TC TP 1 Transitional Provisions

1

TC 2.4.1 R (1) and TC 2.4.1 R (2)TC 2.4.5 R, TC 2.7.5 R

R

(1) This transitional provision applies in respect of an employee of a firm employed at commencement if the employee had, before commencement, been assessed as competent by a firm in accordance with the applicable rules of its previous regulator.

From commencement

Commencement

(2) A firm may for the purposes of TC 2.4.1 R (1) and TC 2.4.1 R (2), TC 2.4.5 R and TC 2.7.5 R assess an employee described in (1) as competent to engage in or oversee an activity, or act as supervisor, (without the assessment required by TC 2.4.5 R (1) or TC 2.7.5 R (2) and without requiring the employee to pass an approved examination under TC 2.4.5 R (2) or TC 2.7.5 (1)), but only if the activity or role for that employee after commencement is the same or substantially the same as that in respect of which the employee had been assessed as competent before commencement.

(3) If a firm has assessed an employee as competent under (1) and (2), any other firm which subsequently employs the individual may also assess him as competent on the same basis provided that:

(a) the activity which the employee engages in or oversees (or the role of the supervisor) continues to be the same, or substantially the same, as that in respect of which the employee had been previously assessed as competent; and

(b) the individual has not experienced any significant break of employment since the previous assessment.

2

TC 2.4.1 R (1) and TC 2.4.1 R (2), TC 2.4.5 R (2)

R

(1) This transitional provision applies to a firm which at commencement employed individuals who engage in or oversee an activity but which was not, in respect of those employees, required by the rules of its previous regulator to comply with any specific training and competence requirements.

From commencement for 12 months

commencement

(2) A firm in (1) may, during the 12-month period beginning at commencement, assess an employee as competent (without requiring the individual to pass an approved examination under TC 2.4.5 R (2), but with the assessment required by TC 2.4.5 R (1)) but only in respect of the activities which the individual was able to engage in or oversee before commencement.

From commencement for 12 months

commencement

(3) If a firm has assessed an employee as competent under (1) and (2), any other firm which subsequently employs the individual may also assess that individual as competent on the same basis provided that:

(a) the activity which the employee engages in or oversees continues to be the same, or substantially the same, as that in respect of which the employee had been previously assessed as competent; and

(b) the individual has not experienced any significant break of employment since the previous assessment.

3

Paragraph 2 above

G

Firms are reminded that they should make and retain records of:

From commencement

commencement

(a) the criteria applied in assessing competence; and

(b) how and when the competence decision was arrived at.

4

TC 2.5.1 R (1) and TC 2.5.1 R (2)

R

(1) A firm which, immediately before commencement, was required to comply with specific training and competence requirements imposed by its previous regulator, may, in respect of the individuals employed before commencement, comply with the requirements of TC 2.5.1 R (1) and TC 2.5.1 R (2)by ensuring that those individuals pass the appropriate examinations within the time limits imposed by its previous regulator.4

From commencement

commencement

215

TC 2

R

(1) TC 2 does not apply to an ex-section 43 firm in respect of activities for which it would have been an exempted person under section 43 of The Financial Services Act 1986 before commencement.

From commencement for 48 months

commencement

6

[not in use]

G

General transitional provisions

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.

From commencement

commencement

TC

G

Pre-commencement written concessions

SUP contains transitional provisions which carry forward written concessions relating to pre-commencement provisions.

From commencement for 12 months6

commencement6

Rules and guidance in TC referring to "customer" or "private customer"

G

Client classification

COB contains some transitional provisions relating to the treatment of clients classified by ex-SRO firms and ex-section 43 firms before commencement.

75

TC 2.4.1 R (1) and TC 2.4.1 R (2), TC 2.4.5 R, TC 2.7.5 R5

R5

(1) This transitional provision applies in respect of an employee of a firm employed at 31 October 2004 to engage in or supervise the activities referred to at TC 2.1.4 R 1(ha), if the employee has been assessed by the firm as competent to engage in or supervise the activities specified at TC 2.1.4 R 1(f) and those activities involve selling contracts of insurance which after 30 October 2004 would be long-term care insurance contracts, and that assessment is current as at 30 October 2004.5

From 31 October 2004 to 30 October 20065

31 October 20045

(2) A firm may for the purposes of TC 2.4.1 R (1) and TC 2.4.1 R (2), TC 2.4.5 R and TC 2.7.5 R assess an employee described in (1) as competent to engage in or supervise the activities referred to at TC 2.1.4 R 1(ha), without requiring the employee to pass an appropriate examination in long-term care insurance under TC 2.4.5 R or TC 2.7.5 R (1), but only if the activity or role for that employee after 30 October 2004 is the same or substantially the same as that in respect of which the employee had been assessed as competent at 30 October 2004.5

(3) If a firm has assessed an employee as competent under (1) and (2), any other firm which subsequently employs the individual may also assess him as competent on the same basis provided that:5

(a) the activity which the employee engages in or supervises continues to be the same, or substantially the same, as that in respect of which the employee had been previously assessed as competent; and5

(b) the individual has not experienced any significant break of relevant employment as described in (a) since the previous assessment.5

85

Paragraph 7 above5

G5

Until 30 October 2006, a firm may rely on paragraph 7 to assess as competent an employee who advises on or supervises those advising on long-term care insurance contracts, if that employee had been assessed by the firm as competent at 30 October 2004 to advise or supervise those advising on investments which would be, after 30 October 2004, long-term care insurance contracts, and the activity or role of that employee after 30 October 2004 remains the same or substantially the same as it was prior to that date.5

After 30 October 2006 a firm may not rely on paragraph 7 to assess an employee as competent: the employee must be assessed as competent and must have passed an appropriate examination on long-term care insurance if they are to advise on or supervise advising on long-term care insurance contracts.5

From 31 October 2004 to 30 October 20065

31 October 20045

95

Paragraph 7 above5

G5

A firm which relies on paragraph 7 of this table in establishing the competence of an individual advising on or supervising those advising on long-term care insurance contracts should have regard to TC 2.6. In particular, a firm should keep under review the status of an employee deemed competent under paragraph 7 and consider whether an employee may no longer be competent to advise or supervise advising on long-term care insurance contracts (for example in the light of repeated failures to pass an appropriate exam).5

From 31 October 2004 to 30 October 20065

31 October 20045

1.

TC 2

Competent employees (mortgages including lifetime mortgages)

(1) This transitional provision applies:

(a) in relation to regulated mortgage contracts including regulated lifetime mortgage contracts; and

(b) in respect of an individual employed by a firm at 31 October 2004, if that individual had before that date been assessed as competent by the firm in accordance with the rules of the Mortgage Code Compliance Board applying immediately before 31 October 2004.

(2) The firm in 1(b) will not contravene any of the provisions in TC 2.4.5 R provided that:

(a) the activity which the individual engages in or oversees continues to be the same, or substantially the same as that immediately before 31 October 2004; and

(b) the individual has not experienced any significant break of employment since the previous assessment.

(3) Any other firm which subsequently employs the individual in 1(b) will not contravene TC 2.4.5 R (2) provided that:

(a) the conditions in 2(a) and (b) are met; and

(b) the firm assesses the individual to be competent in accordance with TC 2.4.5 R (1).

From 31 October 2004

Apply in relation to regulated mortgage contracts from 31 October 2004