9 R or SUP 3.10.10 R by delivering a report in the format required by the rules of the firm's previous regulator for client asset reports.

(3)

SUP 3.10.7 R is changed so that the period for delivery of the report is the longer of:

(a)

four months from the firm's accounting reference date; and

(b)

the period permitted under the rules of the firm's previous regulator.

3B

SUP 3.10.6 R, SUP 3.10.7 R

G

Auditors affected by paragraph 3A are reminded that:

From commencement for six months

Commencement

(1)

If the report has been delivered to the firm's previous regulator before commencement, it need not be delivered to the FSA (paragraph 7 of the transitional provisions in GEN); in this case, the first report to the FSA should cover a period ending not more than 53 weeks after the period covered by the last report to theprevious regulator;

(2)

a report delivered after commencement should be submitted and addressed to the FSA in accordance with SUP 16.3.6 RtoSUP 16.3.13 R; and

(3)

the auditor is free to fulfil its duty to deliver a report to the FSA by doing so before commencement (paragraph 3 of the transitional provisions in GEN).

3C

SUP 3.10

R

(1)

Paragraph (2) applies to an auditor of a firm if:

From commencement for 13 months

Commencement

(a)

the last client assets report delivered to the firm's previous regulator covered a period ending between 1 and 31 December 2000 (inclusive); and

(b)

the period covered by the first client assets report on the firm delivered to the FSA ends on 30 November 2001.

(2)

An auditor will not contravene SUP 3.10 to the extent that any of the following apply:

(a)

the auditor delivers the first client assets report on the firm to the FSA within a period of 53 weeks plus four months after the end of the period covered by the last report delivered to the firm's previous regulator;

(b)

the first client assets report on the firm relates to compliance by the firm with the relevant pre-commencement provision;

(c)

the period covered by the second client assets report on the firm delivered to the FSA ends not later than 31 December 2002.

4

SUP 4.3.1 R (1) and SUP 4.4.1 R (1)

R

Actuaries

A firm will not contravene SUP 4.3.1 R (1) or SUP 4.4.1 R (1) to the extent that the office of appointed actuary or appropriate actuary, respectively, is filled as at commencement and the appointment was made in accordance with relevant statutory requirements.

From commencement

Commencement

4A13

SUP 413

R13

Anything done before 31 December 2004 for the purposes of an amended provision in SUP 4 has effect as if done under that provision.13

From 31 December 200413

31 December 200413

4B13

SUP 4.3.1 R13

R13

A firm must notify the FSA immediately of all appointments under SUP 4.3.1 R (as amended) which come into, or are in, effect on 31 December 2004, advising the FSA of the name and business address of each actuary appointed and the functions each actuary is to perform.13

From 31 December 200413

31 December 200413

4C13

SUP 4.5.9 R

R

An actuary, who immediately before 31 December 2004 is the appointed actuary of a firm, must notify the FSA under SUP 4.5.9 R (as amended) if on that date he is not appointed by the firm under SUP 4.3.1 R (as amended).

From 31 December 2004

31 December 2004

4D13

SUP 4.5.10 R

R

An actuary, who immediately before the relevant time in (a) or (b) below is the appointed actuary of a firm, must notify the FSA under SUP 4.5.10 R (as amended) if:

(a) he is not appointed by the firm under SUP 4.3.1 R (as amended) on 31 December 2004;

or

(b) he is or has been formally notified that he will not be so appointed by the firm

From 31 December 2004 13

31 December 2004 13

4E13

SUP 4.3.1 R and SUP 4.3.3 R

G

Firms and the FSAwill need to make fresh appointments once these proposed amendments come into effect, even if an actuary has already been appointed under the existing provisions. A firm will not need to seek fresh approval under section 60 of the Act for an existing appointed actuary who continues to perform theactuarial function(CF12) or the with-profits actuary function (CF12A). This is because both these controlled functionsare already covered by an actuary's existing approval to perform the previous appointed actuary function. However, under SUP TP4B firms are required to notify the FSA of any new or continued appointments to perform either or both of these functions. The effect of SUP TP4CR and SUP TP4DR is to require an existing appointed actuaryto notify the FSA under SUP 4.5.9 R and SUP 4.5.10 R if he ceases to hold any appointment at all under SUP 4.3.1 R, but not if he is appointed to perform either or both functions.

From 31 December 2004

31 December 2004

5

SUP 4.3.3 R

R

If an appointed actuary of a firm has been appointed by a previous regulator under statutory or contractual powers and remains in office immediately before commencement, that appointment will be deemed to have been made under SUP 4.3.3 R, but on the terms of the actual appointment.

From commencement

Commencement

6

SUP 8.6.1 G

R

WaiversA firm which has applied to the FSA for a waiver, or been granted a waiver by the FSA before commencement under theAct , must notify the FSA immediately after commencement if it became aware, before commencement, of any matter which is material to the relevance or appropriateness of the waiver.

Fromcommencement for one month

Commencement

6A

SUP 9.4

G

Individual guidance

From 19 July 2001

21 June 2001

(1)

If a person acts in accordance with individual written guidance:

(a)

given to him by any previous regulator (or body whose functions were assumed by a previous regulator);

(b)

relating to any pre-commencement provision; and

(c)

in the circumstances contemplated by that guidance;

then the FSA will proceed on the footing that the person has complied with the aspects of any provision in or under the Act (including a rule or guidance in the Handbook) to which the guidance relates if:

(d)

that provision is substantially similar to the pre-commencement provision in relation to the matter with which the guidance is concerned;

(e)

the guidance was current immediately before commencement; and

(f)

the guidance has not been superseded.

(2)

SUP 9.4.2 G - SUP 9.4.4 G are relevant for individual guidance in (1) in the same way as for individual written guidance given by the FSA.

(3)

References to “individual written guidance” in (1) and (2) include a written concession from a pre-commencement provision which is substantially similar to guidance in the Handbook.

8

SUP 10.13.6 R

R

Approved persons

A firm will not contravene SUP 10.13.6 R, to the extent that notice of the relevant matter was given to itsprevious regulatorbefore applications day in accordance with a statutory requirement or the rules or guidance of that regulator.

From commencement for one month

Commencement

9

SUP 12.5.5 R

SUP 12.5.7 R

R

Appointed representatives

A firm will not contravene SUP 12.5.5 R or SUP 12.5.7 R to the extent that it continues to rely on a written contract with anappointed representativeentered into before commencement which complied with a substantially similar pre-commencement provision applicable to the firm.

From commencement for 12 months

Commencement

9A

SUP 15.8.4 G

R

Notification of Delegation

From 13 February 2004 to 13 February 2007

13 February 2004

(1)

Subject to (2), SUP 15.8.4 G does not apply to a UCITS management company which became authorised before 13 February 2004.

(2)

Paragraph (1) does not apply in relation to any UK firm which exercises an EEA right under the UCITS Directive (in which event the rule applies in relation to acts of delegation occurring on or after the date on which the firm begins to exercise such rights).

9B12

SUP 12.512

R12

A firm conducting designated investment business need not amend its written contract with anappointed representative(appointed before 15 January 2004) to take account of amendments to SUP 12.5 coming into force between 30 June 2004 and 30 June 2005, until 30 June 2005 or the date on which the contract is next updated (whichever is earlier).12

From 30 June 2004 until 30 June 2005, that is, 12 months.12

Commencement, and as amended with effect from 30 June 200412

10

SUP 16.4.5 R

SUP 16.5.5 G

R

Reporting

From commencement for four months

Commencement

(1)

SUP 16.4.5 RandSUP 16.5.5 G are modified so as to require afirmto submit the first relevant report:

(a)

prepared as at itsaccounting reference date; and

(b)

within 4 months ofcommencement;

if the firm's accounting reference date falls within the 4 months before commencement .

(2)

SUP 16.4.5 RandSUP 16.5.5 G are modified so as to require afirmto submit the first relevant report:

(a)

prepared as at any date falling within 4 months after commencement; and

(b)

within 4months ofcommencement;

if:

(c)

the firm was, before commencement, required to submit reports equivalent to those required under SUP 16.4.5 R and SUP 16.4.5 R (respectively) under a substantially similar pre-commencement provision; and

(d)

firm's first accounting reference date aftercommencement falls more than eight months after the date on which it submitted its last such report under that pre-commencement provision.

10A9

SUP 16.4

SUP 16.59

R9

SUP 16.4 (Annual controllers report) and SUP 16.5 (Annual close links report) do not apply to a firm with permission to carry on only insurance mediation activity, mortgage mediation activity, or both.9

(1) in respect of mortgage mediation activities, 31 October 2004 - 31 March 2005;

(2) in respect of insurance mediation activities, 14 January 2005 - 31 March 2005,9

1 April 20059

11

SUP 16.6

SUP 16.7

SUP 16.8

R

A firm will not contravene a requirement in SUP 16.6, SUP 16.7 and SUP 16.8 to submit a report to the extent that:

From commencement for 2 years

Commencement

(1)

the date as at which the report must be prepared is before commencement; or

(2)

the period with respect to which the report must be prepared ended before commencement,

and in either case:

(3)

the firm submits an equivalent report in accordance with a substantially similar pre-commencement provision applicable to the firm; or

(4)

there was no substantially similar pre-commencement provisions applicable to the firm.

12

SUP 16.7.7 R;

SUP 16.7.9 R,

SUP 16.7.11 R,

SUP 16.7.16 R,

SUP 16.7.24 R,

SUP 16.7.26 R,

SUP 16.7.35 R,

SUP 16.7.44 R,

SUP 16.7.46 R,

SUP 16.7.48 R,

SUP 16.7.57 R

R

A firm will not contravene a rule in SUP 16.7 requiring a report to be submitted using a form which is specified in an annex to SUP 16.7, to the extent that the firm submits the report using a substantially similar form specified by its previous regulator.

From commencement for one year

Commencement

12A

SUP 16.7.38 R

R

An investment management firm which, before 1 December 2003, was already submitting consolidated financial returns in the form in:

(a) SUP 16 Ann 10R; or

(b) SUP 16 Ann 7R (with associated guidance in SUP 16 Ann 8G);

may continue to use these forms instead of the consolidated financial resources return in SUP 16 Ann 5R.

From 1 December 2003 until, but not including, the date on which the provisions of the Financial Groups Directive take effect in the United Kingdom.

1 December 2003

12B9

SUP 16.7.7 R;9

SUP 16.7.9R;9

SUP 16.7.11R;9

SUP 16.7.16R;9

SUP 16.7.20R;9

SUP 16.7.24R;9

SUP 16.7.26R;9

SUP 16.7.28R;9

SUP 16.7.35R;9

SUP 16.7.54 R;9

SUP 16.7.57R9

SUP 16.7.62R;9

SUP 16.7.65R;9

SUP 16.7.73R;9

SUP 16.7.76 R9

SUP 16.7.79 R9

SUP 16.7.80 R9

R9

(1)9

Where a rule in SUP 16.7 requires a firm to submit information using the RMAR on a half-yearly basis, and the firm has:9

From 1 April 20059

91 April 2005

9(a)

9annual income of less than £5m but more than £60,000 in total from insurance mediation activity, mortgage mediation activity and retail investment activity, and

(b)

9an accounting reference date which

(i)

9falls between 31 December 2004 and 31 March 2005; or

9(ii)

9falls between 30 June 2005 and 30 September 2005

9this must be read as a reference to providing the first return in accordance with SUP TR 12CR.

9(2)

9Where a rule in SUP 16.7 requires a firm to submit information using the RMAR on a half-yearly basis, and the firm has:

9(a)

9annual income of less than £5m but more than £60,000 in total from insurance mediation activity, mortgage mediation activity and retail investment activity, and

(b)

9an accounting reference date which is not within (1)(b);

9the first return must cover the firm's first full financial half-year which starts on or after 1 April 2005 and be submitted 30 business days after period end.

9(3)

9Where a firm is carrying on regulated activities before 1 April 2005 and is required under a rule in SUP 16.7 to submit information using the MLAR, the first return must cover the firm's first full financial quarter which starts on or after this date and be submitted 20 business days after period end.

9(4)

9Where a rule in SUP 16.7 requires a firm to submit information using the RMAR on a half-yearly basis, and the firm has:

9(a)

9annual income of less than £60,000 in total from insurance mediation activity, mortgage mediation activity and retail investment activity, and

(b)

9an accounting reference date which falls between 1 January 2005 and 31 December 2005 the relevant rule must be read as requiring the first return to be provided in accordance with SUP TR 12DR.

12C9

R 9

If SUP TR 12B R (1) - (3) applies, the firm's first return must be provided as follows:9

Accounting reference date9

Reporting period starts9

Reporting period ends9

Return to be provided9

Between 30 June 2005 and 30 September 20059

1 April 20059

Accounting reference date within 20059

30 business days after period end.9

Between 31 December 2004 and 31 March 20059

1 April 20059

6 months after accounting reference date within 20059

30 business days after period end9

12D9

R9

(1)9

If SUP TR 12BR (4)SUP TR 12BR (4) applies, the firm's first return must be provided as follows:9

Accounting reference date9

Reporting period starts9

Reporting period ends9

Return to be provided9

Between 31 December 2004 and 31 March 20059

1 April 20059

6 months after accounting reference date9 within 2005

30 business days after period end

(Note 1)9

Between 1 April 2005 and 29 June 20059

the business day following accounting reference date within 20059

6 months after6 months after the accounting reference date within 20059

30 business days after period end

(Note 1)9

Between 30 June 2005 and 29 September 20059

1 April 20059

Accounting reference date within 20059

30 business days after period end9

Between 30 September 2005 and 30 December 20059

6 months preceding accounting reference date within 20059

Accounting reference date within 2005

30 business days after period end9

12E9

R9

(2)9

If SUP TR 12BR (4) applies, the firm's second return must be provided as follows:9

Between 30 June 2005 and 29 September 20059

the business day following accounting reference date9 within 20059

6 months afteraccounting reference datewithin 20059

30 business days after period end

(Note 1)9

12F9

SUP 16.7.77 R9

R9

A mortgage administrator or mortgage lender must submit an annual report and audited accounts annually, 3 months after the firm's accounting reference date9

31 October 2004 - 31 March 20059

1 April 20059

13

SUP 16.8

R

In Forms 1R(1) to (3) in SUP 16 Annex 6R , for any life policy promoted beforecommencement, a reference to “direct offer financial promotion” must be read as a reference to “direct offer advertisement”, as defined in the rulebook of the PIA at the time the policy was promoted.

From commencement for 6 years

Commencement

14

SUP 16.8

R

SUP 16.8 does not apply to an insurer (including a friendly society) which was not a member of the PIA immediately before commencement.

From commencement for 6 years

Commencement

14A9

SUP 16.11.7 R9

R9

9Until 1 July 2006, a firm will not contravene SUP 16.11.7 R if it does not complete the data reporting field 'Advice at the point of sale' (see SUP 16 Annex 21).9

1 April 2005 - 30 June 20069

1 April 20059

14B

R

If SUP TR 12B R (5) applies, the firm's first return must be provided as follows:

15

SUP 17

R

Transaction Reporting

From commencement

Commencement

(1)

A firm: to whom SUP 17 applies under SUP 17.1.1 (1)(c); and

(2)

which was authorised under the Financial Services Act 1986 immediately before commencement otherwise than through membership of the SFA;

must comply with SUP 17 as if it were:

(1)

aninvestment management firm, if it was a member of IMRO immediately before commencement, or

(2)

a personal investment firm, otherwise.

15A

Rules in SUP 20

R

If, on or before 31 December 2002, a firm submits to the FSA a completed Form C under SUP 10.13.6 R (Ceasing to perform a controlled function) in relation to:

From 1 December 2002 to 31 December 2003

Various dates

(1)

the customer trading function relying on SUP 10.10.13 R (1)(b) (Corporate finance adviser function); or

(2)

the investment adviser function relying on SUP 10.10.20 R (1) (Investment management function) (as that rule has effect from 1 December 2002);

SUP 20 (Fees Rules) applies as if the form had been processed on receipt.

15B

Transitional rule15A

G

(1)

The purpose of the amendment to SUP 10.10.13 R (1)(b), which came into force on 1 December 2002, is to avoid the need to be approved for both the corporate finance advisory function and the customer trading function.

From 1 December 2002 to 31 December 2003

1 December 2002

(2)

The purpose of the amendment to SUP 10.10.20 R (1), which came into force on 1 December 2002, is, in part, to avoid the need to be approved for both the investment management function and the investment adviser function.

(3)

The purpose the transitional rule 15A is to enable a firm to take advantage of those rules immediately for fees purposes. However, the FSA does not anticipate completing processing the withdrawals until 31 March 2003. The FSA Register will reflect the withdrawal as at the date of the processing.

16

Paragraphs 1 to 15

R

Definitions

From commencement

Commencement

In these transitional provisions:

(1)

“pre-commencement provision” means a provision repealed or revoked by or under the Act or a rule or guidance of the firm's previous regulator, including (where the context permits) any relevant provision which it replaced before commencement; and

(2)

“substantially similar” means substantially similar in purpose and effect.

1710

SUP 20.4.4 R (4)10

R10

The periodic fee modification set out in SUP 20.4.4 R (4) does not apply to the A.2, A.18 and A.19 activity groups until 1 April 2005.10

From 31 October 2004 to 31 March 200510

1 April 200210

SUP

G

GEN contains some technical transitional provisions that apply throughout the Handbook and which are designed to ensure a smooth transition at commencement . These include transitional provisions relevant to record keeping and notification rules.

From commencement of the relevant provision in SUP

Various dates

1.

The purpose of the transitional provisions in the following table is to carry forward existing written concessions relating to pre-commencement provisions - for example, formal waivers or modifications given by IMRO, PIA or SFA (“an SRO”) and the recognised professional bodies, written concessions from the standards in the FSA's Guide to Banking Supervisory Policy, and formal written consents and determinations made by an SRO under an SRO rule.

2.

An existing written concession is only carried forward if the pre-commencement provision to which it relates is substantially similar to a rule in the Handbook. The substantially similar test should be applied to the specific element of the rule to which the written concession relates. An existing written concession from a pre-commencement provision which is substantially similar to written guidance in the Handbook is carried forward in the same way as pre-commencement individual guidance; see transitional provision 6A (Individual guidance) in the schedule of Transitional provisions applying to the Supervision manual only.

3.

An existing written concession is carried forward on a temporary basis only - for 12 months from commencement or, in the case of modifications relating to the Interim Prudential sourcebooks or SUP 16.6 (Compliance reports) or SUP 16.7 (Financial reports), until the relevant provisions cease to apply. A firm wishing to retain the benefit of a concession after that time will need to apply in good time for a waiver (see SUP 8 (Waiver and modification of rules)).

4.

An existing written concession is carried forward as an amendment to the rule to which it relates. Any such amendment has effect for all purposes (including FSA enforcement action and actions for damages under section 150 of the Act).

5.

An existing written concession is not carried forward if, and to the extent that, doing so would be inconsistent with a community obligation of the United Kingdom, in particular with the proper implementation of a directive.

6.

These transitional provisions do not apply to rules which are continued by designation of pre-commencement provisions rather than made as new rules. Written concessions of such rules are carried forward, to similar effect, as waivers (given under section 148 of the Act) by article 8 of The Financial Services and Markets Act 2000 (Transitional Provision and Savings) (Rules) Order 2001 (SI 2001/1534). The relevant rules are:

(1)

in IPRU(BANK), 3.3.15R in chapter GN; and

(2)

in IPRU(INV), those identified as designated rules in the schedule to IPRU(INV) entitled “Powers exercised”.

7.

Definitions for these transitional provisions, additional to those in the Glossary, are provided at paragraph 4 of the table.

1

Rules in: COB, IPRU,MAR 2,SUP, TC

R

(1)

A rule listed in column (2) (includingevidential provisions, transitional rules and relevant defined expressions) is disapplied, or is modified in its application, to a firm:

If the rule in column (2) appears in IPRU or in SUP 16.6 or SUP 16.7, from commencement until that rule is revoked.Otherwise, from commencement for 12 months.

Commencement

(a)

in order to produce the same effect, including any conditions, as a written concession had on a pre-commencement provision listed in paragraph 2; and

(b)

for the same period as the written concession would have lasted, if shorter than the period in column (5);

if

(c)

the rule is substantially similar to the pre-commencement provision in relation to the matter with which the written concession is concerned;

(d)

the written concession was current as respects the firm immediately before commencement;

(e)

there is no specific transitional rule relating to the written concession; and

(f)

the written concession has not been superseded by a waiver from the FSA.

(2)

Paragraph (1) does not have effect if, and to the extent that, it would be inconsistent with any community obligation of theUnited Kingdom.

2

Rules in: COB, IPRU,MAR 2,SUP, TC

R

The pre-commencement provisions referred to in paragraph 1(1) are those contained in any of the following (including relevant defined expressions):

If the rule in column (2) appears in IPRU or in SUP 16.6or SUP 16.7, from commencement until that rule is revoked.Otherwise, from commencement for 12 months.

firm

(1)

the legislative provisions of the FSA as designated agency under the Financial Services Act 1986;

(2)

the rules of IMRO, PIA, SFA and the recognised professional body;

(3)

the Insurance Companies Act 1982 and relevant secondary legislation;

(4)

the Friendly Societies Act 1992, and relevant secondary legislation;

(5)

the Banking Act 1987, relevant secondary legislation and the FSA's Guide to Banking Supervisory Policy;

(6)

the Building Societies Act 1986, relevant secondary legislation and the Building Societies Commission's Prudential Notes, Guidance Notes and DCE (Dear Chief Executive) letters.

3

Rules in: COB, IPRU,MAR 2,SUP, TC

R

Notification of relevance etc of concession

A firm which has the benefit of a written concession to which paragraph 1 applies must notify the FSA immediately if it becomes aware of any matter which is material to the relevance or appropriateness of the written concession.

If the rule in column (2) appears in IPRU or in SUP 16.6 or SUP 16.7, from commencement until that rule is revoked.Otherwise, from commencement for 12 months.

Commencement

4

Rules in: COB, IPRU,MAR 2,SUP, TC

R

Definitions

If the rule in column (2) appears in IPRU or in SUP 16.6 or SUP 16.7, from commencement until that rule is revoked.Otherwise, from commencement for 12 months.

Commencement

In these transitional provisions:

(1)

“substantially similar” means substantially similar in purpose and effect; and

(2)

“written concession” means a waiver, exemption, concession, modification, consent, approval, determination or similar exercise of discretion which:

(a)

disapplied, or tended to reduce the burden of complying with, a pre-commencement provision (with or without conditions); and

(b)

was evidenced in writing.1287654321