Related provisions for GENPRU 1.3.12
1 - 20 of 157 items.
Where the subject matter of a complaint is subject to a review directly or indirectly under the terms of the policy statement for the review of specific categories of FSAVC business issued by the FSA on 28 February 2000, the complaints resolution rules, the complaints time limit rules, the complaints record rule and the complaints reporting rules will apply only if the complaint is about the outcome of the review.
(1) A firm falling within the Compulsory Jurisdiction which does not conduct business with eligible complainants and has no reasonable likelihood of doing so, can, by written notification to the
FSA
, claim exemption from the rules relating to the funding of the Financial Ombudsman Service, and from the remainder of this chapter.(2) Notwithstanding (1), the complaints handling rules and complaints record rule will continue to apply in respect of complaints concerning MiFID business.(3)
(1) A firm need not treat this chapter as applying in respect of a delivery versus payment transaction through a commercial settlement system if it is intended that the
financial instrument
is either to be: (a) in respect of a client's purchase, due to the client within one business day following the client's fulfilment of a payment obligation; or(b) in respect of a client's sale, due to the firm within one business day following the fulfilment of a payment obligation;unless
When a firm temporarily handles a financial instrument, in order to comply with its obligation to act in accordance with Principle 10 (Clients' assets), the following are guides to good practice:(1) a firm should keep the
financial instrument
secure, record it as belonging to that client, and forward it to the client or in accordance with the client's instructions as soon as practicable after receiving it; and(2) a firm should make and retain a record of the fact that the firm
A firm must introduce adequate organisational arrangements to minimise the risk of the loss or diminution of clients'financial instruments, or the rights in connection with thosefinancial instruments, as a result of the misuse of the financial instruments, fraud, poor administration, inadequate record-keeping or negligence.[Note: article 16(1)(f) of the MiFID implementing Directive]
To the extent practicable, a firm must effect appropriate registration or recording of legal title to a
financial instrument
in the name of:(1) the client (or, where appropriate, the trustee firm), unless the client is an authorised person acting on behalf of its client, in which case it may be registered in the name of the client of that authorised person;(2) a nominee company which is controlled by:(a) the firm;(b) an affiliated company;(c) a recognised investment exchange
A firm may register or record legal title to its own
financial instrument
in the same name as that in which legal title to a
financial instrument
is registered or recorded, but only if:(1) the firm'sfinancial instruments
are separately identified in the firm's records from the financial instruments; or(2) the firm registers or records a
financial instrument
in accordance with CASS 6.2.3R (4).
(1) A firm will be able to comply with SYSC
2.2.1 R by means of records which it keeps for its own purposes provided
these records satisfy the requirements of SYSC
2.2.1 R and provided the firm takes reasonable care to keep them up
to date. Appropriate records might, for this purpose, include organisational
charts and diagrams, project management documents,
job descriptions, committee constitutions and terms of reference provided
they show a clear description of the firm's major
functions.(2)
(1) A firm may arrange for records to be kept in such form as it chooses, provided the record is readily accessible for inspection by the FSA.(2) Where a firm chooses to maintain records in electronic form, it should take reasonable steps to ensure that:(a) the electronic record accurately reflects the original information; and (b) the electronic record has not been subject to unauthorised or accidental alteration.
1This sourcebook does not specify detailed record keeping requirements for a firm that carries on a home purchase activity or that communicates or approves a financial promotion of a home purchase plan (but note the high-level record-keeping provisions in the Senior Management Arrangements, Systems and Controls sourcebook).
A firm must arrange for orderly records to
be kept of its business and internal organisation, including all services
and transactions undertaken by it, which must be sufficient to enable the FSA or any other
relevant competent authority under MiFID to monitor the firm's compliance
with the requirements under the regulatory
system, and in particular to ascertain that the firm has complied with all obligations with
respect to clients.[Note:
article 13(6) of MiFID and article 5(1)(f)
Subject
to any other record-keeping rule in
the Handbook, the records required
under the Handbook should be
capable of being reproduced in the English language on paper. Where a firm is required to retain a record of a
communication that was not made in the English language, it may retain it
in that language. However, it should be able to provide a translation on request.
If a firm's records relate to
business carried on from an establishment in a country or territory outside
the
In
relation to the retention of records for non-MiFID
business, a firm should
have appropriate systems and controls in place with respect to the adequacy
of, access to, and the security of its records so that the firm may
fulfil its regulatory and statutory obligations. With respect to retention
periods, the general principle is that records should be retained for as long
as is relevant for the purposes for which they are made.1
(1) This section deals with matters relating to the register of unitholders of units in an AUT including its establishment and contents. The manager or trustee may be responsible for the register. In any event, the person responsible for the register must be stated in the trust deed and this section details what his duties are. The provisions relating to documentsevidencingtitle to units, including the issue of bearer certificates are dependent on the provisions in the trust deed
(1) Either the manager or the trustee (as nominated in the trust deed) must establish and maintain a register of unitholders as a document in accordance with this section.(2) The manager or trustee in accordance with their duties under (1) must exercise all due diligence and take all reasonable steps to ensure the information contained on the register is at all times complete and up to date.(3) The register must contain:(a) the name and address of each unitholder (for joint unitholders,
(1) If no person is entered in the register as the unitholder of a unit, the manager must be treated as the unitholder of each such unit which is in issue (other than a unit which is represented by a bearer certificate).(2) Where units are transferred to the manager, they need not be cancelled and the manager need not be entered on the register as the new unitholder.
(1) Every unitholder is entitled to transfer units held on the register by an instrument of transfer in any form that the person responsible for the register may approve, but that person is under no duty to accept a transfer unless:(a) it is permitted by the trust deed or prospectus; and(b) the transfer is excluded by Schedule 19 of the Finance Act 1999 from a charge to stamp duty reserve tax, or there has been paid to the trustee, for the account of the AUT, an amount agreed
(1) Following the sale of units or as a result of COLL 6.4.6 R (Transfer of units by act of parties) a document recording title to those units may be issued in such a form as the trust deed permits.(2) The person responsible for the register must issue any document in (1) or provide relevant information in a timely manner where the procedures for redeeming units require the unitholder to surrender that document.(3) Bearer certificates may only be issued if they are permitted by
(1) The ACD and any other directors of an ICVC or the person responsible for the register of an AUT may arrange for a plan register to be established and maintained.(2) Where payments are made out of scheme property to establish and maintain a plan register, plan investors must be treated as unitholders for the purposes of COLL 4.3 to COLL 4.5 and COLL 6.4.4 R (Register: general requirements and contents).
5A firm should ensure that the systems and controls include:(1) appropriate training for its employees in relation to money laundering;(2) appropriate provision of information to its governing body and senior management, including a report at least annually by that firm'smoney laundering reporting officer (MLRO) on the operation and effectiveness of those systems and controls;(3) appropriate documentation of its risk management policies and risk profile in relation to money laundering,
(1) Depending on the nature, scale and complexity of its business, it may be appropriate for a firm to have a separate compliance function. The organisation and responsibilities of a compliance function should be documented. A compliance function should be staffed by an appropriate number of competent staff who are sufficiently independent to perform their duties objectively. It should be adequately resourced and should have unrestricted access to the firm's relevant records as
(1) Depending on the nature, scale and complexity of its business, it may be appropriate for a firm to have a separate risk assessment function responsible for assessing the risks that the firm faces and advising the governing body and senior managers on them.(2) The organisation and responsibilities of a risk assessment function should be documented. The function should be adequately resourced and staffed by an appropriate number of competent staff who are sufficiently independent
A firm should plan its business appropriately so that it is able to identify, measure, manage and control risks of regulatory concern (see SYSC 3.2.11 G (2)). In some firms, depending on the nature, scale and complexity of their business, it may be appropriate to have business plans or strategy plans documented and updated on a regular basis to take account of changes in the business environment.
(1) A firm must take reasonable care to make and retain adequate records of matters and dealings (including accounting records) which are the subject of requirements and standards under the regulatory system.(2) Subject to (3) and to any other record-keeping rule in the Handbook, the records required by (1) or by such other rule must be capable of being reproduced in the English language on paper.(3) If a firm's records relate to business carried on from an establishment in a
A firm should have appropriate systems and controls in place to fulfil the firm's regulatory and statutory obligations with respect to adequacy, access, periods of retention and security of records. The general principle is that records should be retained for as long as is relevant for the purposes for which they are made.
Schedule to the Recognition Requirements Regulations, paragraph 3
2(1) |
The [UK RIE] must ensure that the systems and controls used in the performance of its [relevant functions] are adequate, and appropriate for the scale and nature of its business. |
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(2) |
Sub-paragraph (1) applies in particular to systems and controls concerning - |
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(a) |
the transmission of information; |
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(b) |
the assessment, mitigation and management of risks to the performance of the [UK RIE'srelevant functions]; |
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(c) |
the effecting and monitoring of transactions on the [UK RIE]; |
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(ca) |
the technical operation of the [UK RIE], including contingency arrangements for disruption to its facilities; |
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(d) |
the operation of the arrangements mentioned in paragraph 4(2)(d); and |
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(e) |
(where relevant) the safeguarding and administration of assets belonging to users of the [UK RIE's] facilities. |
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In assessing a UK recognised body's systems and controls for the safeguarding and administration of assets belonging to users of its facilities, the FSA may have regard to the totality of the arrangements and processes by which the UK recognised body: (1) records the assets held and the identity of the owners of (and other persons with relevant rights over) those assets; (2) records any instructions given in relation to those assets;(3) records the carrying out of those instructions;(4)
Information technology is likely to be a major component of the systems and controls used by any UK recognised body. In assessing the adequacy of the information technology used by a UK recognised body to perform or support its relevant functions, the FSA may have regard to:(1) the organisation, management and resources of the information technology department within the UK recognised body;(2) the arrangements for controlling and documenting the design, development, implementation
The FSA may also have regard to the arrangements for maintaining, recording and enforcing technical and operational standards and specifications for information technology systems, including:(1) the procedures for the evaluation and selection of information technology systems;(2) the arrangements for testing information technology systems before live operations;(3) the procedures for problem management and system change;(4) the arrangements to monitor and report system performance,
A firm must make the following records on each of its appointed representatives:(1) the appointed representative's name;(2) a copy of the original contract with the appointed representative and any subsequent amendments to it (including details of any restrictions placed on the activities which the appointed representative may carry on);1(3) the date and reason for terminating or amending its contract with the appointed representative, whenever such termination or amendment gives
The firm should also satisfy itself that:(1) the appointed representative is making and retaining records in accordance with the relevant record keeping rules in the Handbook, if these records are not maintained by the firm;(2) the appointed representative (other than an introducer appointed representative) is making and retaining records sufficient to disclose with reasonable accuracy the financial position of the business it carries on in its capacity as the firm's appointed
Firms are reminded that they should make and retain records in relation to any person who falls within the scope of the rules in TC or who performs a controlled function under an arrangement entered into by a firm or by an appointed representative. See SUP 10 and TC for the applicable record keeping rules.
For its MiFID business, a firm is required to keep orderly records of its business and internal organisation (see SYSC 9, General rules on record-keeping). For other business, a firm is required to take reasonable care to establish and maintain such systems and controls as are appropriate to itsbusiness (see SYSC 3, Systems and controls). The records may be expected to reflect the different effect of the rules in this chapter depending on whether the client is a retail client
A1firm must retain its records relating to suitability for a minimum of the following periods:(1) if relating to a pension transfer, pension opt-out or FSAVC, indefinitely;(2) if relating to a life policy,2personal pension scheme2or stakeholder pension scheme, five years;(3) if relating to MiFID or equivalent third country business, five years; and(4) in any other case, three years.
A sponsor will generally be regarded as having adequate systems and controls if there are:(1) clear and effective reporting lines;(2) effective systems and controls for the adequate supervision of employees performing any of the services set out in LR 8.2, LR 8.3 and LR 8.4;(3) effective systems and controls to ensure its compliance with all applicable listing rules when performing any of the services set out in LR 8.2, LR 8.3 or LR 8.4;(4) effective systems and controls for
In discharging its obligations under this section, a firm should also consider, together with any other relevant matters:(1) once a
financial instrument
has been lodged by the firm with the third party, the third party's performance of its services to the firm;(2) the arrangements that the third party has in place for holding and safeguarding the financial instrument;(3) current industry standard reports, for example Financial Reporting and Auditing Group (FRAG) 21 report or
(1) CASS
5.8 applies to a firm (including
in its capacity as trustee under CASS
5.4) which in the course of insurance mediation activity takes into its
possession for safekeeping any client title documents (other than documents of
no value) or other tangible assets belonging to clients.(2) CASS
5.8 does not apply to a firm when: (a) carrying
on an insurance mediation activity which
is in respect of a reinsurance contract;
or(b) acting
in accordance with CASS 2 (Custody
rules)
The rules in
this section amplify the obligation in Principle 10
which requires a firm to arrange
adequate protection for client's assets. Firms carrying on insurance
mediation activities may hold, on a temporary or longer basis, client title documents such
as policy documents (other
than policy documents of no
value) and also items of physical property if, for example, a firm arranges for a valuation. The rules are intended to ensure that firms make adequate arrangements for
(1) A firm which has in its possession or control documents evidencing a client's title
to a contract of insurance or
other similar documents (other
than documents of no value) or which takes into its possession or control
tangible assets belonging to a client,
must take reasonable steps to ensure that any such documents or
items of property:(a) are
kept safe until they are delivered to the client;(b) are
not delivered or given to any other person except
in accordance with instructions
An investment firm shall, in relation to every order received from a client, and in relation to every decision to deal taken in providing the service of portfolio management, immediately make a record of the following details, to the extent they are applicable to the order or decision to deal in question:(1) the name or other designation of the client;(2) the name or other designation of any relevant person acting on behalf of the client;(3) the details specified in point 4, 6,
Immediately after executing a client order, or, in the case of investment firms that transmit orders to another person for execution, immediately after receiving confirmation that an order has been executed, investment firms shall record the following details of the transaction in question:(1) the name or other designation of the client;(2) the details specified in points 2, 3, 4, 6, and in points 16 to 21, of Table 1 of Annex I;(3) the total price, being the product of the unit
If an investment firm transmits an order to another person for execution, the investment firm shall immediately record the following details after making the transmission:(1) the name or other designation of the client whose order has been transmitted;(2) the name or other designation of the person to whom the order was transmitted;(3) the terms of the order transmitted;(4) the date and exact time of transmission. [Note: article 8(2) of MiFID Regulation]
Points 2, 3, 4, 6, 16 - 21 of Table 1 of Annex 1 of the MiFID Regulation
2. |
Trading day |
The trading day on which the transaction was executed. |
3. |
Trading time |
The time at which the transaction was executed, reported in the local time of the competent authority to which the transaction will be reported, and the basis in which the transaction is reported expressed as Co-ordinated Universal Time (UTC) +/- hours. |
4. |
Buy/sell indicator |
Identifies whether the transaction was a buy or sell from the perspective of the reporting investment firm or, in the case of a report to a client, of the client. |
6. |
Instrument identification |
This shall consist of:
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16. |
Unit price |
The price per security or derivative contract excluding commission and (where relevant) accrued interest. In the case of a debt instrument, the price may be expressed either in terms of currency or as a percentage. |
17. |
Price notation |
The currency in which the price is expressed. If, in the case of a bond or other form of securitised debt, the price is expressed as a percentage, that percentage shall be included. |
18. |
Quantity |
The number of units of the financial instruments, the nominal value of bonds, or the number of derivative contracts included in the transaction. |
19. |
Quantity notation |
An indication as to whether the quantity is the number of units of financial instruments, the nominal value of bonds or the number of derivative contracts. |
20. |
Counterparty |
Identification of the counterparty to the transaction. That identification shall consist of:
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21. |
Venue identification |
Identification of the venue where the transaction was executed. That identification shall consist in:
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In meeting a request under MCOB 5.5.1 R (2)(c), the firm must not delay the provision of the illustration by requesting information other than:(1) the information necessary to personalise the illustration in accordance with MCOB 5.6.6 R, if the firm does not already know it;(2) where the firm acts in accordance with MCOB 5.5.11 R(2), such information as is necessary to ascertain whether or not the contract will be a regulated mortgage contract;(3) where the regulated mortgage
Where MCOB 5.5.15 R(4) applies:(1) a firm must ask the customer relevant questions about his credit history or obtain information on his credit record from a credit reference agency;(2) a credit reference agency must not be used unless:(a) it would be quicker than asking the customer the relevant questions about his credit history; or(b) the customer is not able to provide sufficient information on his credit history.
A firm may use information that it already holds on the customer for the purpose of producing the illustration (for example, if it already holds the customer's credit record), providing the use of this information does not delay the customer receiving the illustration and the customer's consent is obtained where appropriate.
A primary
pooling event occurs:(1) on
the failure of the firm; or(2) on
the vesting of assets in a trustee in accordance with an 'assets requirement' imposed under section 48(1)(b)of the Act; or(3) on
the coming into force of a requirement for
all client money held by the firm; or(4) when
the firm notifies, or is in
breach of its duty to notify, the FSA, in accordance with CASS 5.5.77 R1, that it is unable correctly to
identify and allocate in its records all valid claims arising
Money held
in each general client bank account of
the firm must be treated as
pooled and:(1) any shortfall in client
money held, or which should have been held, in general client bank accounts, that has arisen
as a result of the failure of
the bank, must be borne by all the clients whose client money is held in a general
client bank account of the firm,
rateably in accordance with their entitlements;(2) a
new client money entitlement
must be calculated for each client by
the firm,
For each client with
a designated client bank account held
at the failed bank:(1) any shortfall in client
money held, or which should have been held, in designated client bank accounts that has
arisen as a result of the failure,
must be borne by all the clients whose client money is held in a designated
client bank account of the firm at
the failed bank, rateably in
accordance with their entitlements;(2) a
new client money entitlement
must be calculated for each of the relevant
Money held
in each general client bank account of
the firm must be treated as
pooled and:(1) any shortfall in client
money held, or which should have been held, in general client bank accounts, that has arisen
as a result of the failure,
must be borne by all the clients whose client money is held in a general
client bank account of the firm,
rateably in accordance with their entitlements;(2) a
new client money entitlement
must be calculated for each client by
the firm, to reflect
(1) A firm must make an adequate record of any financial promotion it communicates or approves, other than a financial promotion made in the course of a personal visit, telephone conversation or other interactive dialogue.(2) For a telemarketing campaign, a firm must make an adequate record of copies of any scripts used.(3) A firm must retain the record in relation to a financial promotion relating to:(a) a pension transfer, pension opt-out or FSAVC, indefinitely;(b) a life policy,