Related provisions for SUP 9.4.3
61 - 80 of 434 items.
The Handbook primarily
contains provisions which apply to all firms or
to certain categories of firm.
However, a firm may apply for
a waiver or modification of rules in
certain circumstances as set out in SUP
8; or it may receive individual guidance on
the application of the rules,
as set out in SUP 9.
The FCA2, in the course of its supervision of a firm,
may sometimes judge it necessary or desirable to impose additional requirements on a firm or
in some way amend or restrict the activities which the firm has permission to undertake. The guidance in this chapter describes when and
how the FCA2 will
seek to do this.22
(1) Section 55C of the Financial Services Act 2012 (Power to amend Schedule 6) gave HM Treasury the power to amend Schedule 6 of the Act. HM Treasury exercised this power by making The Financial Services and Markets Act 2000 (Threshold Conditions) Order 2013 which entered into force on 1 April 2013 (the "TC Order"). The TC Order's main result is the creation of four sets of threshold conditions, namely:(i) conditions for firms authorised and regulated by the FCA only (paragraphs
(1) As a result of the new legal framework for threshold conditions described in COND 1.1A.1G (1), PRA-authorised persons and firms seeking to become PRA-authorised persons are subject to two sets of threshold conditions:(i) the FCA-specific conditions referred to in COND 1.1A.1G (1)(ii)and(ii) one of the two PRA-specific conditions referred to in COND 1.1A.1G (1)(iii) or (iv), depending on the PRA-regulated activities which the PRA-authorised person or firm carries on, or is
(1) The rules and guidance in this sourcebook apply to recognised bodies and to applicants for recognition as RIEs under Part XVIII of the Act (Recognised Investment Exchanges and Clearing Houses) and (as RAPs) under the RAP regulations7.65(2) The recognition requirements and guidance in REC 2 relate primarily to UK RIEs which are recognised, or applying to be recognised, to operate a regulated market in the United Kingdom.5(3) While some recognition requirements in REC 2 apply
(1) The recognition requirements for UK recognised bodies5are set out, with guidance, in REC 2.6 The RAP recognition requirements (other than requirements under the UK auctioning regulations which are not reproduced in REC) are set out, with guidance, in REC 2A.723(1A) Key relevant MiFID/MiFIR requirements directly applicable to UK recognised bodies are signposted as “Notes”.5(2) The notification rules for UKrecognised bodies are set out in REC 3 together with guidance on those
An applicant for recognised
body status needs to demonstrate to the FCA5 that it is able to meet the recognised body requirements31before a recognition
order can be made. Once it has been recognised, a recognised body has to comply with the recognised
body requirements31at all times. (Guidance on
the recognised
body requirements3 applicable to UK
recognised bodies (and applicants) is given in REC 2 and REC 2A).35333
Where the FCA5 considers that it is unlikely to make a recognition
order it will discuss its concerns with
the applicant as early as possible with a view to enabling the applicant to
make changes to its rules or guidance, or other parts of the application (see REC 5.2.7 G).
If the FCA5 decides
that it will not make a recognition order,
it will follow the procedure set out in section 298 of the Act (Directions
and revocation: procedure) or (in the case of a RAP) regulation 5 of
(1) The purposes of this section are to:(a) provide UK recognised bodies with guidance regarding the provisions of PIDA; and(b) Encourage UK recognised bodies to consider adopting and communicating to workers appropriate internal procedures for handling workers' concerns as part of an effective risk management system.(2) In this section "worker" includes, but is not limited to, an individual who has entered into a contract of employment.
(1) UK recognised bodies are encouraged to consider adopting appropriate internal procedures which will encourage their workers with concerns to blow the whistle internally about matters which are relevant to the functions of the FCA.22(2) In considering appropriate internal procedures, UK recognised bodiesmay find the guidance provided to firms in SYSC 18.2.2 G (2) and SYSC 18.2.2 G (3)1 helpful.1
Anyone who is carrying on a regulated activity is likely to make financial promotions in the course of or for the purposes of carrying on that activity. It is beyond the scope of this guidance to cover regulated activities as such (for a general guide see PERG 2). There are circumstances, however, where persons whose main aim is either:(1) to make financial promotions for their own purposes or on behalf of others; or(2) to help other persons to make financial promotions;may find
The guidance that follows is concerned with the regulated activities of making arrangements with a view to transactions in investments1and advising on investments (except P2P agreements)5. Guidance on the regulated activities of making arrangements with a view to regulated mortgage contracts1and advising on regulated mortgage contracts is in PERG 4 (Guidance on regulated activities1 connected with mortgages). Guidance on the regulated activities of making arrangements with a view
3As explained inPERG 1.2.3AG, where the guidance that follows uses the defined term advising on investments, this term should be read as referring only to the regulated activity (in article 53(1) of the Regulated Activities Order) of advising on investments (except P2P agreements). Related text should be construed accordingly.
(1) 3(a) MCOB 7.1 to MCOB 7.3, MCOB 7.5 and MCOB 7.6 (as modified by this section) apply to a firm where the home finance transaction is a lifetime mortgage.3(b) MCOB 7.1 to MCOB 7.3 (as modified by this section) apply to a firm where the home finance transaction is a home reversion plan, except that those provisions that by their nature are only relevant to regulated mortgage contracts do not apply to home reversion plans (see MCOB 9.1.2A G).3(2) The table in MCOB 9.6.2 R shows
Table of modified cross-references to other rules:
This table belongs to MCOB 9.6.1R.
Subject |
Rule or guidance |
Reference in rule or guidance |
To be read as a reference to: |
Application |
MCOB 7.1.4R |
MCOB 7.6.7R - MCOB 7.6.33G as modified by MCOB 9.8.5R - 9.8.9R |
|
Application |
MCOB 7.1.5R |
||
Information in more than one document |
MCOB 7.3.3R |
MCOB 7 |
|
Frequency of statements |
MCOB 7.5.6G |
MCOB 7.5.3R(2) |
MCOB 9.8.1R(2) |
Annual statement - additional content |
MCOB 7.5.9G |
MCOB 7.5.3R(2)(b) |
MCOB 9.8.1R |
Further advances |
MCOB 7.6.7R |
MCOB 5 |
MCOB 9.4 |
Further advances |
MCOB 7.6.10G |
MCOB 7.6.9R(10 |
MCOB 9.8.5R(1) |
Further advances |
MCOB 7.6.10G |
MCOB 5.6.34 |
MCOB 9.4.114R |
Further advances |
MCOB 7.6.11G |
MCOB 7.6.9R(3) and (4) |
MCOB 9.8.5R(3) |
Further advances |
MCOB 7.6.11G(2) |
MCOB 5.6.40R |
MCOB 9.4.37R |
Further advances |
MCOB 7.6.12G |
MCOB 7.6.9R(3) |
MCOB 9.8.5R(3) |
Further advances |
MCOB 7.6.13R |
MCOB 5.6.25R(2)(a) |
MCOB 9.4.24R(4)(a) |
Further advances |
MCOB 7.6.13R |
MCOB 7.6.9R(3)(b) |
MCOB 9.8.5R(3)(b) |
Further advances |
MCOB 7.6.14R |
MCOB 5 |
MCOB 9 |
Rate switches |
MCOB 7.6.20R |
MCOB 5 |
MCOB 9 |
Rate switches |
MCOB 7.6.20R |
MCOB 5 |
MCOB 9 |
Addition or removal of party to contract |
MCOB 7.6.22R |
MCOB 5 |
MCOB 9 |
Addition or removal of party to contract |
MCOB 7.6.25R |
MCOB 5 |
MCOB 9 |
Changes to payments |
MCOB 7.6.29R |
MCOB 7.6.28R |
|
Changes to payments |
MCOB 7.6.30R |
MCOB 7.6.28R |
MCOB 9.8.9R or MCOB 9.8.10R |
Use of illustrations |
MCOB 7.6.31R |
MCOB 7.6.28R |
|
Use of illustrations |
MCOB 7.6.31R |
MCOB 5 |
MCOB 9 |
Use of illustrations |
MCOB 7.6.32R |
MCOB 7.6.28R |
|
Use of illustrations |
MCOB 7.6.32R |
||
Simultaneous requests |
MCOB 7.6.33G |
||
Simultaneous requests |
MCOB 7.6.33G |
MCOB 5 |
MCOB 9 |
Table of rules in MCOB 7 replaced by rules in this chapter:
This table belongs to MCOB 9.6.1R.
Subject |
Rule or guidance |
Rule replaced by: |
Information at start of contract |
MCOB 7.4 |
MCOB 9.7 |
Content of statement |
MCOB 5.3R |
MCOB 9.8.1R |
Frequency of statements |
MCOB 7.5.5R |
MCOB 9.8.2R |
Event-driven information |
MCOB 7.6.1R |
MCOB 9.8.3R |
Release of additional borrowing |
MCOB 7.6.6G |
MCOB 9.8.4G |
Further advances |
MCOB 7.6.9R |
MCOB 9.8.5G |
Further advances |
MCOB 7.6.16R |
MCOB 9.8.7R |
Addition or removal of party to contract |
MCOB 7.6.27R |
MCOB 9.8.8R |
Changes to payments |
MCOB 7.6.28R |
Any person who carries on a regulated activity in the United Kingdom by way of business must either be an authorised person or exempt from the need for authorisation. Otherwise, the person commits a criminal offence and certain agreements may be unenforceable. PERG 2.2 (Authorisation and regulated activities) has further guidance on these consequences.2
An unauthorised person who intends to carry on activities connected with contracts of insurance will need to comply with section 21 of the Act (Restrictions on financial promotion). This guidance does not cover financial promotions that relate to contracts of insurance. Persons should refer to the general guidance on financial promotion in PERG 8 (Financial promotion and related activities). (See in particular PERG 8.17A (Financial promotions concerning insurance distribution4
2This chapter applies to:(1) a firm;(2) in relation to the guidance4 in SYSC 18.3.9G, 45every firm; 54(3) in relation to SYSC 18.3.6R and SYSC 18.3.10R, EEA SMCR banking firms6 and third-country SMCR banking firms6 only in relation to a branch maintained by them in the United Kingdom; and54(4) in relation to SYSC 18.6.1R to SYSC 18.6.3G (Whistleblowing obligations under MiFID):5(a) a UK MiFID investment firm, except a collective portfolio management firm; and5(b) a third country
2Firms are reminded that for the purpose of SYSC 18 (except for SYSC 18.3.9G) “firm” has the specific meaning set out in paragraph (8) of that definition in the Glossary, namely:“(8) (in SYSC 18, with the exception of the guidance in SYSC 18.3.9G):5(a) a UK SMCR banking firm6 except a small deposit taker; and3(b) a firm as referred to in Chapter 1.1 of the PRA Rulebook: Solvency II Firms: Whistleblowing Instrument 2015.”
The first activity (article 25A(1) and (2A)2) is referred to in this guidance as arranging (bringing about) regulated mortgage contracts. Various points arise:(1) It is not necessary for the potential borrower himself to be involved in making the arrangements.(2) This activity is carried on only if the arrangements bring about, or would bring about a regulated mortgage contract. This is because of the exclusion in article 26 (see PERG 4.5.4 G). As explained in PERG 4.5.4A G, this
The second activity (article 25A(2)) is referred to in this guidance as making arrangements with a view to regulated mortgage contracts. This activity is different from article 25A(1) and (2A)2) because it requires a potential borrower to actively participate by utilising the arrangements to enter into a regulated mortgage contract. It does not require that the arrangements would bring about a regulated mortgage contract. Nor does it cover arrangements leading to contract variations.
In the FCA's view, the crucial element of the exclusion in article 27 is the inclusion of the word "merely". When a publisher, broadcaster or Internet website operator goes beyond what is necessary for him to provide his service of publishing, broadcasting or otherwise facilitating the issue of promotions, he may well bring himself within the scope of article 25A(2). Further detailed guidance relating to the scope of the exclusion in article 27 is contained in PERG 8.32.6 G to
(1) The Financial Services and Markets Act 2000 (the Act) is the UK legislation under which bodies corporate, partnerships, individuals and unincorporated associations are permitted by the FCA or PRA to carry on various financial activities which are subject to regulation (referred to as regulated activities).(2) The activities which are regulated activities are specified in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (the Regulated Activities
(1) The Act, and the secondary legislation made under the Act, is complex. Although PERG gives guidance about regulated activities and financial promotions, it does not aim to, nor can it, be exhaustive.(2) References have been made to relevant provisions in the Act or secondary legislation. However, since reproducing an entire statutory provision would sometimes require a lengthy quotation, or considerable further explanation, many provisions of the Act, or secondary legislation
PERG 1.4.1 G (General guidance to be found in PERG) summarises the general guidance contained in PERG. Readers should note that in a cross-reference, as explained in paragraph 40 of the Readers' Guide, the code letters of the manual or sourcebook immediately precede the chapter number. For example, PERG 1 is the first chapter of the Perimeter Guidance manual. PERG 1.5 provides details of and links to other general guidance on perimeter issues that is available on the FCA webs
(1) MCOB 5.1 to MCOB 5.5 (with the modifications stated in MCOB 9.3.2 R to MCOB 9.3.12 R) apply to a firm where the home finance transaction is an equity release transaction, except that those provisions that by their nature are only relevant to regulated mortgage contracts do not apply to home reversion plans (see MCOB 9.1.2A G).33(2) The table in MCOB 9.3.2 R shows how the relevant rules and guidance in MCOB 5 must be modified by replacing the cross-references with the relevant
Table of modified cross-references to other rules.
This table belongs to MCOB 9.3.1 R.
Subject |
Rule or guidance |
Reference in rule or guidance |
To be read as a reference to: |
Variations |
MCOB 5.1.3R(2) |
MCOB 7 |
|
Part of loan not an equity release transaction2 2 |
MCOB 5.1.9G |
MCOB 5.6.6R(2) |
MCOB 9.4.6R(2) |
Waiver of provisions |
MCOB 5.1.10G |
MCOB 5.6 |
MCOB 9.4. |
Purpose |
MCOB 5.2.1G |
MCOB 5 |
|
Applying for a lifetime mortgage2 2 |
MCOB 5.3.2G |
||
4Messages to be given when providing information on equity release transactions |
MCOB 4.4A.1R (1), MCOB 4.4A.2 R and MCOB 4.4A.4R (1), each as applied by MCOB 8.3.1 R in modified form |
||
4Messages to be given when customer requests an execution-only sale |
|||
MCOB 9 Annex 1 R for a lifetime mortgage; MCOB 9 Annex 2 R for a home reversion plan. |
|||
MCOB 5.4.24G |
MCOB 5.6.74R |
||
4Provision of illustrations: timing |
MCOB 4.8A.14R (1), (2) or (3) |
||
Issue of offer document in place of illustration |
MCOB 5.5.3G |
||
Customer's credit record |
MCOB 5.5.16R |
MCOB 5.5.15R(4) |
MCOB 9.3.12R(3) |
Table of rules in MCOB 5 replaced by rules in MCOB 9: This table belongs to MCOB 9.3.1R
Subject |
Rule(s) or guidance |
Rule(s) or guidance replaced by: |
Accuracy of the illustration |
||
Providing anillustration |
MCOB 5.5.15R - |
MCOB 9.3.12R - |
Content ofillustration |
MCOB 5.6 |
MCOB 9.4 |
Some of the other rules and guidance in the Handbook deal with the bearing of the Principles upon particular circumstances. However, since the Principles are also designed as a general statement of regulatory requirements applicable in new or unforeseen situations, and in situations in which there is no need for guidance, the FCA's11 other rules and guidance or onshored regulations13 should not be viewed as exhausting the implications of the Principles themselves.11
The purpose of this guidance is three-fold:11(1) to outline the restriction on financial promotion under section 21 of the Act (Restrictions on financial promotion) and the main exemptions from this restriction; and(2) to outline the main circumstances in which persons who are primarily involved in making or helping others to make financial promotions may be conducting regulated activities requiring authorisation or exemption themselves; this part of the guidance may also be of
In particular, this guidance covers:(1) invitations and inducements (see PERG 8.4);(2) meaning of 'in the course of business' (see PERG 8.5);(3) meaning of 'communicate' (see PERG 8.6);(4) meaning of 'engage in investment activity' (see PERG 8.7);(4A) meaning of ‘engage in claims management activity’ (see PERG 8.7A);2(5) meaning of 'having an effect in the United Kingdom' (see PERG 8.8);(6) circumstances where the restriction in section 21 does not apply (see PERG 8.9);(7) types
This guidance is issued under section 139A of the Act. It represents the FCA's views and does not bind the courts. For example, it would not bind the courts in an action for damages brought by a private person for breach of a rule (see section 138D of the Act (Actions for damages)), or in relation to the enforceability of a contract where there has been a breach of sections 19 (The general prohibition) or 21 (Restrictions on financial promotion) of the Act (see sections 26 to
There is a general concern that the practice of companies issuing statements and giving briefings may involve a financial promotion. These arise sometimes as a result of requirements imposed by a listing authority or an exchange or market, PERG 8.4.14 G offers guidance on when such statements or briefings may amount to or involve an inducement to engage in investment activity. It indicates that whilst statements of fact alone will not be inducements, there may be circumstances
PERG 8.12.32 G contains detailed guidance on the exemption in article 20A. The exemption is capable of applying to financial promotions in a company statement or briefing where they are communicated through a webcast if the website is a regularly updated news or information service. For this to be the case, the website must be a service provided to persons who use it (so it must not, for example, simply be an advertising vehicle) and that service must be one of providing news
The reference to financial promotions which are permitted to be communicated relates, in the FCA's opinion, to something which is expressly permitted rather than simply not expressly prohibited. Article 67 itself does not specify any particular medium for communicating required or permitted material. So, it will be enough for the financial promotion to be part of a document which is itself required or permitted to be communicated (such as reports or financial statements). Market
(1) 3(a) 3Subject to (c),4MCOB 4.1 to MCOB 4.6A4 (with the modifications stated in MCOB 8.3.2B R to4MCOB 8.3.4 R) apply to a firm where the home finance transaction is a lifetime mortgage.343(b) MCOB 4.1 to MCOB 4.4A4 (with the modifications stated inMCOB 8.3.2B R to4MCOB 8.3.4 R) apply to a firm where the home finance transaction is a home reversion plan, except for those provisions that by their nature are only relevant to regulated mortgage contracts.34(c) MCOB 4.6A applies
Table of modified cross-references to other rules: This table belongs to MCOB 8.3.1 R.
Subject |
Rule or guidance |
Reference in rule or guidance |
To be read as a reference to: |
Additional disclosure for distance mortgage mediation contracts |
MCOB 4.5 |