Related provisions for APER 4.4.3
1 - 15 of 15 items.
12This Code of Practice for Approved Persons is
issued under section 64 of the Act (Conduct:
statements and codes) for the purpose of helping to determine whether or not
an approved person's conduct
complies with a Statement of Principle.
The code sets out descriptions of conduct which, in the FCA's opinion,
do not comply with the relevant Statements
of Principle. The code also sets out certain factors which,
in the opinion of the FCA,
are to be taken into account in determining
The
significance of conduct identified in the Code
of Practice for Approved Persons as tending to establish compliance
with or a breach of a Statement of Principle will
be assessed only after all the circumstances of a particular case have been
considered. Account will be taken of the context in which a course of conduct
was undertaken, including the precise circumstances of the individual case,
the characteristics of the particular accountable
function12 and the behaviour to
The Code of Practice for Approved Persons (and
in particular the specific examples of behaviour which may be in breach of
a generic description of conduct in the code) is not exhaustive of the kind
of conduct that may contravene the Statements
of Principle. The purpose of the code is to help determine whether
or not a person's conduct complies
with a Statement of Principle.
The code may be supplemented from time to time. The appropriate
regulator12 will amend the code if there
12In
applying Statements of Principle 5
to 7, the nature, scale and complexity of the business under management and
the role and responsibility of the individual performing an accountable higher management function within the firm will
be relevant in assessing whether an approved
person's conduct was reasonable. For example, the smaller and
less complex the business, the less detailed and extensive the systems of
control need to be. The FCA will
be of the opinion that an individual
3For
the purpose of this Statement of Principle,
regulators in addition to the FCA and
the PRA are those which have
recognised jurisdiction in relation to regulated
activities and a power to call for information from the approved person in connection with his accountable function or (in the case of
an individual performing an accountable significant-influence
function) in connection with the business for which he is responsible.
This may include an exchange or an overseas
r
In
determining whether or not an approved person's conduct
under APER 4.4.4 E complies with Statement of Principle 4,
the following are factors which, in the opinion of the appropriate
regulator,3 are to be taken into account:3(1) the
likely significance to the regulator concerned (as defined in APER 4.4.4 E)3 of the information which it was
reasonable for the individual to assume;3(2) whether
the information related to the individual himself or to his firm;(3) whether
any decision
In
determining whether or not an approved person's conduct
under APER 4.4.7 E complies with Statement of Principle 4,3 the following are factors which, in
the opinion of the appropriate
regulator,3 are to be taken into account:3(1) the
likely significance of the information to the regulator concerned (as defined
in APER 4.4.4 E)3 which it was reasonable for the approved person to assume;(2) whether
any decision not to inform the regulator concerned (as defined in APER 4.4.4 E)3
Article 169(3) of the EU CRR allows the use of direct estimates of PDs, although such a measure could be assessed over a variety of different time horizons which the EU CRR does not specify. Accordingly, the FCA considers that it acceptable in principle to use methodologies of this type in lieu of estimation of long-run averages for the grade/pool/score of the underlying rating system, where the following conditions are met. Meeting these conditions requires a firm using the
In
determining whether or not the conduct of an approved
person performing a significant
influence function under APER 4.6.5 E, APER 4.6.6 E and APER 4.6.8 E complies with Statement
of Principle 6,4 the following are factors which, in
the opinion of the appropriate
regulator,4 are to be taken into account:4(1) the
competence, knowledge or seniority of the delegate; and (2) the
past performance and record of the delegate.
(1) An approved person performing a significant influence function may delegate
the investigation, resolution or management of an issue or authority for dealing
with a part of the business to individuals who report to him or to others.(2) The approved person performing a significant influence function should have
reasonable grounds for believing that the delegate has the competence, knowledge,
skill and time to deal with the issue. For instance, if the compliance department
only
The FCA4 will not discipline approved persons on the basis of vicarious liability (that is, holding them responsible for the acts of others), provided appropriate delegation and supervision has taken place (see APER 4.6.13 G and APER 4.6.14 G). In particular, disciplinary action will not be taken against an approved person performing a significant influence function simply because a regulatory failure has occurred in an area of business for which he is responsible. The FCA4 will
7APER 2.1A.3 P sets out the Statements of Principle issued
by the FCA to which APER
1.2.1A G refers
and to which the provisions of the Code of
Practice for Approved Persons and guidance in APER 3 and APER 4 apply.
The paragraphs of APER 1.1A labelled "P" also form part of the Statements
of Principle.7
Statements of Principle issued under section 64 of the Act
Statement of Principle 1 An approved person must act with integrity in carrying out his accountable functions. |
Statement of Principle 2 An approved person must act with due skill, care and diligence in carrying out his accountable functions. |
Statement of Principle 3 An approved person must observe proper standards of market conduct in carrying out his accountable functions. |
Statement of Principle 4 An approved person must deal with the FCA, the PRA and other regulators in an open and cooperative way and must disclose appropriately any information of which the FCA or the PRA would reasonably expect notice. |
Statement of Principle 5 An approved person performing an accountable significant-influence function must take reasonable steps to ensure that the business of the for which he is responsible in his accountable function is organised so that it can be controlled effectively. |
Statement of Principle 6 An approved person performing an accountable significant-influence function must exercise due skill, care and diligence in managing the business of the for which he is responsible in his accountable function. |
Statement of Principle 7 An approved person performing an accountable significant-influence function must take reasonable steps to ensure that the business of the for which he is responsible in his accountable function complies with the relevant requirements and standards of the regulatory system. |
2When it decides whether to make a prohibition order against an approved person and/or withdraw its approval, the FCA will consider all the relevant circumstances of the case. These may include, but are not limited to those set out below. (1) The matters set out in section 61(2) of the Act.
(2) Whether the individual is fit and proper to perform functions in relation to regulated activities. The criteria for assessing the fitness and propriety of approved persons
2The following are examples of types of behaviour which have previously resulted in FCA the deciding to issue a prohibition order or withdraw the approval of an approved person:(1) Providing false or misleading information to the FCA; including information relating to identity, ability to work in the United Kingdom, and business arrangements;
(2)
Failure to disclose material considerations on application forms, such as details of County
2Firms and approved persons have an obligation to be open and co-operative with the FCA (as a result of Principle 11 for Businesses and Statement of Principle 4 for Approved Persons respectively). The FCA will make it clear to the person concerned whether it requires them to produce information or answer questions under the Act or whether the provision of answers is purely voluntary. The fact that the person concerned may be a regulated person does not affect this.
The Code of Practice for Approved Persons sets out descriptions of conduct which, in the opinion of the FCA3, do not comply with a Statement of Principle and, in the case of Statement of Principle 3, conduct which tends to show compliance within that statement. The Code of Practice for Approved Persons also sets out, in certain cases, factors which, in the opinion of the FCA3, are to be taken into account in determining whether or not an approved person's conduct complies with