Related provisions for EG 12.3.3

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CASS 12.2.2GRP
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
CASS 12.2.3GRP
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
CASS 12.2.5RRP
A firm must notify the FCA immediately if it arranges the issue of a letter of credit for a specified client who is the named beneficiary under an LME bond arrangement.
SYSC 8.1.1RRP
1A common platform firm must:(1) when relying on a third party for the performance of operational functions which are critical for the performance of regulated activities, listed activities or ancillary services (in this chapter "relevant services and activities") on a continuous and satisfactory basis, ensure that it takes reasonable steps to avoid undue additional operational risk; and7(2) not undertake the outsourcing of important operational functions in such a way as to impair
SYSC 8.1.8RRP
A UCITS investment firm7 must in particular take the necessary steps to ensure that the following conditions are satisfied:(1) the service provider must have the ability, capacity, and any authorisation required by law to perform the outsourced functions, services or activities reliably and professionally;(2) the service provider must carry out the outsourced services effectively, and to this end the firm must establish methods for assessing the standard of performance of the
SYSC 8.1.11RRP
A firm (other than a common platform firm)7 must make available on request to the FCA78all information necessary to enable the FCA78to supervise the compliance of the performance of the outsourced activities with the requirements of the regulatory system.7
SYSC 8.1.12GRP
As SUP 15.3.8 G explains, a firm should notify the FCA7 when it intends to rely on a third party for the performance of operational functions which are critical or important for the performance of relevant services and activities on a continuous and satisfactory basis.[Note: recital 44 to7 the MiFID Org Regulation7]2
SUP 16.20.1RRP
1This section applies to a firm or qualifying parent undertaking who is required to send any of the following types of information to the FCA: (1) recovery plans in line with IFPRU 11.2 (Individual recovery plans); or(2) group recovery plans in line with IFPRU 11.3 (Group recovery plans); or(3) information required for resolution plans in line with IFPRU 11.4 (Information for resolution plans).
SUP 16.20.2RRP

A firm or qualifying parent undertaking must send its recovery plan or group recovery plan to the FCA within three months of the reporting reference dates specified in the table below:

Type of firm or qualifying parent undertaking

Type of plan

Total balance sheet assets (see SUP 16.20.3 G)

First reporting reference date

Ongoing reporting reference date

firm or qualifying parent undertaking in an RRD group that includes an IFPRU 730k firm that is a significant IFPRU firm or does not include an IFPRU 730k firm

group recovery plan

More than £2.5 billion

30 June 2015

Every year on the same date as the first reporting reference date.

More than £1 billion and less than £2.5 billion

30 September 2015

More than £500 million and less than £1 billion

31 December 2015

Less than £500 million

31 March 2016

significant IFPRU firm

recovery plan

More than £2.5 billion

30 June 2015

Every year on the same date as the first reporting reference date.

More than £1 billion and less than £2.5 billion

30 September 2015

More than £500 million and less than £1 billion

31 December 2015

Less than £500 million

31 March 2016

firm or qualifying parent undertaking in an RRD group that includes an IFPRU 730k firm that is not a significant IFPRU firm4 (but does not include an IFPRU 730k firm that is a significant IFPRU firm4)

group recovery plan

More than £50 million and less than £500 million

30 September 2015

Every two years on the same date as the first reporting reference date.

More than £15 million and less than £50 million

31 December 2015

More than £5 million and less than £15 million

31 March 2016

Less than £5 million

30 June 2016

non-significant IFPRU firm

recovery plan

More than £50 million and less than £500 million

30 September 2015

Every two years on the same date as the first reporting reference date.

More than £15 million and less than £50 million

31 December 2015

More than £5 million and less than £15 million

31 March 2016

Less than £5 million

30 June 2016

[Note: articles 4(1)(b) and 6(1) of RRD]

SUP 16.20.4RRP

A firm or qualifying parent undertaking must send the information required for a resolution plan to the FCA within three months of the reporting reference dates specified in the table below:

Type of firm or qualifying parent undertaking

First reporting reference date

Ongoing reporting reference date

firm or qualifying parent undertaking in an RRD group that includes an IFPRU 730k firm that is a significant IFPRU firm or does not include an IFPRU 730k firm

30 June 2015

Every two years on the same date as the first reporting reference date.

significant IFPRU firm

30 June 2015

Every two years on the same date as the first reporting reference date.

firm or qualifying parent undertaking in an RRD group that includes an IFPRU 730k firm that is not a significant IFPRU firm (but does not include an IFPRU 730k firm that is a significant IFPRU firm)

31 December 2015

Every three years on the same date as the first reporting reference date.

non-significant IFPRU firm

31 December 2015

Every three years on the same date as the first reporting reference date.

[Note: articles4 4(1)(b), 11(1) and 13(1) of RRD]

SUP 16.20.6RRP
2A firm must submit its recovery plan and the information required for its resolution plan to the FCA online through the appropriate systems accessible from the FCA’s website, using the forms specified in SUP 16 Annex 40R.
EG 8.3.1RP
1The FCA may impose a variation of permission or a requirement so that it takes effect immediately or on a specified date if it reasonably considers it necessary for the variation or requirement to take effect immediately (or on the date specified), having regard to the ground on which it is exercising its own-initiative powers.
EG 8.3.2RP
1The FCA will consider exercising its own-initiative power2where: (1) the information available to it indicates serious concerns about the firm or its business that need to be addressed immediately; and (2) circumstances indicate that it is appropriate to use statutory powers immediately to require and/or prohibit certain actions by the firm in order to ensure the firm addresses these concerns.
EG 8.3.3RP
1It is not possible to provide an exhaustive list of the situations that will give rise to such serious concerns, but they are likely to include one or more of the following characteristics: (1) information indicating significant loss, risk of loss or other adverse effects for consumers, where action is necessary to protect their interests; (2) information indicating that a firm's conduct has put it at risk of being used for the purposes of financial crime, or of being otherwise
EG 8.3.4RP
1The FCA will consider the full circumstances of each case when it decides whether a2 variation of Part 4A permission or an imposition of a requirement is appropriate. The following is a non-exhaustive list of factors the FCA may consider. (1) The extent of any loss, or risk of loss, or other adverse effect on consumers. The more serious the loss or potential loss or other adverse effect, the more likely it is that the FCA’s2exercise of own-initiative powers will be appropriate,
FEES 8.1.1RRP
(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
FEES 8.1.3RRP
(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
APER 4.1.2GRP
4In the opinion of the FCA3, conduct of the type described in APER 4.1.3G, APER 4.1.5G, APER 4.1.6G, APER 4.1.8G, APER 4.1.10G, APER 4.1.12G, APER 4.1.13G, APER 4.1.14G or APER 4.1.15G3 does not comply with Statement of Principle 1.
APER 4.1.3GRP
3Deliberately misleading (or attempting to mislead) by act or omission: (1) a client; or(2) his APER employer5 (or its auditors or an actuary appointed by his APER employer5 under SUP 4 (Actuaries) 1); or1(3) the FCA or the PRA;falls within APER 4.1.2G.
APER 4.1.4GRP
3Behaviour of the type referred to in APER 4.1.3G includes, but is not limited to, deliberately:(1) falsifying documents;(2) misleading a client about the risks of an investment;(3) misleading a client about the charges or surrender penalties of investment products;(4) misleading a client about the likely performance of investment products by providing inappropriate projections of future investment returns;(5) misleading a client by informing him that products require only a single
APER 4.1.6GRP
3Deliberately failing to inform, without reasonable cause:(1) a customer; or(2) his APER employer5 (or its auditors or an actuary appointed by his APER employer5 under SUP 4 (Actuaries)1); or1(3) the FCA or the PRA;66of the fact that their understanding of a material issue is incorrect, despite being aware of their misunderstanding, falls within APER 4.1.2G.
SYSC 21.1.2GRP
(1) A Chief Risk Officer should:(a) be accountable to the firm'sgoverning body for oversight of firm-wide risk management;(b) be fully independent of a firm's individual business units;(c) have sufficient authority, stature and resources for the effective execution of his responsibilities; (d) have unfettered access to any parts of the firm's business capable of having an impact on the firm's risk profile; (e) ensure that the data used by the firm to assess its risks are fit for
SYSC 21.1.3GRP
(1) The Chief Risk Officer should be accountable to a firm'sgoverning body.(2) The FCA9 recognises that in addition to the Chief Risk Officers primary accountability to the governing body, an executive reporting line will be necessary for operational purposes. Accordingly, to the extent necessary for effective operational management, the Chief Risk Officer should report into a very senior executive level in the firm. In practice, the FCA9 expects this will be to the chief executive,
SYSC 21.1.5GRP
(1) The FCA9 considers that, while the firm'sgoverning body is ultimately responsible for risk governance throughout the business, firms should consider establishing a governing body risk committee to provide focused support and advice on risk governance.(2) Where a firm has established a governing body risk committee, its responsibilities will typically include:(a) providing advice to the firm'sgoverning body on risk strategy, including the oversight of current risk exposures
FINMAR 2.6.1GRP
Pursuant to the Financial Services and Markets Act 2000 (Short Selling) Regulations 2012 (SI 2012/2554), the FCA will direct how notifications to use the market maker exemption or the authorised primary dealer exemption shall be made. Such directions will be published on the FCA website and listed in FINMAR 2 Annex 1 G.
FINMAR 2.6.2GRP
(1) If the FCA considers that a natural or legal person ('P') who has notified the FCA of his intention to use either the market maker exemption or the authorised primary dealer exemption does not satisfy the criteria to use the market maker exemption or the authorised primary dealer exemption, the FCA will send a letter to P setting out the reasons why it is minded to prohibit P from using the market maker exemption or the authorised primary dealer exemption.(2) P will be given
FINMAR 2.6.3GRP
If P is not satisfied with the FCA's decision to prohibit P's use of the market maker exemption or the authorised primary dealer exemption, P may seek a review of the decision. This will be conducted by a group of at least three senior FCA staff. None of the group conducting the review will have been connected with the earlier decision taken in respect of P's use of the market maker exemption or the authorised primary dealer exemption. The review may take place after the expiry
REC 4.1.2GRP
This chapter sets out the FCA's3 approach to the supervision of recognised bodies and contains guidance on: 3(1) the arrangements for investigating complaints about recognised bodies made under section 299 of the Act (Complaints about recognised bodies) (REC 4.4); (2) the FCA's3approach to the exercise of its powers under:3(a) (for RIEs)2section 296 of the Act (Appropriate regulator's3 power to give directions) 4or (for RAPs) regulation 3 of the RAP regulations5 to give directions
REC 4.1.3GRP
The FCA's3 general approach to supervision is intended to ensure that:3(1) the FCA3 has sufficient assurance that recognised bodies continue at all times to satisfy the recognised body requirements; and2132(2) the FCA's3 supervisory resources are allocated, and supervisory effort is applied, in ways which reflect the actual risks to the regulatory objectives. 3
REC 4.1.4GRP
In applying these principles of risk based supervision to the supervision of recognised bodies, the FCA3 has had particular regard to the special position of recognised bodies under the Act as well as to its general duties set out in section 2 of the Act (The FCA's 3general duties).33
DISP App 1.5.10GRP
23Firms proposing to offer arrangements involving some form of minimum underpinning or 'guarantee' should discuss their proposals with the FCA and1 HM Revenue and Customs1 at the earliest possible opportunity (see DISP App 1.5.8 G). The FCA will need to be satisfied that these proposals provide complainants with redress which is at least commensurate with the standard approaches contained in this appendix.
DISP App 1.5.11GRP
23One of the reasons for introducing the guidance in this appendix is to seek a reduction in the number of complaints which are referred to the Financial Ombudsman Service. If a firm writes to the complainant proposing terms for settlement which are in accordance with this appendix, the letter may include a statement that the calculation of loss and redress accords with the FCAguidance, but should not imply that this extends to the assessment of whether or not the complaint should
DISP App 1.5.12GRP
23A statement under DISP App 1.5.11 G should not give the impression that the proposed terms of settlement have been expressly endorsed by either the FCA or the Financial Ombudsman Service.
DISP App 1.5.15GRP
23'Relevant benefits' are those benefits that fall outside what is required in order that policyholders' reasonable expectations at that point of sale can be fulfilled. (The phrase 'policyholders' reasonable expectations' has technically been superseded. However, the concept now resides within the obligations imposed upon firms by FCA Principle 6 ('...a firm must pay due regard to the interests of its customers and treat them fairly....') Additionally, most of these benefits would
LR 9.6.1RRP
A listed company must forward to the FCA for publication through the document viewing facility, two copies of all circulars, notices, reports or other documents to which the listingrules apply at the same time as they are issued.
LR 9.6.2RRP
A listed company must forward to the FCA, for publication through the document viewing facility, two copies of all resolutions passed by the listed company other than resolutions concerning ordinary business at an annual general meeting as soon as possible after the relevant general meeting.
LR 9.6.3RRP
(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.
LR 9.6.19RRP
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.
SUP 16.7A.2GRP
The purpose of this section is to require firms to submit their annual report and accounts, and the annual report and accounts of their mixed activity holding companies, to the FCA online through the appropriate systems accessible from the FCA's website. This information is used in the monitoring of firms both individually and collectively.
SUP 16.7A.3RRP

A firm in the RAG in column (1) and which is a type of firm in column (2) must submit its annual report and accounts to the FCA annually on a single entity basis.

(1)

(2)

RAG

Firm type

1

UK bank

Dormant account fund operator

A non-UK bank5.

2.2

The Society

3

IFPRU investment firms

BIPRU firms

Exempt CAD firms subject to IPRU (INV) Chapter 13

All other firms subject to the following chapters in IPRU(INV):

(1)

Chapter 3

(2)

Chapter 5

(3)

Chapter 9

4

IFPRU investment firms

BIPRU firms

Exempt CAD firms subject to IPRU (INV) Chapter 13

Collective portfolio management firm

All other firms subject to the following chapters in IPRU(INV):

(1)

Chapter 3

(2)

Chapter 5

(3)

Chapter 9

(5)

Chapter 12

5

All firms

6

All firms other than firms subject to IPRU (INV) Chapter 13 that are not exempt CAD firms3

7

IFPRU investment firms

BIPRU firms

Exempt CAD firms subject to IPRU (INV) Chapter 13

8

All firms other than firms subject to IPRU (INV) Chapter 13 that are not exempt CAD firms3
SUP 16.7A.5RRP

A firm in the RAG group in column (1), which is a type of firm in column (2) and whose ultimate parent is a mixed activity holding company must:

  1. (1)

    submit the annual report and accounts of the mixed activity holding company to the FCA annually; and

  2. (2)

    notify the FCA that it is covered by this reporting requirement by email using the email address specified in SUP 16.3.10 G (3), by its accounting reference date.

    (1)

    (2)

    RAG

    Firm type

    1

    UK bank

    3

    IFPRU investment firm

    BIPRU firm

    4

    IFPRU investment firm

    BIPRU firm

    7

    IFPRU investment firm

    BIPRU firm
SUP 16.7A.7RRP
Firms must submit the annual report and accounts to the FCA online through the appropriate systems accessible from the FCA's website, using the form specified in SUP 16 Annex 1A.
REC 2.16A.1UKRP

Schedule to the Recognition Requirements Regulations, Paragraph 9A-9H3

1(1)

[A UK RIE] operating a multilateral trading facility or an organised trading facility3 must also operate a regulated market3.

(2)

An exchange5 operating a multilateral trading facility or an organised trading facility3 must comply with those requirements of-

(a)

any provisions of the law of the United Kingdom relied on by the United Kingdom before IP completion day to implement Chapter 1 of Title II of the markets in financial instruments directive—5

3

(i)

as they have effect on 1 December 20216, in the case of rules made by the FCA under the Act; and5

(ii)

as amended from time to time, in all other cases;5

(b)

any EU regulation originally made under Chapter 1 of the markets in financial instruments directive which is retained direct EU legislation, or any subordinate legislation (within the meaning of the Interpretation Act 1978) made under those provisions on or after IP completion day;5

3

which are applicable to a market operator35operating such a facility.

(3)

The requirements of this paragraph do not apply for the purposes of section 292(3)(a) of the Act (requirements for overseas investment exchanges and overseas clearing houses).

(4)3

A [UK RIE] operating a multilateral trading facility or organised trading facility must provide the FCA with a detailed description of -

(a)

the functioning of the multilateral trading facility or organised trading facility;

(b)

any links to another trading venue owned by the same [UK RIE] or to a systematic internaliser owned by the same exchange; and

(c)

a list of the facility’s members, participants and users.

[Note:MiFID ITS 19 prescribes the content and format of the description of the functioning of a MTF or OTF to be provided to the FCA]3

(5)3

Any multilateral trading facility or an organised trading facility operated by the [UK RIE] must have at least three materially active members or users who each have the opportunity to interact with all the others in respect of price formation.

Paragraph 9B – Specific requirements for multilateral trading facilities: execution of orders3

(1)3

A [UK RIE] must have non-discretionary rules for the execution of orders on a multilateral trading facility operated by it.

(2)3

A [UK RIE] must not on a multilateral trading facility operated by it -

(a)

execute any client orders against its proprietary capital; or

(b)

engage in matched principal trading.

Paragraph 9C – Specific requirements for multilateral trading facilities: access to a facility3

The rules of the [UK RIE] about access to, or membership of, a multilateral trading facility regulated market operated by it must permit the [UK RIE] to give access to or admit to membership to (as the case may be) only -3

(a)

an investment firm which has permission under Part 4A of the Act to carry on a regulated activity which is an investment service or activity5;

(b)

a qualifying credit institution that has Part 4A permission to carry on the regulated activity of accepting deposits.5

(c)

a person who –

(i)

is of sufficient good repute;

(ii)

has a sufficient level of trading ability, and competence and experience;

(iii)

where applicable, has adequate organisational arrangements; and

(iv)

has sufficient resources for the role it is to perform, taking account of the financial arrangements the [UK RIE] has established in order to guarantee the adequate settlement transactions.

Paragraph 9D – Specific requirements for multilateral trading facilities: disclosure3

(1)3

The rules of the [UK RIE] must provide that where it, without obtaining the consent of the issuer, admits to trading on a multilateral trading facility operated by it a transferable security which has been admitted to trading on a regulated market, the [UK RIE] may not require the issuer of that security to demonstrate compliance with the disclosure obligations.

(2)3

The [UK RIE] must maintain arrangements to provide sufficient publicly available information (or satisfy itself that sufficient information is publicly available) to enable users of a multilateral trading facility operated by it to form investment judgements, taking into account both the nature of the users and the types of instruments traded.

(3)3

In this paragraph, “the disclosure obligations” has the same meaning as in paragraph 9ZB.

Paragraph 9E – SME growth markets3

(1)3

A [UK RIE] operating an SME growth market5 (an “exchange-operated SME growth market”) must comply with rules made by the FCA for the purposes of this paragraph as they have effect on IP completion day5.

[Note:REC 2.16A.1D]4

(2)3

An exchange-operated SME growth market must not admit to trading a financial instrument which is already admitted to trading on another SME growth market unless the issuer of the instrument has been informed of the proposed admission to trading and has not objected.

(3)3

Where an exchange-operated SME growth market exchange admits a financial instrument to trading in the circumstances of paragraph (2), that exchange-operated SME growth market may not require the issuer of the financial instrument to demonstrate compliance with -

(a)

any obligation relating to corporate governance, or

(b)

the disclosure obligations.

(4)3

In this paragraph, “the disclosure obligations” has the same meaning as in paragraph 9ZB.

Paragraph 9F – Specific requirements for organised trading facilities: execution of orders3

(1)3

[A UK RIE] operating an organised trading facility must -

(a)

execute orders on that facility on a discretionary basis in accordance with sub-paragraph (4);

(b)

not execute any client orders on that facility against its proprietary capital or the proprietary capital of any entity that is part of the same group or legal person as the [UK RIE] unless in accordance with sub-paragraph (2);

(c)

not operate a systematic internaliser within the same legal entity;

(d)

ensure that the organised trading facility does not connect with a systematic internaliser in a way which enables orders in an organised trading facility and orders or quotes in a systematic internaliser to interact; and

(e)

ensure that the organised trading facility does not connect with another organised trading facility in a way which enables orders in different organised trading facilities to interact.

(2)3

A [UK RIE] may only engage in -

(a)

matched principal trading on an organised trading facility operated by it in respect of-

(i)

bonds,

(ii)

structured finance products,

(iii)

emission allowances,

(iv)

derivatives which have not been declared subject to the clearing obligation in accordance with Article 5 of the EMIR regulation,

where the client has consented to that; or

(b)

dealing on own account on an organised trading facility operated by it, otherwise than in accordance with sub-paragraph (a), in respect of sovereign debt instruments for which there is not a liquid market.

(3)3

If the [UK RIE] engages in matched principal trading in accordance with sub-paragraph (2)(a) it must establish arrangements to ensure compliance with the definition of matched principal trading5.

(4)3

The discretion which the [UK RIE] must exercise in executing a client order may only be the discretion mentioned in sub-paragraph (5) or in sub-paragraph (6) or both.

(5)3

The first discretion is whether to place or retract an order on the organised trading facility.

(6)3

The second discretion is whether to match a specific client order with other orders available on the organised trading facility at a given time, provided the exercise of such discretion is in compliance with specific instructions received from the client and in accordance with the [UK RIE’s] obligations under—5

(a)

section 11.2A of the Conduct of Business sourcebook;5

(b)

Articles 64 to 66 of Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive;5

(c)

[deleted]6

5

(d)

[deleted]6

5

(7)3

Where the organised trading facility crosses client orders the [UK RIE] may decide if, when and how much of two or more orders it wants to match within the system.

(8)3

Subject to the requirements of this paragraph, with regard to a system that arranges transactions in non-equities, the [UK RIE] may facilitate negotiation between clients so as to bring together two or more comparable potentially trading interests in a transaction.

(9)3

The [UK RIE] must comply with rules made by the FCA as they have effect on 1 December 20216 as to how Articles 24, 25, 27 and 28 of the markets in financial instruments directive apply to its operation of an organised trading facility.

5

(10)3

Nothing in this paragraph prevents a [UK RIE] from engaging an investment firm to carry out market making on an independent basis on an organised trading facility operated by the [UK RIE]provided the investment firm does not have close links with the [UK RIE].

(11)3

In this paragraph -

“close links” has the meaning given in Article 2(1)(21) of the markets in financial instruments regulation;5

“investment firm” has the meaning given in Article 2(1A) of the markets in financial instruments regulation;5

“non-equities” means bonds, structured finance products, emissions allowances and derivatives traded on a trading venue to which Article 8(1) of the markets in financial instrument regulation applies.

Paragraph 9G – Specific requirements for organised trading facilities: disclosure3

(1)3

The rules of the [UK RIE] must provide that where it, without obtaining the consent of the issuer, admits to trading on an organised trading facility operated by it a transferable security which has been admitted to trading on a regulated market, the [UK RIE] may not require the issuer of that security to demonstrate compliance with the disclosure obligations.

(2)3

The [UK RIE] must maintain arrangements to provide sufficient publicly available information (or satisfy itself that sufficient information is publicly available) to enable users of the organised trading facility operated by it to form investment judgements, taking into account both the nature of the users and the types of instruments traded.

(3)3

In this paragraph, “the disclosure obligations” has the same meaning as in paragraph 9ZB.

Paragraph 9H – Specific requirements for organised trading facilities: FCA request for information3

(1)3

A [UK RIE] must, when requested to do so, provide the FCA with a detailed explanation in respect of an organised trading facility operated by it, or such a facility it proposes to operate, of -

(a)

why the organised trading facility does not correspond to and cannot operate as a multilateral trading facility, a regulated market or a systematic internaliser;

(b)

how discretion will exercised in executing client orders, and in particular when an order to the organized trading facility may be retracted and when and how two or more client orders will be matched within the facility; and

(c)

its use of matched principal trading.

(2)3

Any information required under sub-paragraph (1) must be provided to the FCA in the manner which it considers appropriate.
REC 2.16A.1AGRP
3In determining whether there are satisfactory arrangements for securing the timely discharge of the rights and liabilities of the parties to transactions effected on its multilateral trading facility, the FCA may have regard to:(1) (in relation to transactions in derivatives which are to be cleared pursuant to article 4 of EMIR or otherwise agreed by the relevant transacting parties to be cleared) the UK recognised body’s ability to demonstrate that its multilateral trading facility
REC 2.16A.1CRRP
3In paragraphs 9H(1) and (2) of the Schedule to the Recognition Requirements Regulations where the UK RIE must provide information in respect of an organised trading facility operated by it, such information must be provided to the FCA in writing and delivered by any one of the methods set out in REC 3.2.3R.
REC 2.16A.1DRRP
4For the purposes of complying with the requirement set out in paragraph 9E of the Schedule to the Recognition Requirement Regulations (SME Growth Markets), the rules set out by the FCA in MAR 5.10 (Operation of an SME growth market) apply to a UK RIE operating a multilateral trading facility as an SME growth market, as though it was an investment firm. [Note: article 33 of MiFID]
REC 2.16A.2GRP
1In determining whether a UK RIE operating a multilateral trading facility (including an SME growth market) or organised trading facility)3 complies with this chapter3, the FCA will have regard to the compliance of the UK RIE with equivalent recognition requirements. A UK RIE operating such facilities should also have regard to the guidance set out in MAR 5 (Multilateral trading facilities (MTFs)) and MAR 5A (Organised trading facilities (OTFs))3. 22
REC 3.13.1GRP
(1) The purpose of REC 3.13 is to enable the FCA2to monitor any significant instances where UK recognised bodies outsource their functions to other persons (as permitted 1under Regulation 6 of the Recognition Requirements Regulations or, in relation to a RAP, under regulation 13 of the RAP regulations. See REC 2.2 and REC 2A.25).214141(2) The FCA2does not need to be notified of every instance of outsourcing by a UK recognised body, but only where an activity or activities which
REC 3.13.2RRP
Where a UK recognised body makes an offer or agrees to delegate any of its relevant functions to another person, it must immediately give the FCA2notice of that event, and:2(1) inform the FCA2of the reasons for that delegation or proposed delegation;2(2) inform the FCA2of the reasons why it is satisfied that it will continue to meet the recognition requirements or (for a RAP) RAP recognition requirements54following that delegation;21(3) where it makes such an offer by issuing
REC 3.13.3RRP
A UK recognised body must immediately give the FCA2notice, where it makes an offer or agrees to undertake any relevant function of another UK recognised body.2
SUP 15.12.1RRP
A firm must notify the FCA, using the form in SUP 15 Annex 8R, where:(a) in any 12-month period, it has upheld three complaints about matters relating to activities carried out by any one employee when acting as a retail investment adviser; or(b) it has upheld a complaint about matters relating to activities carried out by any one employee when acting as a retail investment adviser, where the redress paid exceeds £50,000.(2) A notification made under (1)(a) must be made by the
SUP 15.12.2RRP
For the purpose of SUP 15.12.1R:(1) when calculating the number of complaints in SUP 15.12.1R(1)(a), the firm should exclude complaints previously notified to the FCA under this rule;(2) redress, under SUP 15.12.1R(1)(b), should be interpreted to include an amount paid, or cost borne, by the firm, where a cash value can be readily identified, and should include:(a) amounts paid for distress and inconvenience;(b) a free transfer out to another provider for which a transfer would
SUP 15.12.3RRP
Notifications under SUP 15.12.1R must be made electronically using a method of notification prescribed by the FCA.
SUP App 3.6.7GRP
In respect of banking services, the European Commission believes that "...to determine where the activity was carried on, the place of provision of what may be termed the 'characteristic performance' of the service i.e. the essential supply for which payment is due, must be determined" (Commission interpretative communication: Freedom to provide services and the interests of the general good in the Second Banking Directive (97/C 209/04)). In the view of the FCA5, this requires
SUP App 3.6.8GRP
The FCA is5 of the opinion that UK firms that are credit institutions and MiFID investment firms2 should apply the 'characteristic performance' test (as referred to in SUP App 3.6.7 G) when considering whether prior notification is required for services business. Firms should note that other EEA States may take a different view. Some EEA States may apply a solicitation test. This is a test as to whether it is the consumer or the provider that initiates the business relations
SUP App 3.6.15GRP
The FCA considers5 that, in order to comply with Principle 3:Management and control (see PRIN 2.1.1 R), a firm should have appropriate procedures to monitor the nature of the services provided to its customers. Where a UK firm has non-resident customers but has not notified the EEA State in which the customers are resident that it wishes to exercise its freedom to provide services, the FCA5 would expect the firm's systems to include appropriate controls. Such controls would
SUP App 3.6.27GRP
Firms should note that, in circumstances where the FCA5 take the view that a notification would not be required, other EEA States may take a different view.66
SUP 7.3.1GRP
The FCA5 expects to maintain a close working relationship with certain types of firm and expects that routine supervisory matters arising can be resolved during the normal course of this relationship by, for example, issuing individual guidance where appropriate (see SUP 9.3). However, where the FCA deems it appropriate, it will exercise its own-initiative powers:55(1) in circumstances where it considers it appropriate for the firm to be subject to a formal requirement, breach
SUP 7.3.2GRP
The FCA 5 may also5 seek to exercise its own-initiative powers in certain situations,5 including the following:55(1) If the FCA5 determines that a firm's management, business or internal controls give rise to material risks that are not fully addressed by existing requirements, the FCA5may seek to use its own-initiative powers.555(2) If a firm becomes or is to become involved with new products or selling practices which present risks not adequately addressed by existing requirements,
SUP 7.3.3GRP
Pursuant to sections 55L, 55N, 55O, 55P and 55Q of the Act, within the scope of its functions and powers, the FCA5may seek to impose requirements which include but are not restricted to:55(1) requiring a firm to submit regular reports covering, for example, trading results, management accounts, customer complaints, connected party transactions;(2) where appropriate, 5requiring a firm to maintain prudential limits, for example on large exposures, foreign currency exposures or liquidity
SUP 7.3.4GRP
The FCA5 will seek to give a firm reasonable notice of an intent to vary its permission or impose a requirement5 and to agree with the firm an appropriate timescale. However, if the FCA5 considers that a delay may create a risk to any of the FCA's statutory objectives5,3 the FCA5 may need to act immediately using its powers under section 55J and/or 55L5 of the Act5 with immediate effect.5535555
FEES 2.3.1RRP
If it appears to the FCA or the FSCS (in relation to any FSCS levy only) that in the exceptional circumstances of a particular case, the payment of any fee, FSCS levy, FOS levy, 9SFGB levy, TPR SFGB levy or TPR DA levy7 would be inequitable, the FCA or the FSCS as relevant, may (unless FEES 2.3.2BR applies) reduce or remit all or part of the fee or levy in question which would otherwise be payable.541041023410233685410410234101
FEES 2.3.2RRP
If it appears to the FCA or the FSCS (in relation to any FSCS levy only) that in the exceptional circumstances of a particular case to which FEES 2.3.1R does not apply, the retention by the FCA, the FSCS, or the CFEB, as relevant, of a fee, FSCS levy, FOS levy, CFEB levy, SFGB levy, TPR SFGB levy or TPR DA levy7 which has been paid would be inequitable, the FCA, the FSCS or the CFEB, may (unless FEES 2.3.2BR applies) refund all or part of that fee or levy.54104102341052341033
FEES 2.3.2BRRP
1The FCA5or the FSCS2may not consider a claim under FEES 2.3.1 R and/or FEES 2.3.2 R to reduce, remit or refund any overpaid amounts paid by a fee or levy2 payer in respect of a particular period, due to a mistake of fact or law by the fee or levy2 payer, if the claim is made by the fee or levy2 payer more than 2 years after the beginning of the period to which the overpayment relates.
COLL 7.4.1GRP
(1) This section deals with the circumstances and manner in which an AUT is to be wound up or a sub-fund of an AUT is to be terminated. Under section 256 of the Act (Requests for revocation of authorisation order), the manager or trustee of an AUT may request the FCA to revoke the authorisation order in respect of that AUT. Section 257 of the Act (Directions) gives the FCA the power to make certain directions.(2) The termination of a sub-fund under this section will be subject
COLL 7.4.2AGRP

1This table belongs to COLL 7.4.1 G (4) (Explanation of COLL 7.4)

Summary of the main steps in winding up an AUT or terminating a sub-fund under FCArules

Notes: N = Notice to be given to the FCA under section 251 of the Act.

E = commencement of winding up or termination

W/U = winding up

FAP = final accounting period (COLL 7.4.5 R (4))

Step number

Explanation

When

COLLrule (unless stated otherwise)

1

Receive FCA approval

N + one month

On receipt of notice from the FCA

Section 251 of the Act

2

Normal business ceases; notify unitholders

E

7.4.3R

3

Trustee to realise and distribute proceeds

ASAP after E

7.4.4R(1) to (5)

4

Send annual long report of manager and trustee to the FCA

Within 4 months of FAP

7.4.5R(5)

5

Request FCA to revoke relevant authorisation order

On completion of W/U

7.4.4R(6)
COLL 7.4.4RRP
(1) Where COLL 7.4.3 R (2) (f) applies, the trustee must cancel all units in issue and1 wind up the AUT or terminate the sub-fund in accordance with the approved scheme of arrangement.(2) In any other case falling within COLL 7.4.3 R:(a) once the AUT falls to be wound up or sub-fund terminated, the trustee must realise the scheme property;(b) after paying out or retaining adequate provision for all liabilities payable and for the costs of the winding up or termination, the trustee
COLL 7.4.5RRP
(1) [deleted]21111(1A) [deleted]21(2) For any annual accounting period or half-yearly accounting period which begins after commencement of the winding up or termination2, a copy of the long report must be supplied free of charge to any unitholder upon request.1(2A) The2manager must ensure that it keeps unitholders appropriately informed about the winding up or termination, including its likely duration.1(2B) The manager must send a copy of the information required by COLL 7.4.5
IFPRU 11.7.2RRP
A firm or qualifying parent undertaking must notify the FCA immediately if its management body considers that any of the following have occurred:(1) the assets of the firm or qualifying parent undertaking have become less than its liabilities; or(2) the firm or qualifying parent undertaking is unable to pay its debts or other liabilities as they fall due; or(3) there are objective reasons to support a determination that (1) or (2) will occur in the near future; or(4) extraordinary
IFPRU 11.7.3RRP
A firm must also notify the FCA immediately if its management body considers that: (1) the firm is failing to satisfy any of the threshold conditions, including due to the firm having incurred, or being likely to incur, losses that will deplete all, or a significant amount of, its own funds; or(2) there are objective elements to support a determination that the firm will fail to satisfy any of the threshold conditions in the near future.[Note: article 81(1) of RRD]
IFPRU 11.7.4RRP
A firm or qualifying parent undertaking must notify the FCA by sending an e-mail to its usual supervisory contact.