Related provisions for LR 11.1.1D
421 - 440 of 1122 items.
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).
(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.7 G gives examples of the effect of APER 1.1A.1R and APER 1.1A.2R1. The first column says whether the example involves an FCA-approved person and the second column says whether the example involves a PRA-approved person. So for example if there is a "Yes" in both columns that means that the example concerns a person who has been approved both by the FCA and by the PRA. The third column explains what functions APER covers in the scenario set out in the first two columns.
Table: Examples of what activities APER covers
FCA approved |
PRA approved |
Coverage of APER |
FCA-authorised person |
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(1) Yes, in relation to firm A |
Not applicable |
Applies to the FCAcontrolled 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. |
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). |
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PRA-authorised person that is not a relevant authorised person, or a Solvency II firm or a small non-directive insurer.2 1 |
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(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 PRAcontrolled 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 FCAcontrolled function and PRAcontrolled 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. |
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). |
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1PRA-authorised person that is a relevant authorised person, a Solvency II firm or a small non-directive insurer2. |
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No |
No. APER does not apply to approved persons of relevant authorised persons, Solvency II firms or small non-directive insurers2. COCON applies instead. |
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1(8) No |
Yes, in relation to firm A |
The answer is the same as for scenario (7). |
Yes, in relation to firm A |
The answer is the same as for scenario (7). |
|
Once every calendar year, a CASS debt management firm must notify the FCA, in writing, of the information in (1), (2) or (3), as applicable, and the information in (4), in each case no later than the day specified in (1) to (4):(1) if it held client money in the previous calendar year, the highest total amount of client money held during the previous calendar year, notification of which must be made no later than the fifteenth business day of January; or (2) if it did not hold
(1) Notwithstanding CASS 11.2.3 R, provided that the conditions in (2) are satisfied, a CASS debt management firm that would otherwise be classified as a CASS small debt management firm under the limits provided for in CASS 11.2.3 R may elect to be treated as a CASS large debt management firm.(2) The conditions to which (1) refers are that in either case: (a) the election is notified to the FCA in writing;(b) the notification in accordance with (a) is made at least one week before
A firm's 'CASS debt management firm type' and any change to it takes effect:(1) if the firm notifies the FCA in accordance with CASS 11.2.4 R (1) or CASS 11.2.4 R (2), on 1 February following the notification; or(2) if the firm notifies the FCA in accordance with CASS 11.2.4 R (3), on the day it begins to hold client money; or(3) if the firm makes an election under CASS 11.2.7 R and provided the conditions in CASS 11.2.7 R (2) are satisfied, on the day the notification made under
This chapter applies principally to any person who needs to know whether he carries on insurance mediation activities and is thereby subject to FCA regulation. As such it will be of relevance among others to:(1) insurance brokers;(2) insurance advisers;(3) insurance undertakings; and(4) other persons involved in the sale and administration of contracts of insurance, even where these activities are secondary to their main business.
This guidance is issued under section 139A of the Act (Guidance). It is designed to throw light on particular aspects of regulatory requirements, not to be an exhaustive description of a person's obligations. If a person acts in line with the guidance and the circumstances contemplated by it, then the FCA will proceed on the footing that the person has complied with aspects of the requirement to which the guidance relates.
Rights conferred on third parties cannot be affected by guidance given by the FCA. This guidance represents the FCA's view, and does not bind the courts, for example, in relation to the enforceability of a contract where there has been a breach of the general prohibition on carrying on a regulated activity in the United Kingdom without authorisation (see sections 26 to 29 of the Act (Enforceability of Agreements)).
A parent undertaking which wishes to make use of the exemption in relation to issuers subject to this chapter whose shares are admitted to trading on a regulated market must without delay, notify the following to the FCA:1(1) a list of the names of those management companies, investment firms or other entities, indicating the competent authorities that supervise them, but with no reference to the issuers concerned; and(2) a statement that, in the case of each such management company
A parent undertaking of a management company or of an investment firm must in relation to issuers subject to this chapter whose shares are admitted to trading on a regulated market be able to demonstrate to the FCA on request that:1(1) the organisational structures of the parent undertaking and the management company or investment firm are such that the voting rights are exercised independently of the parent undertaking;(2) the persons who decide how the voting rights are exercised
A parent undertaking of a third country undertaking must comply with the notification requirements in DTR 5.4.4 R (1) and DTR 5.4.5 R and in addition: (1) must make a statement that in respect of each management company or investment firm concerned, the parent undertaking complies with the conditions of independence set down in DTR 5.4.10 R; and (2) must1 be able to demonstrate to the FCA on request that the requirements of DTR 5.4.6 R are respected.[Note: article 23 of the TD
Section 80 (1) of the Act (general duty of disclosure in listing
particulars) requires listing particulars submitted
to the FCA to contain all such information as investors
and their professional advisers would reasonably require, and reasonably expect
to find there, for the purpose of making an informed assessment of:(1) the assets and liabilities, financial
position, profits and losses, and prospects of the issuer of
the securities; and(2) the rights attaching to the securi
A request to the FCA to authorise the omission of specific
information in a particular case must:(1) be in writing from the issuer;(2) identify the specific information
concerned and the specific reasons for the omission; and(3) state why in the issuer's opinion
one or more of the grounds in section 82 of the Act applies.
The FCA anticipates that there will be only a few firms needing to seek approval for an individual to perform the significant management function set out in SUP 10A.9.1R (1). In most firms, those approved for the FCA governing functions, FCA required functions and, where appropriate, the systems and controls function or the equivalent PRA controlled functions, are likely to exercise all the significant influence at senior management level.
A proprietary trader undertakes activities with the firm'smoney and has the ability to commit the firm. By virtue of this role, all proprietary traders have potential to be able to exercise significant influence on the firm for the purposes of the definition of significant-influence function. Therefore, it is the FCA's expectation that all firms will assess all their proprietary traders to ascertain the ones for whom approval is required.
The question may arise whether a manager who is based overseas will be performing the significant management function under SUP 10A.9.9 R and should, therefore, be an FCA-approved person. This is especially true where the firm operates matrix management. The fact there is a person performing the apportionment and oversight function, and who has responsibility for activities subject to regulation by the FCA, may have a bearing on this. It is a factor to take into account when assessing
1DEPP 6A sets out the FCA's2 statement of policy with respect to:423323(1) 4the imposition of suspensions or restrictions under sections 88A, 89Q and 206A of the Act, and the period for which those suspensions or restrictions are to have effect, as required by sections 88C(1), 89S(1) and 210(1) of the Act;4(2) 4the imposition of suspensions, conditions or limitations under section 66 of the Act, the period for which suspensions or conditions are to have effect, and the period
The power to impose a suspension, restriction, condition,4 limitation or disciplinary prohibition4 is a disciplinary measure which the FCA2 may use in addition to, or instead of, imposing a financial penalty
or issuing a public censure.
The principal purpose of imposing such a measure3 is to promote
high standards of regulatory and/or market conduct by deterring persons who have committed breaches from
committing further breaches,
helping to deter other persons from
committing
The powers to impose a suspension, restriction, condition or limitation3 in relation
to authorised persons and approved persons, and to impose a disciplinary prohibition in relation to individuals,4 are disciplinary measures;2 where the FCA2 considers it necessary to take action, for example, to protect consumers from an authorised
person, the FCA2 will seek to cancel or vary the authorised
person'spermissions.
If the FCA2 has
concerns with a person's fitness
to be approved, and
3The FCA expects to impose a limitation in two situations. The FCA may impose a limitation where it considers it appropriate for an approval to cease to have effect:(1) after a certain period, unless the approved person demonstrates during the period of limitation that it is appropriate for them to be reapproved without the limitation;(2) after a short period, without giving the approved person the opportunity to demonstrate that they should be re-approved.The imposition of a
Table: To whom does COCON apply? 9
9Persons to whom COCON applies |
Comments9 |
(1) An SMF manager.9 |
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(2) An employee (“P”) of a relevant authorised person who:9 (a) performs the function of an SMF manager;9 (b) is not an approved person to perform the function in question; and9 (c) is required to be an approved person at the time P performs that function.9 |
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(3) An employee of a relevant authorised person who would be an SMF manager but for SUP 10C.3.13R (The 12-week rule). 9 |
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(4) A certification employee employed by a relevant authorised person.9 |
This applies even if the certification employee has not been notified that COCON applies to them or notified of the rules that apply to them.9 |
(5) 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). 9 |
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(6) Any employee of a relevant authorised person not coming within another row of this table, except one listed in column (2). 9 |
This row does not apply to an employee of a relevant authorised person who only performs functions falling within the scope of the following roles:9 (a) receptionists; (b) switchboard operators; (c) post room staff; (d) reprographics/print room staff; (e) property/facilities management; (f) events management; (g) security guards; (h) invoice processing; (i) audio visual technicians; (j) vending machine staff; (k) medical staff; (l) archive records management; (m) drivers; (n) corporate social responsibility staff; (o) data controllers or processors under the Data Protection Act 1998; (p) cleaners; (q) catering staff; (r) personal assistant or secretary; (s) information technology support (ie, helpdesk); and (t) human resources administrators /processors. |
(7) An FCA-approved person or PRA-approved person approved to perform a controlled function in a Solvency II firm or a small non-directive insurer. 9 |
This row does not apply to approved persons approved to perform a controlled function in SUP 10A.1.15R to SUP 10A.1.16BR (appointed representatives).9 |
(8) A standard non-executive director of:9 (a) a relevant authorised person; 9 (b) a Solvency II firm; or 9 |
This row only applies to a UK domestic firm.9 |
Note: In accordance with the Glossary, Solvency II firm includes a large non-directive insurer.9 |
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The FCA interprets the phrase ‘dealing with’ in COCON 1.1.10R as including having contact with customers and extending beyond ‘dealing’ as used in the phrase ‘dealing in investments’. ‘Dealing in’ is used in Schedule 2 to the Act to describe, in general terms, the regulated activities which are specified in Part II of the Regulated Activities Order.
6The FCA interprets the phrase ‘a client of the firm in the United Kingdom’ in COCON 1.1.10R as referring to:(1) for a client which is a body corporate, its office or branch in the United Kingdom; or(2) for a client who is an individual, a client who is in the United Kingdom at the time of the dealing.
A firm is not subject to consolidated supervision under the rules in this Chapter where any of the following conditions are fulfilled: (1) the firm is included in the supervision on a consolidated basis of the group of which it is a member by a competent authority other than the FCA; or (2) the firm is a member of a UK consolidation group already included in the supervision on a consolidated basis of the group of which it is a member by the FCA under BIPRU 8; or (3) the firm
A firm need not meet the requirements in rules 14.3.1 and 14.3.2 if: (1) there is no credit
institution in the group;
(2) no firm in the group
deals in investments as principal, except where it is dealing solely as a result of its activity of operating a collective investment
scheme, or where the firm's positions fulfil the CAD Article 5 exempting criteria; (3) [Deleted](4) the firm notifies
If the firm notifies the FCA under rule 14.1.4 that it will not apply the rules in this section, it must: (1) submit to FCA a consolidated supervision return within the time period specified by SUP 16, together with a consolidated profit and loss
account;
(2) ensure that each firm in the group deducts from its solo financial resources any quantifiable contingent liability in respect of other group entities; (3) ensure that the solo financial
(1) [Deleted](2) The conditions in rule 14.1.5 aim to ensure that the firm is protected from weaknesses in other group entities. (3) In rule 14.1.5(2), contingent liabilities includes direct and indirect guarantees.
(4) 14.1.5(3) aims to ensure that the expenditure-based requirement incorporates the firm's actual ongoing annual expenditures (including any share of depreciation on fixed assets) where these have been met by another group entity. (5) The FCA
(1) One purpose of the management responsibilities map for third country relevant authorised persons is to help the firm and the FCA satisfy themselves that the branch has a clear organisational structure (as required by SYSC, where applicable). (2) It also helps the FCA to identify who it needs to speak to about particular issues and who is accountable if something goes wrong.
(1) The management responsibilities map is an important support to the FCA’s functions as Host Statecompetent authority.(2) Having requirements and powers that apply directly to individuals helps to make the requirements on firms that the FCA is required or entitled to impose as Host Statecompetent authority more effective.(3) The management responsibilities map helps the FCA to operate its powers and requirements for individuals. For example it helps the FCA:(a) to identify
An EEA relevant authorised person may exclude from its management responsibilities map:(1) any information contained in its requisite details;(2) any information contained in any notice of changes to its requisite details under the EEA Passport Rights Regulations; and(3) any other information that has been supplied by the firm to the FCA or the PRA (including through the firm’sHome Statecompetent authority) if:(a) that information was supplied to the FCA or the PRA as a Host Statecompetent
(1) The guidance in this paragraph applies to EEA relevant authorised persons and third-country relevant authorised persons.(2) The FCA expects that the management responsibilities map of a small and non-complex branch is likely to be simple and short. It may be no more than a single sheet of paper.(3) A branch is likely to be small and non-complex if it:(a) conducts a limited number of simple business lines; and(b) does not rely on group governance arrangements or on governance
A firm does not have to give notice to the FCA2 under SUP 15.9.1 R if it or another member of the consolidation group has already given notice of the relevant fact to:55(1) the FCA2 or55(2) (if another competent authority is co-ordinator of the financial conglomerate ) that competent authority; or(3) (in the case of a financial conglomerate that does not yet have a co-ordinator ) the competent authority who would be co-ordinator under Article 10(2) of the Financial Groups Directive
(1) 3A firm must, at the level of the EEA financial conglomerate, regularly provide the FCA2 with details on the financial conglomerate's legal structure and governance and organisational structure, including all regulated entities, non-regulated subsidiaries and significant branches.(2) A firm must disclose publicly, at the level of the EEA financial conglomerate, on an annual basis, either in full or by way of references to equivalent information, a description of the financial
The FOS ADR levy is
calculated as follows:(1) Determine the number of hours, or part of an
hour, taken by the FCA, in performing functions
under the ADR Regulations.(2) Using the table at FEES 3 Annex 9R(11),
determine the relevant pay grades of those employed by the
FCA to perform the functions under the
ADR Regulations.(3) Next, multiply the applicable rate in the table
at FEES 3 Annex 9R(11) by the number of hours or part hours obtained under
(1).(4) Then add any fees and disbursements
(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
A CASS large debt management firm must allocate to a director or senior manager the function of: (1) oversight of the operational effectiveness of that CASS debt management firm's systems and controls that are designed to achieve compliance with CASS 11; (2) reporting to the CASS debt management firm'sgoverning body in respect of that oversight; and(3) completing and submitting a CCR005 return to the FCA in accordance with SUP 16.12.29C R.
If, at the time a CASS debt management firm that is not a relevant authorised person1becomes a CASS large debt management firm in accordance with CASS 11.2.8 R, the firm is not able to comply with CASS 11.3.4 R because it has no director or senior manager who is an approved person in respect of the CASS operational oversight function, the firm must:(1) take the necessary steps to ensure that it complies with CASS 11.3.4 R as soon as practicable, which must at least include submitting
(1) 1CASS 11.3.5R provides a grace period for a firm that is not a relevant authorised person to apply for someone to be approved to perform the CASS operational oversight function. (2) There is no equivalent to CASS 11.3.5R for a relevant authorised person, because a person does not need specific FCA approval before carrying out the function. This is explained in (3) to (5), below.(3) As explained in CASS 11.3.3G, the function in CASS 11.3.5R is not, by itself, a controlled function.(4)
(1) 6A must be capable of being effectively supervised by the FCA having regard to all the circumstances including-(a) the nature (including the complexity) of the regulated activities that A carries on or seeks to carry on;(b) the complexity of any products that A provides or will provide in carrying on those activities;(c) the way in which A’s business is organised;(d) if A is a member of a group, whether membership of the group is likely to prevent the FCA’s effective supervision
(1) 6B must be capable of being effectively supervised by the FCA having regard to all the circumstances including-(a) the nature (including the complexity) of the regulated activities that B carries on or seeks to carry on;(b) the complexity of any products that B provides or will provide in carrying on those activities;(c) the way in which B’s business is organised;(d) if B is a member of a group, whether membership of the group is likely to prevent the FCA’s effective supervision
6The guidance in COND 2.3 should be read as applying to both paragraph 2C of Schedule 6 of the Act and, as far as relevant to the discharge by the FCA of its functions under the Act in respect of firms carrying on, or seeking to carry on, a PRA-regulated activity, paragraph 3B of Schedule 6 of the Act.
In assessing the threshold conditions set out in paragraphs 2C and 3B of Schedule 6 to the Act6, factors which the FCA6 will take into consideration include, among other things, whether: 6(1) it is likely that the FCA6 will receive adequate information from the firm, and those persons with whom the firm has close links, to enable it to determine whether the firm is complying with the requirements and standards under the regulatory system for which the FCA is responsible6 and to
The FCA understands that in complying with condition 2(g) of the Part 30 exemption order, a firm is representing that it will not:(1) make use of the opt-out arrangements in CASS 7.10.9G2 to CASS 7.10.13G2; or(2) conduct business to which the client money rules do not apply because of the exemption for CRD credit institutions and approved banks in CASS 7.10.16R2 to CASS 7.10.24R2; or(3) enter into any TTCA under CASS 7.113;2in relation to business conducted pursuant to the Part
For firms with exemptive relief under the Part 30 exemption order, the CFTC has issued certain no-action letters which, on the FCA's understanding, would allow such firms to use an LME bond arrangement as an alternative to complying with condition 2(g) of the Part 30 exemption order. Under an LME bond arrangement, a firm may arrange for a binding letter of credit to be issued to cover the 'secured amount' (as defined by section 30.7 of the General Regulations under the US Commodity
3Where an issuer or person is required to file regulated information under DTR 6.2.2R, the issuer or person must, at the same time, notify the following to the FCA: (1) the legal entity identifier (LEI) of the issuer concerned; and(2) the classifications relevant to the regulated information using the classes and sub-classes in DTR 6 Annex 1R.
(1) A listed company must notify a RIS as soon as possible when a document has been forwarded to the FCA under LR 9.6.1 R or LR 9.6.2 R unless the full text of the document is provided to the RIS.(2) A notification made under paragraph (1) must set out where copies of the relevant document can be obtained.
A listed company which changes its name must, as soon as possible:(1) notify a RIS of the change, stating the date on which it has taken effect;(2) inform the FCA in writing of the change; and(3) where the listed company is incorporated in the United Kingdom, send the FCA a copy of the revised certificate of incorporation issued by the Registrar of Companies.
A benchmark submitter who suspects that any person(1) is manipulating, or has manipulated, a specified benchmark;(2) is attempting, or has attempted, to manipulate a specified benchmark; or(3) is colluding, or has colluded, in the manipulation or attempted manipulation of a specified benchmark;must notify the FCA without delay.
(1) The FCA expects the report required under MAR 8.2.12 R to be issued annually, although the FCA may agree a longer period depending on the benchmark submitter's particular circumstances, including the nature and scale of its engagement in the specified benchmark and the internal framework for monitoring compliance with the requirements of this chapter.(2) A benchmark submitter which proposes to appoint an auditor to report to the FCA under MAR 8.2.12 R on a less frequent than
(1) 1A person who notifies the FCA of a desire to obtain interim permission in accordance with article 56 (Interim permission) of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No 2) Order 2013 must pay to the FCA, in full and without deduction, a fee of :(a) where the person is a sole trader:(i) if the notification is made on or before 30 November 2013, £105; or(ii) £150; (b) in any other case:(i) if the notification is made on or before 30 November
(1) 2A local authority which notifies the FCA of a desire to obtain interim permission in accordance with article 56 (Interim permission) of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No 2) Order 2013 must pay to the FCA, in full and without deduction, a fee of £350.(2) The fee required by (1) must be paid by debit card (Maestro/Visa only), credit card (Visa/Mastercard only), bankers draft, cheque, or other payable order.(3) The fee required