Related provisions for SUP 10C.12.8
Application of different sections of SUP 16 (excluding49 SUP 16.13, SUP 16.15, 60SUP 16.22 and56 SUP 16.2656)50534266393927
(1) Section(s) |
(2) Categories of firm to which section applies |
(3) Applicable rules and guidance |
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All categories of firm except: |
Entire sections |
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(a) |
an ICVC; |
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(b) |
[deleted]51 |
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20 | |||||
49 | |||||
3 | 141439 | ||||
39 | |||||
(c) |
[deleted]51 |
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All categories of firm except: |
Entire sections |
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(-a) |
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(a) |
an ICVC; |
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(b) |
[deleted]51 |
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(c) |
[deleted]51 |
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(d) |
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(e)4 |
[deleted]4 |
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(f) |
a sole trader; |
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(g) |
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(h) |
[deleted]51 88 |
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(i)8 |
a firm with permission to carry on only retail investment activities;8 |
8 | |||
(ia)38 |
a firm with permission only to advise on P2P agreements (unless that activity is carried on exclusively with or for professional clients);38 |
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(j)8 |
a firm with permission to carry on only insurance distribution activity52, home finance mediation activity,16 or both;8 16 |
8 | |||
(ja)30 |
an FCA-authorised person with permission to carry on only credit-related regulated activity; |
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48(jb) |
a firm with permission to carry on only regulated claims management activities; |
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58(jc) |
a firm with permission to carry on only funeral plan distribution; |
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(k)8 |
a firm falling within a combination of (i), (ia), (j), (ja), (jb) and (jc)58. 30483830 |
8 | |||
46(l) |
a firm with permission to carry on only the regulated activity of administering a benchmark; |
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27 | |||||
2628 | |||||
28 | 28 | ||||
Depositary of an authorised fund41 |
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A firm subject to the requirement in SUP 16.7A.3 R or SUP 16.7A.5 R |
Sections as relevant |
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Insurer with permission to effect or carry out life policies, unless it is a non-directive friendly society3 |
Entire section |
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3Firm with permission to establish, operate or wind up a personal pension scheme or a stakeholder pension scheme14 14 |
Entire section3 |
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5 | 5 | 5 | |||
Entire section9 |
9
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(a)9 |
9 | ||||
(b)9 |
[deleted]51 2142 |
9 | |||
(c)9 |
[deleted]42 219 |
9 | |||
21(d) |
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(1) |
A firm, other than a managing agent, which is: |
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(a) |
a home finance provider; or |
Entire section |
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(b) |
an insurer; or |
Entire section |
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(c) |
the operator of a regulated collective investment scheme or an investment trust savings scheme; or |
Entire section |
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(d) |
a person who issues or manages the relevant assets of the issuer of a structured capital-at-risk product; or |
Entire section |
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(e) |
a firm with permission to enter into a regulated credit agreement as lender in respect of high-cost short-term credit or home credit loan agreements; or |
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(2) |
a firm in whom the rights and obligations of the lender under a regulated mortgage contract are vested. |
The provisions governing performance data reports in SUP 16.11 and SUP 16 Annex 21 |
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A firm undertaking the regulated activities as listed in SUP 16.12.4 R, unless exempted in SUP 16.12.1 G |
Sections as relevant to regulated activities as listed in SUP 16.12.4 R23 |
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A CASS large firm and a CASS medium firm |
Entire section29 |
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[deleted]60 34 |
5943 | ||||
A firm subject to the Money Laundering Regulations and within the scope of SUP 16.23.1R |
Entire Section |
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A firm undertaking the regulated activities in SUP 16.23A.1R51 |
Entire section |
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A firm with permission to effect or carry out contracts of insurance in relation to life and annuitycontracts of insurance45 to the extent that the firm and its business falls within the scope of SUP 16.24.1R. |
Entire Section |
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A firm with permission to carry on regulated claims management activities. |
Entire section |
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A firm which, in respect of general insurance contracts, is: |
Entire section |
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(a) |
an insurer; |
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(b) |
55a 55(i) TP firm which has temporary permission; or 55 (ii) a Gibraltar-based firm, treated as having permission, to effect contract of insurance 55 including those providing services from an establishment outside the UK with a customer in the UK55; |
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(c) |
a managing agent; or |
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(d) |
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to the extent that the firm and its business falls within the scope of SUP 16.27.7R. |
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A firm which, in respect of general insurance contracts, is: |
Entire section |
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(1) |
an insurer; |
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(2) |
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(3) |
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(4) |
a TP firm; or |
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(5) |
a Gibraltar-based firm that is not a TP firm. |
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to the extent that the firm and its business falls within the scope of SUP 16.28.8R. |
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26 | |||||
27Note 2 50The application of SUP 16.13 is set out under SUP 16.13.1 G;66 the application of SUP 16.15 is set out under SUP 16.15.1 G; the application of SUP 16.16 is set out SUP 16.16.1 R and SUP 16.16.2 R the application of SUP 16.17 is set out in SUP 16.17.3 R and SUP 16.17.4 R66; and the application of SUP 16.26 is set out in SUP 16.26.1R50. 4366 |
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29Note 3 50The application of SUP 16.18 for the types of AIFMs specified in SUP 16.1.1C G is set out in SUP 16.18.2 G. 43 |
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)) |
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Step number |
Explanation |
When |
|
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 |
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) |
Table: Examples of how the need for dual FCA and PRA approval in relation to PRA-authorised persons is reduced
1Example |
Whether FCA approval required |
Whether PRA approval required |
Comments |
(1) A is appointed as chief risk officer and an executive director. |
No. A4 is not treated as performing the executive director function.4 |
Yes |
Chief risk officer is a PRA-designated senior management function. A’s functions as a director will be included in the PRA-designated senior management function. To avoid the need for FCA approval, A’s appointment as director should not take effect before PRA approval for the chief risk officer role. |
(2) Same as example (1), except that A will take up the role as an executive director slightly later because 4approval is needed from the firm's shareholders or governing body. |
No |
Yes |
The answer for (1) applies. The arrangements in this section apply if the application to the PRA says that A will start to perform the potential FCA governing function around the time of the PRA approval as well as at that time. |
(3) Same as example (1) but the application to the PRA does not mention that it is also intended that A is to be an executive director. |
Yes, to perform the executive director function.4 |
Yes |
SUP 10C.9.8R does not apply if the application for PRA approval does not say that A will also be performing what would otherwise be an FCA governing function. |
(4) A is to be appointed as chief executive and an executive director. |
No. A is not treated as performing the executive director function.4 |
Yes |
Being a chief executive is a PRA-designated senior management function. A’s functions as a director will be included in the PRA controlled function. |
(5) A is appointed as chief risk officer. Later, A is appointed as an executive director while carrying on as chief risk officer. |
Yes, when A takes up the director role. The executive director function4 applies. |
Yes, when A takes up the chief risk officer role. |
SUP 10C.9.8R does not apply because, when the firm applied for approval for A to perform the PRA chief risk officer designated senior management function, there was no plan for A also to perform the executive director function4. |
(6) A is appointed as an executive director. Later, A takes on the chief risk officer function and remains as an executive director. |
Yes, when A is appointed as director. The executive director function4 applies. |
Yes, when A takes up the chief risk officer role. |
When A is appointed as chief risk officer, A is still treated as carrying on the executive director function4. A retains the status of an FCA-approved person. |
(7) A is appointed as chief risk officer. A then stops performing that role and for a while does not perform any controlled function for that firm. Later, A is appointed as an executive director with the same firm. |
Yes, when A is appointed as an executive director. The executive director function4 applies. |
Yes, when A takes up the chief risk officer role. |
SUP 10C.9.8R does not apply because there is no current PRA approval when A is being appointed as a director. |
(8) A is appointed as an executive director and chief risk officer at the same time. Later, A gives up the role as chief risk officer but remains as an executive director. |
No, on A’s first appointment (see example (1)). But when A gives up the role as chief risk officer, FCA approval is needed to perform the executive director function4. Form E should be used. The application should state that it is being made as a result of A ceasing to perform a PRA-designated senior management function. Form A should be used if there have been changes in A’s fitness (SUP 10C.10.9D(4)) |
Yes, on A’s first appointment. |
When A stops being a chief risk officer, A stops performing a PRA-designated senior management function. However, being an executive director requires FCA approval. A does not have that approval because A did not need it when A was first appointed. The combined effect of SUP 10C.9.8R and the relevant PRA rules is that the firm has three months to secure approval by the FCA. During that interim period, A keeps the status of a PRA approved person performing the director element of the PRA chief risk designated senior management function - which is included in that function under relevant PRA rules. The relevant PRA rules say that, during this transitional period, A is still treated as performing the PRA chief risk designated senior management function and SUP 10C.9.8R says that, for as long as A is performing a PRA-designated senior management function, A does not perform the executive director function4. |
(9) A is appointed as the chief finance officer and an executive director at the same time. Later, A switches to being chief risk officer while remaining as an executive director. |
No |
Yes |
The arrangements in SUP 10C.9.8R continue to apply, even though A switches between PRA-designated senior management functions4 after the PRA's first approval. |
(10) A is appointed chief risk officer and an executive director. A goes on temporary sick leave. A takes up their old job when A4 comes back. |
No, neither on A’s first appointment nor when A comes back from sick leave. |
Yes, on A’s first appointment.6 |
SUP 10C.9.8R still applies on A’s return because A does not cease to have approval for6 the PRA's chief risk function or permanently cease to perform6 what would otherwise have been the executive director function4 just because A goes on temporary sick leave. |
(11) A is appointed to be chair4 of the governing body and chair4 of the nomination committee at the same time. |
No. A does not need approval to perform the chair of the nomination committee function. |
Yes, on first appointment. |
Being chair4 of the governing body is a PRA-designated senior management function. Therefore, the answer for example (1) applies. |
2(12) ‘A’ is to be appointed to perform the Head of Overseas Branch PRA-designated senior management function (SMF19) for a an overseas SMCR firm that is not an EEA SMCR firm.4 A is also an executive director of that firm’sUKbranch. |
No. A is not treated as performing the executive director function4. 3 |
Yes |
A’s functions as a director will be included in the PRA controlled function. |
Note 1: The relevant PRA rules can be found in the parts of the PRA Rulebook listed in SUP 10C.9.6G.4 |
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Note 2: Where one of the examples in this table includes someone being chief risk or finance officer or chair of the governing body, the example assumes that the firm is of a type for which that function is a PRA-designated senior management function.4 |