Related provisions for IFPRU 2.2.44
The guidance in relation to the recognition requirements in the sections of REC 2 listed in Column A of the table below applies to an RAP in relation to the equivalent RAP recognition requirements listed in Column C and (if shown) with the modifications in Column B.
Table: Guidance on RAP recognition requirements
Column A REC 2 guidance which applies to an RAP |
Column B Modification to REC 2 guidance for an RAP |
Column C Relevant RAP recognition requirement |
REC 2.2.2 G to REC 2.2.7 G (Relevant circumstances and Outsourcing) |
Reg 13 |
|
REC 2.3.3 G to REC 2.3.9 G (Financial resources) |
Reg 14 |
|
REC 2.4.3 G to REC 2.4.6 G (Suitability) |
In addition to the matters set out in REC 2.4.3 G to REC 2.4.6 G, the FCA3 will have regard to whether a key individual has been allocated responsibility for overseeing the auction platform of the UK recognised body. 3 |
Reg 15 |
REC 2.5.3 G to REC 2.5.20 G (Systems and controls and conflicts) and REC 2.5A (Guidance on Public Interest Disclosure Act: Whistleblowing) |
Reg 16 and 17(2)(f)1 |
|
REC 2.6.26 G to REC 2.6.34 G (Safeguards for investors) |
Reg 17 |
|
REC 2.7.3 G to REC 2.7.4 G (Access to facilities) |
The FCA3 shall have regard to whether an RAP provides access to bid at auctions only to those persons eligible to bid under article 18 of the auction regulation. 3 |
Reg 17(2)(a) and1 20 |
REC 2.8.3 G to REC 2.8.4 G (Settlement and clearing services) |
Reg 17(2)(d) and 21 |
|
REC 2.9.3 G to REC 2.9.4 G (Transaction recording) |
Reg 17(2)(e) |
|
REC 2.10.3 G to REC 2.10.4 G (Financial crime and market abuse) |
Reg 17(2)(g) |
|
REC 2.11.3 G to REC 2.11.4 G (Custody) |
REC 2.11.4 G is replaced with the following for an RAP: Where an RAP arranges for other persons to provide services for the safeguarding and administration services of assets belonging to users of its facilities, it will also need to satisfy the RAP recognition requirement in regulation 17(2)(h) of the RAP regulations (see REC 2A.2.1 UK). |
Reg 17(2)(h) |
REC 2.12.11 G to REC 2.12.12 G (Availability of relevant information) |
REC 2.12.11 G to REC 2.12.12 G are replaced with the following for an RAP: In determining whether appropriate arrangements have been made to make relevant information available to persons engaged in dealing in emissions auction products2 the FCA3 may have regard to: (1) the extent to which auction bidders are able to obtain information in a timely fashion about the terms of those emissions auction products2 and the terms on which they will be auctioned, either through accepted channels for dissemination of information or through other regularly and widely accessible communication media; (2) what restrictions, if any, there are on the dissemination of relevant information to auction bidders; and (3) whether relevant information is, or can be, kept to restricted groups of persons in such a way as to facilitate or encourage market abuse. An RAP does not need to maintain its own arrangements for providing information on the terms of emissions auction products2 to auction bidders where it has made adequate arrangements for other persons to do so on its behalf or there are other effective and reliable arrangements for this purpose. 2322 |
Reg 17(2)(c) |
REC 2.13.3 G to REC 2.13.6 G (Promotion and maintenance of standards) |
Reg 18 |
|
REC 2.14.3 G to REC 2.14.6 G (Rules and consultation) |
Reg 19 |
|
REC 2.15.3 G to REC 2.15.6 G (Discipline) |
Reg 22 |
|
REC 2.16.3 G to REC 2.16.4 G (Complaints) |
Reg 23 |
Exempt CAD firms |
OPS firms (see Note 1 below) |
Non-OPS Life Offices and Non-OPS Local Authorities |
Individuals admitted to membership collectively |
|
Financial resources rules |
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No (see Note 3 below) |
No |
No |
Yes |
|
Individuals whose sole investment business is giving investment advice to institutional or corporate investors |
Firms subject to "lead regulator arrangements" |
All other firms |
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Financial resources rules |
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No |
No |
Yes |
||
(see Note 2 below) |
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Accounting records rules |
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IPRU-INV 5.3.1R (1) to 5.3.1R(6) |
No |
Yes |
Yes |
|
Note 1. Firms are referred to the specific compliance reports for OPS firms required by Chapter 16 of the Supervision Manual. |
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Note 2. A firm subject to "lead regulator arrangements" whereby a body other than the FCA is responsible for its financial regulation shall comply with the corresponding financial resources rules and financial returns rules of that body, and a breach of such rules shall be treated as a breach of the rules of the FCA. |
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Note 3. The financial and non-financial resources rules for an exempt CAD firm are set out in IPRU-INV chapter 9. However, IPRU-INV 5.2.1R to 5.7.3R apply to an exempt CAD firm for the purpose of calculating its own funds (see IPRU-INV 9.2.9R(2)(a)) (although the Category A items of Tier 1 capital as set out in IPRU-INV 5.8.1R are replaced by all the items in IPRU-INV 9.3.1R) and if it carries on any regulated activity other than MiFID business (see IPRU-INV 9.2.3R). |