Related provisions for SUP 10A.4.1

21 - 37 of 37 items.

FIT 1.1.4G07/03/2017

1Table: Situations to which FIT applies

What FIT applies to	Does it apply to relevant authorised persons?	Does it apply to firms that are not relevant authorised persons?	Comment
(1) A firm assessing the fitness and propriety of a candidate whom the firm is proposing to put forward for approval	Yes	No	However, the answer to Question 11 in SUP 10A Annex 1 (Frequently asked questions) says that the FCA's approval process is not a substitute for the checks that a firm should be carrying out on its prospective recruits. FIT may be a useful guide to matters that a firm that is not a relevant authorised person should take into account.
(2) A firm assessing the continuing fitness and propriety of an approved person	Yes	No	However, a firm should employ personnel with the skills, knowledge and expertise necessary for the discharge of the responsibilities allocated to them (SYSC 5.1). FIT may be a useful guide to matters which a firm should take into account if it is not a relevant authorised person.
(3) The FCA assessing the fitness and propriety of a candidate for approval as an approved person	Yes	Yes
(4) The FCA assessing the continuing fitness and propriety of an approved person	Yes	Yes
1(5) A firm assessing the fitness and propriety of a person whom a firm is proposing to certify to perform an FCA specified significant-harm function	Yes	No	See the comment on row (2)
1(6) A firm assessing the continuing fitness and propriety of a person whom a firm has certified to perform an FCA specified significant-harm function	Yes	No	See the comment on row (2)

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

SUP 10C.7.3G07/03/2016

Table: Examples of how the other overall responsibility function applies

1Example	Comments
(1) ‘A’ is appointed to perform the executive director function and to perform a potential other overall responsibility function for the same firm.	A only needs approval to perform the executive director function.
(2) ‘A’ is approved to perform the other overall responsibility function. Later, A is appointed to perform the executive director function for the same firm.	A requires approval for the other overall responsibility function when A is first appointed. When A is later approved to perform the executive director function, A stops performing the other overall responsibility function. The firm should use Form E to apply for approval for A to perform the executive director function.
(3) ‘A’ is appointed to perform the PRA's Head of Key Business Area designated senior management function and to perform a potential other overall responsibility function for the same firm.	A only needs approval to perform the PRA's Head of Key Business Area designated senior management function. It does not make any difference whether the potential other overall responsibility function that A performs is connected to the PRA's Head of Key Business Area designated senior management function.
(4) ‘A’ is approved to perform the other overall responsibility function. Later, A is appointed to perform the PRA's Head of Key Business Area designated senior management function for the same firm.	A requires approval for the other overall responsibility function when A is first appointed. When A is later approved to perform the PRA's Head of Key Business Area designated senior management function, A stops performing the other overall responsibility function.
(5) ‘A’ is appointed to perform: (a) the compliance oversight function for one firm (Firm X) in a group (which may or may not be a relevant authorised person); and (b) a function coming within the scope of the other overall responsibility function for another firm (which is a relevant authorised person) in the same group (Firm Y).	A needs approval to perform the compliance oversight function for Firm X and the other overall responsibility function for Firm Y.
(6) ‘A’ is appointed to be head of sales and to report directly to the firm's governing body about this. This function also comes within the PRA's Head of Key Business Area designated senior management function.	A only needs approval to perform the PRA's Head of Key Business Area designated senior management function.
(7) ‘A’ is appointed to take on some functions that come within the other overall responsibility function. Later, A is appointed as chief risk officer.	On A’s first appointment, A will need to be approved to perform the other overall responsibility function. On being appointed as chief risk officer, the answer for example (4) applies because being chief risk officer is a PRA-designated senior management function. A will stop performing the other overall responsibility function.
(8) ‘A’ is appointed to a role that comes within the other overall responsibility function. Later, the firm reorganises and A’s role comes within the PRA's Head of Key Business Area designated senior management function. A’s role does not otherwise change.	The answer for example (7) applies.
(9) ‘A’ is appointed to a role that comes within the PRA's Head of Key Business Area designated senior management function. It is also a potential other overall responsibility function. Later, the firm reorganises—A’s role stays the same but now it falls outside the PRA's Head of Key Business Area designated senior management function.	On A’s first appointment, A only needs approval to perform the PRA's Head of Key Business Area designated senior management function. Following the reorganisation, the firm has three months to get approval for A to perform the other overall responsibility function. This three-month period applies because the relevant PRA rules keep the PRA's Head of Key Business Area designated senior management function in place, which means that the other overall responsibility function does not apply during that period. The relevant PRA rules can be found in Chapter 2 of the part of the PRA rulebook titled ‘Senior Management Functions’.
(10) ‘A’ is appointed to a role that comes within the PRA's Head of Key Business Area designated senior management function. A also performs a potential other overall responsibility function. A gives up the PRA role but carries on with the potential other overall responsibility function.	The answer to example (9) applies.
(11) ‘A’ is appointed as an executive director. A then resigns and takes up a job with the same firm coming within the other overall responsibility function.	On A’s first appointment, A will need to be approved to perform the executive director function. A will need to get approval to perform the other overall responsibility function before A gives up being a director.
Note (1): A potential other overall responsibility function means a function that would have come within the other overall responsibility function but is excluded by SUP 10C.7.1R(2).
Note (2): A potential other overall responsibility function should be recorded in A’s statement of responsibilities and in the firm's management responsibilities map.

CASS 1A.3.1BG07/03/2016

(1) (a) CASS 1A.3.1AR describes the FCA controlled function known as the CASS operational oversight function (CF10a). The table of FCA controlled functions3 in SUP 10A.4.4R3 together with SUP 10A.7.9R3 specify the CASS operational oversight function as an FCA required function4 for a firm to which CASS 1A.3.1AR applies.3(b) The CASS operational oversight function does not apply to a relevant authorised person.3(2) (a) For a firm that is a UK relevant authorised person5, the function

CASS 11.3.3G07/03/2016

(1) CASS 11.3.4R describes the FCA controlled function known as the CASS operational oversight function (CF10a) in relation to CASS large debt management firms, including not-for-profit debt advice bodies.1(2) As a consequence of CASS 11.3.4R (in conjunction with SUP 10A.4.1R and SUP 10A.7.10R), in a CASS large debt management firm (including a not-for-profit debt advice body fitting into that category) the function described in CASS 11.3.4R is required to be discharged by a director

CREDS 10.1.3G03/01/2017

Module	Relevance to Credit Unions
The Principles for Businesses (PRIN)	The Principles for Businesses (PRIN) set out 3high-level requirements 3imposed by the FCA 3. They provide a general statement of regulatory requirements. The Principles apply to all12 credit unions. In applying the Principles to credit unions, the FCA 3 will be mindful of proportionality. In practice, the implications are likely to vary according to the size and complexity 3of the credit union. 12 12 12 12 12
Senior Management Arrangements, Systems and Controls (SYSC)	SYSC 1,3SYSC 4 to 10 and SYSC 213 apply to all credit unions in respect of the carrying on of their regulated activities and unregulated activities in a prudential context. SYSC 4.5 (Management responsibilities maps for relevant authorised persons), SYSC 4.7 (Senior management responsibilities for relevant authorised persons: allocation of responsibilities), SYSC 4.9 (Handover procedures and material), SYSC 5.2 (Certification regime) and SYSC 18 apply3 to all credit unions in respect of both their regulated activities and their unregulated activities3.
3Code of Conduct (COCON)	This contains rules and guidance that are directly applicable to a credit union’s SMF managers, certification employees and (from 2017) other conduct rules staff. There is also guidance for credit unions on giving their staff training about COCON.
Threshold Conditions (COND)	In order to become authorised under the Act all firms must meet the threshold conditions. The threshold conditions must be met on a continuing basis by credit unions. Failure to meet one of the conditions is sufficient grounds for the exercise by the FCA 3 of its powers. 12 12 12
3	3 12 3 12
The Fit and Proper test for Approved Persons (FIT)	The purpose of FIT is to set out and describe the criteria that a firm should3 consider when assessing the fitness and propriety of a person (1)3 in respect of whom an application is being made for approval to undertake a controlled function under the approved persons regime, (2)3 who has already been approved, (3) who is a certification employee or (4) whom a firm is considering appointing to be a certification employee 3. It also sets out and describes criteria that the FCA will consider when assessing the fitness and propriety of a candidate for a controlled function position and that it may consider when assessing the continuing fitness and propriety of approved persons.3 12 3 12
General Provisions (GEN)	GEN contains rules and guidance on general matters, including interpreting the Handbook, statutory status disclosure, the FCA's 3 logo and insurance against financial penalties. 12
Fees manual (FEES)	This manual sets out the fees applying to credit unions.
3Prudential sourcebook for Mortgage and Home Finance Firms, and Insurance Intermediaries (MIPRU)	MIPRU applies to any credit union carrying out insurance mediation activity or home finance mediation activity, or using these services. In particular, it sets out requirements for allocation of responsibility for the credit union’s insurance mediation activity (MIPRU 2), for the use of home finance intermediaries (MIPRU 5) and for professional indemnity insurance (MIPRU 3).
Conduct of Business sourcebook (COBS)	A credit union which acts as a CTF provider or provides a cash-deposit ISA will need to be aware of the relevant requirements in COBS. COBS 4.6 (Past, simulated past and future performance), COBS 4.7.1 R (Direct offer financial promotions), COBS 4.10 (Systems and controls and approving and communicating financial promotions), COBS 13 (Preparing product information) and COBS 14 (Providing product information to clients) apply with respect to accepting deposits as set out in those provisions, COBS 4.1 and BCOBS. A credit union that communicates with clients, including in a financial promotion, in relation to the promotion of deferred shares and credit union subordinated debt will need to be aware of the requirements of COBS 4.2 (Fair, clear and not misleading communications) and COBS 4.5 (Communicating with retail clients).4
3Insurance: Conduct of Business sourcebook (ICOBS)	ICOBS applies to any credit union carrying on non-investment insurance activities, such as arranging or advising on general insurance contracts to be taken out by members. But ICOBS does not apply to a credit union taking out an insurance policy for itself, such as a policy against default by members on their loans where the credit union is the beneficiary of the policy, since in this circumstance the credit union would not be acting as an insurance intermediary, but would itself be the customer. Credit unions are reminded that they are subject to the requirements of the appropriate legislation, including the Credit Unions Act 1979, relating to activities a credit union may carry on.
3Mortgages and Home Finance: Conduct of Business sourcebook (MCOB)	MCOB applies to any credit union that engages in any home finance activity. MCOB rules cover advising and selling standards, responsible lending (including affordability assessment), charges, and the fair treatment of customers in payment difficulties.
Banking: Conduct of Business sourcebook (BCOBS)	BCOBS sets out rules and guidance for credit unions on how they should conduct their business with their customers. In particular there are rules and guidance relating to communications with banking customers 3and financial promotions (BCOBS 2), distance communications (BCOBS 3), information to be communicated to banking customers 3(BCOBS 4), post sale requirements (BCOBS 5), and cancellation (BCOBS 6). 3The rules in BCOBS 3.1 that relate to distance contracts may apply 3to a credit union. This is because the Distance Marketing Directive 3applies where there is "an organised distance sales or service-provision scheme run by the supplier" (Article 2(a)), i.e. if the credit union routinely sells any of its services by post, telephone, fax or the internet3.
Supervision manual (SUP)	The following provisions of SUP are relevant to credit unions: 13SUP 1A13 (The FCA’s 3 approach to supervision), SUP 2 (Information gathering by the FCA or PRA 3 on its own initiative), SUP 3.1 to SUP 3.8 (Auditors), SUP 5 (Skilled persons), SUP 6 (Applications to vary or cancel Part 4A12permission), SUP 7 (Individual requirements), SUP 8 (Waiver and modification of rules), SUP 9 (Individual guidance), 13SUP 10C (FCA senior management regime for approved persons in relevant authorised persons),3SUP 11 (Controllers and Close links), SUP 15 (Notifications to the FCA or PRA 3) and SUP 16 (Reporting Requirements). Credit unions are reminded that they are subject to the requirements of the Act and SUP 11 on close links, and are bound to notify the FCA 3 of changes. It may be unlikely, in practice, that credit unions will develop such relationships. It is possible, however, that a person may acquire close links with a 3 credit union 3 within the meaning of the Act by reason of holding the prescribed proportion of deferred shares in the credit union. In relation to SUP 16, credit unions are exempted from the requirement to submit annual reports of 3 close links. 12 12 12 12 12 13 12 12 12 12
3Consumer Credit sourcebook (CONC)	CONC contains rules that apply to firms carrying on credit-related regulated activities. PERG 2.7.19IG provides guidance on relevant exemptions. Most credit union lending is therefore outside the scope of CONC. However, subject to the constraints in the Credit Unions Act 1979 or the Credit Unions (Northern Ireland) Order 1985 (as relevant), credit unions may undertake credit-related regulated activities to which CONC does apply if the activity is carried out by way of business. This could include lending under a borrower-lender-supplier agreement, or debt adjusting or debt counselling where the credit union is not the lender. A credit union carrying on such activities should consider whether it requires permission to do so. Further information can be found on the FCA’s website.
Decision, Procedure and Penalties manual (DEPP)	DEPP is relevant to credit unions because it sets out: (1) the FCA's 12 decision-making procedure for giving statutory notices. These are warning notices, decision notices and supervisory notices (DEPP 1.2 to DEPP 5); and (2) the FCA's 12 policy with respect to the imposition and amount of penalties under the Act (see DEPP 6). 12 12
Dispute Resolution: Complaints (DISP)	DISP sets out rules and guidance in relation to treating complainants fairly and the Financial Ombudsman Service.
Compensation (COMP)	COMP sets out rules relating to the scheme for compensating consumers when authorised firms are unable, or likely to be unable, to satisfy claims against them.12
The Enforcement Guide (EG)	The Enforcement Guide (EG) describes the FCA's 12 approach to exercising the main enforcement powers given to it by the Act and by other legislation.2 12
Financial crime: a guide for firms (FC)	FC provides guidance on steps that a firm can take to reduce the risk that it might be used to further financial crime.

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.

APER 2.1A.3R07/03/2016

1Statements of Principle issued under section 64A(1)(a) 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 higher management function 1 must take reasonable steps to ensure that the business of the firm for which they are 1responsible in their 1 accountable function is organised so that it can be controlled effectively.

Statement of Principle 6

An approved person performing an accountable higher management function 1 must exercise due skill, care and diligence in managing the business of the firm for which they are1 responsible in their 1 accountable function.

Statement of Principle 7

An approved person performing an accountable higher management function 1 must take reasonable steps to ensure that the business of the firm for which they are 1responsible in their 1 accountable function complies with the relevant requirements and standards of the regulatory system.

SUP 6.3.25G07/03/2016

Information which may be required. See SUP 6.3.24 G

Type of business	Information which may be required
All	1. Details of how the firm plans to comply with the relevant regulator's27 regulatory requirements relating to any additional regulated activities it is seeking to carry on. 27
	2. Descriptions of the firm's key controls, senior management arrangements and audit and proposed compliance arrangements in respect of any new regulated activity (see SYSC).
	3. Organisation charts and details of individuals transferring or being recruited to perform new controlled functions (see SUP 10A and SUP 10C, and the corresponding PRA requirements 20for details of the application or transfer procedures under the approved persons regime).
Insurance business	1. A scheme of operations in accordance with SUP App 2.
	2. (If the application seeks to vary a permission to include motor vehicle liability insurance business) details of the claims representatives12 required by threshold condition 3F27 (Appointment of claims representatives), if applicable. 12
Accepting deposits and designated investment business	1. A business plan which includes the impact of the variation on the firm's existing or continuing business financial projections for the firm, including the impact of the requested change27 on the firm's financial resources and capital adequacy requirements.2 27

Related provisions for SUP 10A.4.1

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Information which may be required. See SUP 6.3.24 G