Related provisions for SYSC 22.3.1

SYSC 22.7.1R07/03/2017

(1) 1This rule applies when: (a) a full scope regulatory reference firm (A) would otherwise have to ask another person (B) for a reference under SYSC 22.2.1R; and(b) A and B are in the same group. (2) A need not ask for a reference from B if there are adequate arrangements in place under which A has access to the same information sources as B to the extent that they are relevant to things A has to ask B under SYSC 22.2.1R (Obligation to obtain references).(3) If A only has access

SYSC 22.7.3G07/03/2017

The Glossary definition of employer covers more than just a conventional employer and so it may not always be obvious who a person’semployer is. Therefore a full scope regulatory reference firm appointing someone to a position that requires a reference may have to get the employee’s help in identifying their previous employers.

SYSC 22.7.4G07/03/2017

(1) SYSC 22.2.1R (Obligation of a full scope regulatory reference firm to try to obtain a reference) applies even if the ex-employer is not a firm.(2) A full scope regulatory reference firm should take all reasonable steps to try to obtain the reference in these circumstances. However, the FCA accepts that the previous employer may not be willing to give sufficient information.

SYSC 22.7.5G07/03/2017

(1) SYSC 22.2.1R (Obligation of a full scope regulatory reference firm to try to obtain a reference) applies even if the employer has already got a reference for the employee. For example:(a) a relevant authorised person should have a reference whenever it renews the certificate of a certification employee; and(b) changing jobs within the same full scope regulatory reference firm may require a reference. (2) However, the full scope regulatory reference firm does not necessarily

SYSC 22.7.7G07/03/2017

(1) If a full scope regulatory reference firm (A):(a) appoints someone (P) to a specified significant-harm function or an approved person position;(b) obtains a reference from an ex-employer (B); and(c) later wishes to: (i) appoint P to another specified significant-harm function or approved person position; or(ii) keep P in the same specified significant-harm function but make a change in P’s role of the type described in SYSC 5.2.17G (major changes in role), whether that change

SYSC 22.7.8G07/03/2017

If:(1) a firm (A) appoints someone (P) to a specified significant-harm function or approved person position;(2) A obtains a reference from an ex-employer (B); (3) later P transfers to a specified significant-harm function or an approved person position with a full scope regulatory reference firm in A’s group (C); (4) B’s reference is:(a) addressed to all firms in A’s group; or(b) otherwise drafted so that it is clear that C may rely on it; and(5) C does not need to ask for the

SYSC 22.7.9G07/03/2017

If a full scope regulatory reference firm is unable to obtain a reference by the time in column two of the table in SYSC 22.2.3R, it should still try to obtain the reference as soon as possible afterwards.

SYSC 22.7.11G07/03/2017

(1) Although this chapter (see SYSC 22.2.3R) only requires a full scope regulatory reference firm to try to get a reference for a person it is recruiting to perform an FCA controlled function or a PRA controlled function towards the end of the application process, the FCA would normally expect a firm to have obtained the reference before the application for approval is made. (2) The main examples of circumstances in which it would be reasonable for a firm to delay getting a reference

SYSC 22.4.1G07/03/2017

1SYSC 22 Annex 1R (Template for regulatory references given by relevant authorised persons and disclosure requirements) has two purposes:(1) to set out what information a full scope regulatory reference firm should disclose under SYSC 22.2.2R(4); and(2) to provide a template that a full scope regulatory reference firm should use when giving a reference under this chapter.

SYSC 22.4.2R07/03/2017

(1) A full scope regulatory reference firm must use the template in Part One of SYSC 22 Annex 1R (Template for regulatory references given by relevant authorised persons and disclosure requirements) when giving a reference under this chapter to another firm (A). (2) A firm may make minor changes to the format of the template in Part One of SYSC 22 Annex 1R when giving a reference under this chapter, provided that the reference includes all the information required by SYSC 22 Annex

SYSC 22.4.3G07/03/2017

(1) SYSC 22.4.2R does not stop a full scope regulatory reference firm including matters in the reference not required by the template in SYSC 22 Annex 1R. (2) A full scope regulatory reference firm may include the material required by the template and additional material in the same document.(3) Any additional material should not alter the scope of any of the questions in the templates.

SYSC 22.4.4G07/03/2017

A full scope regulatory reference firm should use the template in SYSC 22 Annex 1R (Template for regulatory references given by relevant authorised persons and disclosure requirements) even if the firm asking for the reference does not specifically ask it to.

APER 1.1A.1R07/03/2016

1APER applies to FCA-approved persons and PRA-approved persons who fall under (1) or (2):(1) approved persons of firms that are not:(a) relevant authorised persons; or(b) Solvency II firms or small non-directive insurers2; or(2) approved persons approved to perform a controlled function in SUP 10A.1.15R to SUP 10A.1.16BR (appointed representatives).

APER 1.1A.1AG07/03/2016

(1) 1APER does not apply to FCA-approved persons or PRA-approved persons of relevant authorised persons2, Solvency II firms or small non-directive insurers2. COCON applies instead. For the purposes of APER (and SYSC, SUP 10A, COCON and DEPP) a large non-directive insurer is treated as and included in the Glossary definition of a Solvency II firm2. (2) However, APER applies to approved persons approved to perform a controlled function under SUP 10A.1.15R to SUP 10A.1.16BR (appointed

APER 1.1A.7G07/03/2016

Table: Examples of what activities APER covers

FCA approved	PRA approved	Coverage of APER
FCA-authorised person
(1) Yes, in relation to firm A	Not applicable	Applies to the FCA controlled function. Also applies to any other function performed for firm A in relation to the carrying on by firm A of a regulated activity even if it is not a controlled function.
(2) Yes, in relation to firm A. No, in relation to firm B,	Not applicable	In relation to firm A, the answer is the same as for scenario (1). However, APER does not apply to any function that the approved person carries on in relation to firm B even if that function relates to regulated activities carried out by firm B. However, if the function that he performs in relation to firm B is a controlled function the approved person and firm B may be subject to legal sanctions (see SUP 10A.13.1 G to SUP 10A.13.2 G).
PRA-authorised person that is not a relevant authorised person, or a Solvency II firm or a small non-directive insurer.2 1
(3) Yes, in relation to firm A	No	The answer is the same as for scenario (1).
(4) No	Yes, in relation to firm A	Applies to PRA controlled function. Also applies to any other function performed for firm A in relation to the carrying on by firm A of a regulated activity even if it is not a controlled function.
(5) Yes, in relation to firm A	Yes, in relation to firm A	Applies to FCA controlled function and PRA controlled function. Also applies to any other function performed for firm A in relation to the carrying on by firm A of a regulated activity even if it is not a controlled function.
(6) Yes, in relation to firm A. No, in relation to firm B,	Yes, in relation to firm A. No, in relation to firm B,	In relation to firm A, the answer is the same as for scenario (5). However, APER does not apply to any function that the approved person carries on in relation to firm B even if that function relates to regulated activities carried out by firm B. However, if the function that he performs in relation to firm B is a controlled function the approved person and firm B may be subject to legal sanctions (see SUP 10A.13.1 G to SUP 10A.13.21G).
1 PRA-authorised person that is a relevant authorised person, a Solvency II firm or a small non-directive insurer 2.
1(7) Yes, in relation to firm A	No	No. APER does not apply to approved persons of relevant authorised persons, Solvency II firms or small non-directive insurers 2. COCON applies instead.
1(8) No	Yes, in relation to firm A	The answer is the same as for scenario (7).
1(9) Yes, in relation to firm A	Yes, in relation to firm A	The answer is the same as for scenario (7).

APER 1.1A.8G07/03/2016

(1) A person may be an approved person in relation to more than one firm. When that is the case, APER applies in relation to all those firms.1(2) APER does not apply if the firm is a relevant authorised person or a Solvency II firm, except for approved persons of an appointed representative of a relevant authorised person, a Solvency II firm or a small non-directive insurer2.1(3) If a person is an approved person of a firm (A) that is not a relevant authorised person, a Solvency

SYSC 22.8.4R07/03/2017

When a relevant authorised person is permitting or appointing someone to perform a controlled function whose approval is given under SUP 10A.1.15R or SUP 10A.1.16R (appointed representatives of relevant authorised persons), the requirements of this chapter for firms that are not full scope regulatory reference firms apply in place of the requirements that only apply to full scope regulatory reference firms.

SYSC 22.8.7G07/03/2017

If:(1) a firm (A) is thinking of employing someone (P);(2) P is employed by a group services company (D) that is not a firm; (3) P (in their capacity as an employee of D) performs a function or service for a firm (B) in the same group as D such that P is also an employee of B; and(4) A intends to appoint (P) to a position that entitles A to obtain a reference from B;then: (5) (if A is a full scope regulatory reference firm) A should ask both B and D for a reference;(6) B is obliged

SYSC 22.8.9G07/03/2017

If:(1) a firm (A) is thinking of appointing someone (P) to a position that entitles A to obtain a reference from another firm (B); and (2) P was an employee of other members of B’s group as well as of B;then:(3) (if A is a full scope regulatory reference firm) A should ask all the group members that employed P for a reference; (4) B should give a reference if A asks it to (whether or not A is a full scope regulatory reference firm); (5) P’s employers in that group (including any

SYSC 22.2.1R07/03/2017

(1) 1If a full scope regulatory reference firm (A) is considering:(a) permitting or appointing someone (P) to perform a controlled function; or(b) issuing a certificate under the certification regime for P;(as explained in more detail in rows (A) and (B) of the table in SYSC 22.2.3R), A must take reasonable steps to obtain appropriate references from: (c) P’s current employer; and(d) anyone who has been P’s employer in the past six years.(2) A must take reasonable steps to obtain

SYSC 22.2.2R07/03/2017

(1) A firm (B) must provide a reference to another firm (A) as soon as reasonably practicable if:(a) A is considering:(i) permitting or appointing someone (P) to perform a controlled function; or(ii) issuing a certificate under the certification regime for P; or(iii) appointing P to another position in the table in SYSC 22.2.3R; (as explained in more detail in the table in SYSC 22.2.3R);(b) A makes a request, for a reference or other information in respect of P from B, in B’s

SYSC 22.2.4R07/03/2017

If at any time:(1) a full scope regulatory reference firm (B) has given a reference under SYSC 22.2.2R to another firm (A) about an employee or ex-employee of B (P);(2) B was also a full scope regulatory reference firm when it gave the reference in (1);(3) either of the following applies:(a) B is aware of matters or circumstances that mean that if B had been aware of them when giving that reference, this chapter would have required B to draft the reference differently; or(b) the

SYSC 22.2.7R07/03/2017

If at any time:(1) a full scope regulatory reference firm (B) has given a reference under SYSC 22.2.2R to another firm (A) about an employee or ex-employee of B (P);(2) B asks A whether P is still an employee of A; and(3) B gave A the reference no more than six years ago;A must answer that question as soon as reasonably practicable, even if B does not tell A why it wants to know that information.

COCON 1.1.2R07/03/2017

(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;
  1 2 1
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;
  1 1 2
6. (f)
  any other employee of a relevant authorised person, except: 1 2
  2
  1. (i)
    a non-executive director other than a senior conduct rules staff member; and1 2
  2. (ii)
    an employee whose role is listed under COCON 1.1.2R(2); and2
    1
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 COCON does not apply to an employee of a relevant authorised person who only performs functions falling within the scope of the following roles:1
1. (a)
  receptionists;1
2. (b)
  switchboard operators;1
3. (c)
  post room staff;1
4. (d)
  reprographics/print room staff;1
5. (e)
  property/facilities management;1
6. (f)
  events management;1
7. (g)
  security guards;1
8. (h)
  invoice processing;1
9. (i)
  audio visual technicians;1
10. (j)
  vending machine staff;1
11. (k)
  medical staff;1
12. (l)
  archive records management;1
13. (m)
  drivers;1
14. (n)
  corporate social responsibility staff;1
15. (o)
  data controllers or processors under the Data Protection Act 1998;1
16. (p)
  cleaners;1
17. (q)
  catering staff;1
18. (r)
  personal assistant or secretary;1
19. (s)
  information technology support (ie, helpdesk); and1
20. (t)
  human resources administrators /processors.1
(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

COCON 1.1.8G07/03/2016

(1) Both COCON 1.1.6R and COCON 1.1.7R may apply to the same individual performing several roles.(2) For example, say that an individual (A) is an approved person for firm X and is employed by firm Y in a role that does not involve a controlled function. Say that firm X is a Solvency II firm or a small non-directive insurer4 and that firm2Y is a relevant authorised person.(3) COCON 1.1.6R applies to A’s role with firm X and COCON 1.1.7R applies to A’s role with firm Y.

COCON 1.1.10R07/03/2016

(1) This rule applies to members of a firm’sconduct rules staff apart from conduct rules staff in COCON 1.1.9R. 6522(2) Subject to (3), COCON only applies to the conduct of persons to whom this rule applies (as set out in (1)) if that conduct:6(a) 6is performed from an establishment maintained in the United Kingdom by:(i) (for a relevant authorised person) that person’semployer; or(ii) (for a Solvency II firm or a small non-directive insurer8) the firm in relation to whom that

SYSC 22.9.1R07/03/2017

(1) 1A full scope regulatory reference firm must arrange for orderly records to be created and kept that are sufficient to enable it to comply with the requirements of this chapter.(2) This rule only applies to records in relation to the following questions in Part One of SYSC 22 Annex 1R (Template for regulatory references given by relevant authorised persons and disclosure requirements): (a) question (E) (fit and proper); and (b) question (F) (disciplinary action).

SYSC 22.9.5G07/03/2017

(1) SYSC 22.9.1R applies to keeping records created before the date this chapter came into force as well as ones created afterwards.(2) A full scope regulatory reference firm does not breach the requirements of this chapter by failing to include something in a reference because it destroyed the relevant records before the date this chapter came into force in accordance with the record keeping requirements applicable to it at the time of destruction.

SYSC 22.3.2G07/03/2017

SYSC 22.4 has requirements about the form in which a full scope regulatory reference firm should give a reference.

SYSC 22.6.3G07/03/2017

(1) If a firm has taken disciplinary action of the type referred to in question (F) in Part One of SYSC 22 Annex 1R (Template for regulatory references given by relevant authorised persons and disclosure requirements) against an employee and is asked to give a reference about that employee, the firm should (if it has not already done so) consider whether the basis on which it took that action amounts to a breach of any individual conduct requirements covered by question (F).

SYSC 22.6.4G07/03/2017

(1) SYSC 22.2.2R(1) to (3) may require a full scope regulatory reference firm to disclose information that goes beyond the mandatory minimum information in Part One of SYSC 22 Annex 1R (Template for regulatory references given by relevant authorised persons and disclosure requirements).(2) This may mean, for instance, that a firm should in some cases disclose a conclusion that an employee or former employee has breached COCON or APER where that conclusion was reached outside the

SYSC 22.5.12G07/03/2017

(1) An example of information that may be relevant under SYSC 22.2.2R(1) to (3) is the fact that the employee has breached a requirement in APER.(2) This means that any firm (not just one that is a full scope regulatory reference firm) should consider whether it needs to disclose a breach of APER when giving a reference under this chapter.

SYSC 1.1A.2G07/03/2017

21The provisions in SYSC should be read in conjunction with GEN 2.2.23 R to GEN 2.2.25 G. In particular:(1) [deleted]9(2) Provisions made by the FCA, and by the9PRA in the PRA Rulebook,9 may be applied by both regulators to PRA-authorised persons. Such provisions are applied by each regulator to the extent of its powers and regulatory responsibilities.95(3) 5For Solvency II firms, the FCA considers that the requirements and guidance in Chapters 2, 3, 12 to 18,11 21 and 2211 of

Related provisions for SYSC 22.3.1

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