Related provisions for GEN 2.2.16

GEN 2.2.6G01/07/2012

Expressions with defined meanings appear in italics in the Handbook, unless otherwise stated in individual sourcebooks or manuals11.

GEN 2.2.7R31/12/2004

In the Handbook (except IPRU, unless otherwise indicated2):(1) an expression in italics which is defined in the Glossary has the meaning given there; and(2) an expression in italics which relates to an expression defined in the Glossary must be interpreted accordingly.

GEN 2.2.8G01/03/2016

Examples of related expressions are:(1) "advice on investments" and "advise on investments", which should be interpreted by reference to "advising on investments";(2) "closely linked", which should be interpreted by reference to "close links";(3) "controls" and "controlled", which should be interpreted by reference to "control";19(4) "effect", as for example in "effect a life policy", which should be interpreted by reference to "effecting contracts of insurance"; and19(5) “employment”,

GEN 2.2.10G21/06/2001

The Interim Prudential sourcebooks (IPRU) have individual arrangements for defined terms and each contains rules or guidance on its own arrangements. In respect of those sourcebooks, reliance should not be placed on the definitions which appear in the Glossary unless otherwise indicated.

GEN 2.2.20G01/01/2006

In the Glossary, the definition of designated investment exchange lists certain investment exchanges. Further information on designated investment exchanges, including guidance on the addition of an investment exchange to the list, is set out in GEN 2 Annex 1 G and the obligation to pay the application fee is set out in 53FEES 3.25.

GEN 2.2.25G04/12/2015

36Examples of rules being interpreted as cut back by GEN 2.2.23 R include the following:(1) [deleted]1212(2) SYSC 6.1.1 R requires a firm to maintain adequate policies and procedures to ensure compliance with its obligations under the regulatory system; SYSC 6.1.1 R should be interpreted:(a) as applied by the FCA in respect of a PRA-authorised person's compliance with regulatory obligations that are the responsibility of the FCA (for example, in respect of a bank maintaining policies

SUP 10A.17.2G01/04/2013

If the firm or its advisers have further questions, they should contact the FCA's Contact Centre (see SUP 10A.12.6 G).

SUP 10A.3.5G01/04/2013

The arrangement must be “in relation to” the carrying on of a regulated activity. Regulated activities are defined in the Glossary by reference to the Regulated Activities Order. This order prescribes the activities which are regulated activities for the purposes of the Act.

COCON 1.2.1G07/03/2016

COCON refers in a number of places to ‘investments’. The Glossary meaning of investment is wide and is not just limited to the ordinary dictionary meaning.

FEES 5.9.3G01/07/2011

[deleted]3838

SYSC 4.6.9R07/03/2016

(1)
A management responsibilities map for a branch maintained by a third-country relevant authorised person must include the matters listed in SYSC 4.5.7R, subject to the modifications in (2).

(2)

Unless the context requires otherwise, the following terms in SYSC 4.5.7R are modified as follows:

Reference in SYSC 4.5.7R	Modification
firm	treated as a reference to the branch
governing body, management body, senior management and senior personnel	(a) treated as a reference to the branch’s governing body, management body, senior management or senior personnel; (b) the Glossary definitions of these terms are adjusted so as to refer to the branch rather than the firm as a whole
group	treated as including the rest of the firm
PRA-prescribed senior management responsibilities	treated as a reference to PRA-prescribed UK branch senior management responsibilities
functions allocated under SYSC 4.7.8R (Allocation of overall responsibility for a firm’s activities, business areas and management functions)	treated as a reference to functions allocated under SYSC 4.8.10R (Local responsibility for a branch’s activities, business areas and management functions)

SYSC 4.6.14G07/03/2016

(1)
The guidance below applies to management responsibilities maps for branches maintained by third-country relevant authorised persons, subject to the modifications in (2):
1. (a)
  SYSC 4.5.11G to SYSC 4.5.12G (Guidance about management responsibilities maps);
2. (b)
  SYSC 4.5.15G (Single document);
3. (c)
  SYSC 4.5.16G to SYSC 4.5.17G (Purpose of SYSC 4 Annex 1G (The main business activities and functions of a relevant authorised person));
4. (d)
  SYSC 4.5.18G to SYSC 4.5.20G (Contents of SYSC 4 Annex 1G (The main business activities and functions of a relevant authorised person));
5. (e)
  SYSC 4 Annex 1G (The main business activities and functions of a relevant authorised person); and
6. (f)
  SYSC 4.5.21G to SYSC 4.5.22G (Records).

(2)

Unless the context otherwise requires, the following terms and cross-references in the guidance in (1) are modified as follows:

Reference in guidance in (1)	Modification
firm	treated as a reference to the branch
governing body, senior management and senior personnel	(a) treated as a reference to the branch’s governing body, senior management or senior personnel; (b) the Glossary definitions of these terms are adjusted so as to refer to the branch rather than the firm as a whole
other overall responsibility function	treated as a reference to the other local responsibility function
SYSC 4.5.5R	treated as a reference to SYSC 4.6.7R
SYSC 4.5.7R	subject to modification under SYSC 4.6.9R(2)
SYSC 4.7.8R	treated as a reference to SYSC 4.8.10R
the reference to SYSC 4.5.13G in SYSC 4.5.15G(5)	treated as a reference to SYSC 4.6.29G

TC App 6.1.1G07/03/2016

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 or, for a relevant authorised person, complied with COCON 2and 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. The FCA 2will also expect an accredited body to 2withdraw its statement of professional standing if it 2is 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 or, for a relevant authorised person, compliance with COCON 2. 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 or COCON 2.
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.

COCON 1.1.2R07/03/2016

(1)
COCON applies to:
1. (a)
  an SMF manager;
2. (b)
  an employee (“P”) of a relevant authorised person who:
  1. (i)
    performs the function of an SMF manager;
  2. (ii)
    is not an approved person to perform the function in question; and
  3. (iii)
    is required to be an approved person at the time P performs that function; and
3. (c)
  an employee of a relevant authorised person who would be an SMF manager but for SUP 10C.3.13R (The 12-week rule);
4. (d)
  a certification employee employed by a relevant authorised person, even if the certification employee has not been notified that COCON applies to them or notified of the rules that apply to them;
  2
5. (e)
  an employee of a relevant authorised person who would be a certification employee but for SYSC 5.2.27R(1) (Scope: emergency appointments) or SYSC 5.2.28AR (Scope: temporary UK role)6; and1 2
6. (f)
  [Not used]2 2
7. (g)
  an FCA-approved person or PRA-approved person approved to perform a controlled function in a Solvency II firm (including a large non-directive insurer) or a small non-directive insurer 4.2
(2)
For Swiss general insurers, references in this sourcebook to parts of the PRA Rulebook for ‘Solvency II firms’ are to be read as references to the corresponding parts of the PRA Rulebook applying to large non directive insurers.7
(3)
COCON does not apply to approved persons approved to perform a controlled function in SUP 10A.1.15R to SUP 10A.1.16BR (appointed representatives).2

CONC 3.5.6G02/11/2015

(1) The representative example in CONC 3.5.5 R should not be limited to being representative of agreements featured in the financial promotion if the firmcommunicating or approving the financial promotion expects other agreements to be entered into as a result of the financial promotion, whether with the firm or with a third party. [Note: paragraph 6.8 of BIS Guidance on regulations implementing the Consumer Credit Directive](1A) Firms are referred to the Glossary definition of

COLL 7.7.2G01/07/2011

(1) The effect of COLL 7.7.1 R, and in particular the narrow Glossary definition of domestic UCITS merger which is drafted in accordance with article 2.1(r) of the UCITS Directive, is that this section will not apply to a merger in the United Kingdom between two or more UCITS schemes unless one of them has been the subject of a UCITS marketing notification.(2) For arrangements to constitute a cross-border UCITS merger, at least two of the relevant UCITS must be:(a) established

FEES 5.4.4G01/11/2009

A firm should not provide a statement of relevant business if it deals only with eligible complainants who are not consumers4. Relevant business is defined in the Glossary as business done with consumers4 only. So FEES 5.4.1 R does not apply in relation to business done with other types of eligible complainant described in DISP 2.7.3R (2), DISP 2.7.6R (12)(a) and DISP 2.7.6R (12)(a);2 the funding of FOS Ltd in relation to that business is by special case fee only (see FEES 5.5.6

TC 2.1.30G01/04/2013

The Glossary definition of accredited body contains a list of bodies recognised by the FCA for the purpose of providing the independent verification required under TC 2.1.27 R. Information on accredited bodies, including guidance on the process for including a body in the list is set out inTC Appendix 6G and the obligation to pay the application fee is set out in FEES 3.2.1717

SYSC 4 Annex 1G07/03/2016

Business areas and management functions	Explanation
(1) Payment services	This means: (1) payment services; (2) issuing and administering other means of payment (for example, cheques and bankers' drafts); (3) issuing electronic money; and (4) current accounts.
(2) Settlement	This means clearing and settlement of any transactions described in rows (3) and (6) to (9) of this annex, in relation to the assets covered by (9). It also includes clearing and settlement of any transactions described in row (10).
(3) Investment management	This has the same meaning as managing investments with the following adjustments: (a) it covers all types of assets; and (b) the exclusions in the Regulated Activities Order do not apply. It also covers fund management.
(4) Financial or investment advice	This includes advising on investments.
(5) Mortgage advice	This has the same meaning as advising on regulated mortgage contracts but is expanded to cover land anywhere in the world and to cover security of any kind over land.
(6) Corporate investments	This means acquiring, holding, managing and disposing a firm's investments made for its own account.
(7) Wholesale sales	This means the selling of any investment to a person other than a retail customer. It does not include the activities in (1).
(8) Retail sales	This means the selling of any investment to a retail customer. It includes savings accounts. It does not include the activities in (1).
(9) Trading for clients	This means dealing in investments as agent and execution of orders on behalf of clients but the list of products includes money market instruments and foreign exchange.
(10) Market making	This has the same meaning as it does in MIFID (see the definition of market maker in article 4.1(8)).
(11) Investment research
(12) Origination/syndication and underwriting	Origination and syndication include: (1) entering into or acquiring (directly or indirectly) any commitment or investment with a view to transferring some or all of it to others, or with a view to others investing in the same transaction; (2) sub-participation; and (3) any transaction described in the Glossary definition of originator. Underwriting includes underwriting that is not on a firm commitment basis. A commitment or investment includes an economic interest in some or all of it. This activity also includes the provision of services relating to such transactions.
(13) Retail lending decisions	Deciding whether, and on what terms, to lend to retail customers. Lending includes granting credit, leasing and hire (including finance leasing).
(14) Wholesale lending decisions	Deciding whether, and on what terms, to lend to persons who are not retail customers. Lending includes granting credit, leasing and hire (including finance leasing).
(15) Design and manufacturing of products intended for wholesale customers	Wholesale customers mean persons who are not retail customers
(16) Design and manufacture of products intended for retail customers
(17) Production and distribution of marketing materials and communications	This includes financial promotions
(18) Customer service	This means dealing with clients after the point of sale, including queries and fulfilment of client requests
(19) Customer complaints handling	This includes the firm's compliance with DISP. It also includes: (1) any similar procedures relating to activities that do not come under the jurisdiction of the Financial Ombudsman Service; (2) activities that take place outside the UK; and (3) activities that are not subject to any ombudsman service.
(20) Collection and recovering amounts owed to a firm by its customers Dealing with customers in arrears	‘Customer’ means any person falling into any of the definitions of client in the Glossary so far as they apply to the FCA's Handbook. The definition is extended to cover all services provided by the firm and not just those that are provided in the course of carrying on a regulated activity or an ancillary service.
(21) Middle office	This means risk management and controls in relation to, and accounting for, transactions in securities or derivatives
(22) The firm's information technology
(23) Business continuity planning	This means the functions described in SYSC 4.1.6R and SYSC 4.1.7R
(24) Human resources	This includes recruitment, training and competence and performance monitoring
(25) Incentive schemes for the firm's staff	This is not limited to schemes based on sales.
(26) Providing information in relation to a specified benchmark
(27) Administering a specified benchmark
Note (1): The purpose of this annex is explained in SYSC 4.5 (Management responsibilities maps for UK2 relevant authorised persons) and SYSC 4.7.37G. This annex is also referred to in SYSC 4.6 (Management responsibilities maps for non-UK relevant authorised persons) and SYSC 4.8 (Senior management responsibilities for third-country relevant authorised persons: allocation of responsibilities) (see SYSC 4.6.14 and SYSC 4.8.35).2
Note (2): A firm does not have to use the split of activities in this annex for the purposes in Note (1). If a firm does decide to use it, it may adapt it to suit its management arrangements better. For example, a firm may find the split of activities into retail and wholesale activities unsuitable. If so, the firm might: (a) treat retail and wholesale activities together; or (b) use its own definition of retail and wholesale activities.

Related provisions for GEN 2.2.16

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