1Introduction |
1. |
An accredited
body is a body appearing in the list of such bodies
in the Glossary.1 1 |
2. |
Information on accredited
bodies, including guidance on
the process for including an applicant body in the list, is set out below
and the obligation to pay the application fee is set out in FEES 3.2. |
3. |
[deleted]1 1 |
Process for
including a body in the list of accredited bodies |
4. |
In considering the compatibility
of a proposed addition with the statutory objectives,
the FCA will determine whether the applicant
will, if accredited, contribute to securing an appropriate degree of protection
for consumers having regard
in particular to: |
|
(1) |
the matters set out in paragraphs 10 to 20; and |
|
(2) |
the rules and practices of the applicant. |
5. |
An application to the FCA to be added to the list of accredited bodies should set out how the
applicant will satisfy the criteria in paragraphs 10 to 20. The application
should be accompanied by a report from a suitable auditor which sets out its
independent assessment of the applicant's ability to meet these criteria.
An application form is available from the FCA upon request. |
6. |
When considering an application
for accredited body status
the FCA may: |
|
(1) |
carry out any enquiries and request any further information that
it considers appropriate, including consulting other regulators; |
|
(2) |
ask the applicant or its specified representative to answer questions
and explain any matter the FCA considers relevant to the application; |
|
(3) |
take into account any information which the FCA considers appropriate to the application;
and |
|
(4) |
request that any information provided by the applicant or its
specified representative is verified in such a manner as the FCA may specify. |
7. |
The FCA will confirm its decision in writing
to the applicant. |
8. |
The FCA will enter into an agreement with
the applicant or accredited body which
will specify the requirements that the accredited
body must meet. These will include the matters set out in paragraphs
10 to 20. Approval as an accredited body becomes
effective only when the name of the applicant is added to the Glossary definition of accredited
body. |
9. |
Paragraphs 10 to 20 set out the
criteria which an applicant should meet to become an accredited
body and which an accredited
body should meet at all times. |
Acting in
the public interest and furthering the development of the profession |
10. |
The FCA will expect an accredited
body to act in the public interest, to contribute to raising
consumer confidence and professional standards in the retail investment advice
market and to promoting the profession. |
Carrying
out effective verification services |
11. |
If independent verification of
a retail investment adviser's professional
standards has been carried out by an accredited
body, the FCA will expect the accredited
body to provide the retail
investment adviser with evidence of that verification in a durable medium and in a form agreed by the FCA. This is referred to in this Appendix
and TC 2.1.28 R as
a 'statement of professional standing'. |
12. |
The FCA will expect an accredited
body to have in place effective procedures for carrying out
its verification activities. These should include: |
|
(1) |
verifying that each retail investment
adviser who is a member of or subscriber to the accredited body's verification service has
made an annual declaration in writing that the retail
investment adviser has, in the preceding 12 months,
complied with APER and completed
the continuing professional development required under TC 2.1.15 R;1 |
|
(2) |
verifying annually the continuing professional development records
of no less than 10% of the retail investment
advisers who have used its service in the previous 12 months to ensure that the records are accurate
and the continuing professional development completed by the retail investment advisers is appropriate;
and |
|
(3) |
verifying that, if required by TC,
the retail investment advisers who
use its services have attained an appropriate qualification. This should include,
where relevant, checking that appropriate qualification gap-fill records have
been completed by the retail investment advisers. |
13. |
The FCA will not expect an accredited body to carry out the verification
in paragraph 12(3) if a retail investment
adviser provides the accredited
body with evidence in a durable
medium which demonstrates that another accredited
body has previously verified the retail
investment adviser's appropriate qualification, including, where
relevant, appropriate qualification gap-fill. |
14. |
The FCA will expect an accredited
body to make it a contractual condition of membership (where
a retail investment adviser is
a member of the accredited body)
or of using its verification service (where a retail
investment adviser is not a member of the accredited
body) that, as a minimum, the accredited
body will not continue to verify a retail
investment adviser's standards and will withdraw its statement
of professional standing if the accredited
body is provided with false information in relation to a retail investment adviser's qualifications
or continuing professional development or a false declaration in relation
to a retail investment adviser's compliance
with APER. In this regard, an accredited body must have in place appropriate
decision-making procedures with a suitable degree of independence and transparency. |
Having appropriate systems and controls
in place and providing evidence to the FCA of continuing effectiveness |
15. |
The FCA will expect an accredited
body to ensure that it has adequate resources and systems and
controls in place in relation to its role as an accredited
body. |
16. |
The FCA will expect an accredited
body to have effective procedures in place for the management
of conflicts of interest and have a well-balanced governance structure with
at least one member who is independent of the sector. |
17. |
The FCA will expect an accredited
body to have a code of ethics and to ensure that its code of
ethics and verification service terms and conditions do not contain any provisions
that conflict with APER. |
Ongoing cooperation with the FCA |
18. |
The FCA will expect an accredited
body to provide the FCA with such documents and information
as the FCA reasonably requires, and to cooperate
with the FCA in an open and transparent manner. |
19. |
The FCA will expect an accredited
body to share information with the FCA (subject to any legal constraints)
in relation to the professional standards of the retail
investment advisers who use its service as appropriate. Examples
might include conduct issues, complaints, dishonestly obtaining or falsifying
qualifications or continuing professional development or a failure to complete
appropriate continuing professional development. The FCA will expect an accredited
body to notify the firm if
issues such as these arise. |
20. |
The FCA will expect an accredited
body to submit to the FCA an annual report by a suitable
independent auditor which sets out that auditor's assessment of the
quality of the body's satisfaction of the criteria in paragraphs 10
to 19 in the preceding 12 months and
whether, in the auditor's view, the body is capable of satisfying the
criteria in the subsequent 12 months.
The FCA will expect this annual report to be
submitted to the FCA within three months of
the anniversary of the date on which the accredited
body was added to the Glossary definition
of accredited body. |
Withdrawal
of accreditation |
21. |
If an accredited
body fails or, in the FCA's view, is likely to fail to satisfy
the criteria, the FCA will discuss this with the accredited body concerned. If, following
a period of discussion, the accredited body has
failed to take appropriate corrective action to ensure that it satisfies and
will continue to satisfy the criteria, the FCA will withdraw the accredited body's accreditation by removing
its name from the list of accredited bodies published
in the Glossary. The FCA will expect the body to notify each retail investment adviser holding a current
statement of professional standing of the FCA's decision. A statement of professional
standing issued by the accredited body before
the withdrawal of accreditation will continue to be valid until its expiration. |
