Related provisions for IPRU-INV 4.1.3

PERG 5.7.8G01/01/2021

A 'relevant insurer' for the purposes of article 39B means:(1) an authorised person who has permission for effectingand carrying out contracts of insurance; or(2) a member of the Society of Lloyd's or the members of the Society of Lloyd's taken together; or(3) [deleted]2(4) a reinsurer, being a person whose main business consists of accepting risks ceded by a person falling under (1) or (2)2 or a person who is established outside the United Kingdom and who carries on the activity

COND 2.5.6G29/07/2022

Examples of the kind of particular considerations to which the FCA may have regard when assessing whether a firm will satisfy, and continue to satisfy, this threshold condition include, but are not limited to, whether:1515(1) the firm has been open and co-operative in all its dealings with the FCA15and any other regulatory body (see Principle 11 (Relations with regulators)) and is ready, willing and organised to comply with the requirements and standards under the regulatory system

SUP 4.1.2G07/03/2016

This chapter applies to long-term insurers (including friendly societies) and other friendly societies and to the Society of Lloyd's and managing agents at Lloyd's2. This chapter does not apply to actuaries advising the auditors of long-term insurers5 as they are not appointed to act on behalf of the firm.32

ICOBS 1.1.4G06/01/2008

Guidance on the application provisions is in ICOBS 1 Annex 1 (Part 4).

FEES 4.1.5G01/04/2013

The Society of Lloyd's, which has permission, has its own fee block.18

GEN 4.5.6AG01/04/2013

4As well as potentially breaching the requirements in this section, misleading statements by a firm may involve a breach of Principle 7 (Communications with clients) or section Part 7 (Offences relating to financial services) of the Financial Services Act 2012, as well as giving rise to private law actions for misrepresentation.

GEN 6.1.6R01/01/2004

The Society, managing agents and members' agents must not cause or permit any member, in the conduct of his insurance business at Lloyd's, to enter into, arrange, claim on or make a payment under a contract of insurance that is intended to have, or has or would have, the effect of indemnifying any person against all or part of a financial penalty.

SYSC 1.4.2R31/03/2023

A contravention of a rule in SYSC 11 to 2SYSC 14, SYSC 18 to10SYSC 21,7SYSC 22.8.1R, SYSC 22.9.1R or SYSC 23 to 9SYSC 28A12 does not give rise to a right of action by a private person under section 138D of the Act (and each of those rules is specified under section 138D(3) of the Act as a provision giving rise to no such right of action). 344378

SYSC 1.1A.1G31/03/2023

1The application of this sourcebook is summarised at a high level in the following table. The detailed application is cut back in SYSC 1 Annex 1 and in the text of each chapter.

Type of firm	Applicable chapters
Insurer, UK ISPV 13	Chapters 2, 3, 12 5 to 18, 19F.2,14 213, 2211, 23, 24, 25, 26, 2715, 2814, 28A20 5
Managing agent	Chapters 2, 3, 11, 12, 15A,18 18, 19F.2,14 213, 2211, 23, 24, 25, 26, 2715, 2814, 28A20
Society	Chapters 2, 3, 12, 15A,18 18, 19F.2,14 213, 2211, 23, 24, 25, 26, 2715, 2814, 28A20
15Any other SMCR firm	Chapters 4 to 12, 15A,18 18, 19D, 19F, 19G19, 21, 22, 23, 24, 25, 26, 27, 28, 28A20
Every other firm	Chapters 4 to 12, 15A,18 18, 19D, 19F, 19G19, 216, 2211, 2814, 28A20 6 2 4 4 6 3 6 14

Firms that SYSC 19D applies to should also refer to the Remuneration part of the PRA Rulebook 13.

SUP 15.1.1G01/01/2021

This chapter applies to every firm except that:(1) only SUP 15.10 applies to2 an ICVC10; and3(2) SUP 15.3.22 D to SUP 15.3.25 D apply only to the Society.3

COND 1.3.5UK01/04/2013

1Paragraph 1A of Schedule 6 to the Act(1) "assets" includes contingent assets;"consolidated supervision" has the same meaning as in section 3M(a);"consumer" has the meaning given by section 425A(b);"financial crime" is to be read with section 1H(3)(c);"functions", in relation to either the FCA or the PRA, means the functions conferred on that regulator by or under this Act;"liabilities" includes contingent liabilities; "relevant directives" has the same meaning as in section 3M;

DISP 1.1.7R01/11/2007

This chapter applies to the Society, members of the Society and managing agents, subject to the Lloyd's complaint rules.

SUP 6.2.14G01/04/2013

A firm making an application in accordance with SUP 68 which requires any approval from the Society of Lloyd's should apply to the Society for this at the same time as applying to the relevant regulator.8 See SUP 6 Annex 4 for additional procedures.88

FEES 4.2.7KR01/04/2024

42Where the measure is not cumulative (e.g. the number of traders for fee-block A10), the firm must use the figure relating to the valuation date specified in FEES 4 Annex 1AR Part 563 (e.g. 31 December for A10)48. Table A sets out the reporting requirements for the key fee-blocks when full48 actual data is not available:

Table A: calculating tariff data for second and subsequent years of authorisation when full trading figures are not available

48

Fee-block	Tariff base	Calculation where trading data are not available
A1. Deposit acceptors	Average MELS for October - December	Use data available at 31 December or, if trading has not commenced by 31 December, use nil48.
A2. Home finance providers and administrators	Number of relevant contracts entered into or being administered in the twelve months up to 31 December	Apply the formula (A÷B) x 12 to arrive at an annualised figure.
A3. Insurers - general	Gross written premium for fees purposes (GWP) 43for the financial year ended in the calendar year ending 31 December and best estimate liabilities for fees purposes (BEL) 43 valued at the end of the financial year	GWP 43 – apply the formula (A÷B) x 12 to arrive at an annualised figure. BEL – use 43 data at valuation date or, if trading has not commenced by then, use nil48.
A4. Insurers - life	Gross written premium for fees purposes (GWP) 43 for the financial year ended in the calendar year ending 31 December and best estimate liabilities for fees purposes (BEL) 43 valued at the end of the financial year
A5. Managing agents at Lloyd’s	Active capacity in respect of the underwriting year at the beginning of the period to which the fee relates	Not applicable.
A6. The Society of Lloyd’s	Bespoke fee	Not applicable.
A7. Portfolio managers	Funds under management valued at 31 December	Use data as at 31 December or, if trading has not commenced by 31 December, use nil48.
A9. Managers and depositaries of investment funds, and operators of collective investment schemes or pension schemes	Annual gross income for the financial year ended in the calendar year ending 31 December	Apply the formula (A÷B) x 12 to arrive at an annualised figure.
A10. Firms dealing as principal	Number of traders as at 31 December	Use data as at 31 December or, if trading has not commenced by 31 December, use nil48.
A13. Advisors, arrangers, dealers or brokers	Annual income for the financial year ended in the calendar year ending 31 December	Apply the formula (A÷B) x 12 to arrive at the annualised figure
A14. Corporate finance advisers
A18. Home finance providers, advisers and arrangers
A19. General insurance distribution44
A21. Firms holding client money or assets, or both	The highest amount of client money and the highest amount of custody assets held over the 12 months ending 31 December	The highest amount of client money and/or custody assets over the period between the date of authorisation and 31 December or, if trading has not started, use nil48.
56A.23	Annual income for the financial year ended in the calendar year ending 31 December	Apply the formula (A÷B) x 12 to arrive at the annualised figure.
B. Market operators,41 MTF operators and OTF operators41	Annual income for the financial year ended in the calendar year ending 31 December54	Apply the formula (A÷B) x 12 to arrive at the annualised figure.54
B. Service companies	Annual income for the financial year ended in the calendar year ending 31 December	Apply the formula (A÷B) x 12 to arrive at the annualised figure.
B. Regulated benchmark45 administrators	Annual income for the financial year ended in the calendar year ending 31 December39	Apply the formula (A÷B) x 12 to arrive at the annualised figure.39
B. Recognised investment exchanges	Annual income for the financial year ended in the calendar year ending 31 December39	Apply the formula (A÷B) x 12 to arrive at the annualised figure.39
B. Recognised auction platforms55 49	Flat fee55 49	Not applicable55 49
B. Recognised overseas investment exchanges	Flat fee	Not applicable.
CC1. Credit-related regulated activities with limited permission	Annual income for the financial year ended in the calendar year ending 31 December	Apply the formula (A÷B) x 12 to arrive at an annualised figure.
CC2. Credit related regulated activities
40	40	40
G.2 Payment services institutions – deposit acceptors	See A1 deposit acceptors
G.3. Large payment services institutions	Relevant income	Apply the formula (A÷B) x 12 to arrive at an annualised figure.
G.4 Small payment institutions	Flat fee	Not applicable.
G.5 Other payment institutions	Relevant income	Apply the formula (A÷B) x 12 to arrive at an annualised figure.
G.10 Large electronic money institutions	Average outstanding e-money over 12 months ending 31 December	Average over the period from authorisation to 31 December.
G.11 Small electronic money institutions	Flat fee	Not applicable.
G.15 Issuer of regulated covered bonds	Value as at 31 December	Not applicable.
G.20 Consumer buy-to-let (CBTL) lender	Flat fee	Not applicable.
G.21 CBTL adviser and arranger	Flat fee	Not applicable.

DISP 4.2.3R01/08/2022

The following rules and guidance apply to VJ participants as part of the standard terms, except where the context requires otherwise:(1) DISP 1 (Treating complainants4fairly), except:4(a) DISP 1.94(Complaints record rule);4(b) DISP 1.104(Complaints reporting rules);84(ba) DISP 1.10A (Complaints data publication rules); 98(bb) DISP 1.10B (Payment services and electronic money complaints reporting); and9(c) DISP 1.114(Lloyd's);4(d) DISP 1.1A (Complaints handling requirements for

SUP 3.1.2R01/08/2022

Applicable sections (see SUP 3.1.1 R)

This table and the provisions in SUP 3 should be read in conjunction with GEN 2.2.23 R to GEN 2.2.25 G. In particular, the PRA does not apply any of the provisions in SUP 3 in respect of FCA-authorised persons. SUP 3.10 and SUP 3.11 are applied by the FCA only.41

(1) Category of firm		(2) Sections applicable to the firm	(3) Sections applicable to its auditor
(1)	Authorised professional firm which is required by IPRU(INV) 2.1.2R to comply with chapters 3, 519 or 13 of IPRU(INV) and which has an auditor appointed under or as a result of a statutory provision other than in the Act 9 (Notes 1 and 6)23 23 19 23 23	SUP 3.1 - SUP 3.7, SUP 3.1123	SUP 3.1, SUP 3.2, SUP 3.8,19SUP 3.10 19
(2)	Authorised professional firm not within (1) to which the custody chapter or client money chapter applies22 17 22 23	SUP 3.1 - SUP 3.7, SUP 3.11	SUP 3.1, SUP 3.2, SUP 3.8, SUP 3.10
(3)	Authorised professional firm not within (1) or (2) which has an auditor appointed under or as a result of a statutory provision other than in the Act	SUP 3.1, SUP 3.2, SUP 3.7	SUP 3.1, SUP 3.2, SUP 3.8
(4)	Bank, building society or dormant asset fund operator 40 which in each case carries on designated investment business 21(Notes 2A and 6)23 21 23	SUP 3.1-SUP 3.7, SUP 3.1123	SUP 3.1, SUP 3.2, SUP 3.8, SUP 3.10
(5)	Bank, building society or a dormant asset fund operator 40 which in each case does not carry on designated investment business 21 (Note 2A) 21	SUP 3.1 - SUP 3.7	SUP 3.1, SUP 3.2, SUP 3.8
(5A)	Credit union	SUP 3.1 - SUP 3.7	SUP 3.1, SUP 3.2, SUP 3.824
27(5B)30	CASS debt management firm unless subject to a requirement imposed under section 55L of the Act stating that it must not hold client money or such a requirement to the same effect30	SUP 3.1 SUP 3.10 SUP 3.11	SUP 3.1 SUP 3.10
33(5C)	CASS 7 loan-based crowdfunding firm	SUP 3.1-3.7, SUP 3.11	SUP 3.1, SUP 3.2, SUP 3.8, SUP 3.10
36(5D)	A CASS 13 claims management firm	SUP 3.1- 3.7, 3.11	SUP 3.1, SUP 3.2, SUP 3.8, SUP 3.10
(6)	Insurer, the Society of Lloyd's, underwriting agent or members' adviser, UK ISPV 11 (Note 5)7	SUP 3.1 - SUP 3.7	SUP 3.1, SUP 3.2, SUP 3.8
(7)	Investment management firm,39 personal investment firm (other than a small personal investment firm)39, 15 securities and futures firm or collective portfolio management firm that is an external AIFM 28 which, in each case, has an auditor appointed under or as a result of a statutory provision other than in the Act 9(Notes 3 and 623)17 16 23 9 28 28 20 15 17 23	SUP 3.1 - SUP 3.7, SUP 3.1123	SUP 3.1, SUP 3.2, SUP 3.8,19SUP 3.10 19
9(7A)	Investment management firm 39, personal investment firm (other than a small personal investment firm 39),28 securities and futures firm 39 or collective portfolio management firm that is an external AIFM 28 not within (7) to which the custody chapter or client money chapter applies22 20 15 23 28 15 20 17 22	SUP 3.1 - SUP 3.7, SUP 3.1123	SUP 3.1, SUP 3.2, SUP 3.8, SUP 3.1025
32 25
9(7B)	Collective portfolio management firm that is a 28 UCITS firm 13or an internally managed AIF 28 (Note 6)23 13	SUP 3.1 - SUP 3.7, SUP 3.1123	SUP 3.1, SUP 3.2, SUP 3.8,19SUP 3.10 19
13(7C)	MiFID investment firm 38, which has an auditor appointed under or as a result of a statutory provision other than in the Act (Notes 3B and 6)23 20 20 23	SUP 3.1 - 3.7, SUP 3.1123	SUP 3.1, SUP 3.2, SUP 3.8, SUP 3.1014
17(7D)	Sole trader or partnership that is a MiFID investment firm 38 39(Notes 3C and 6)23 20 20 20 23	SUP 3.1 - SUP 3.7, SUP 3.1123	SUP 3.1, SUP 3.2, SUP 3.8, SUP 3.10
(8)	Small personal investment firm or service company which, in either case, has an auditor appointed under or as a result of a statutory provision other than in the Act	SUP 3.1, SUP 3.2, SUP 3.7	SUP 3.1, SUP 3.2, SUP 3.8
(9)8	Home finance provider 10 which has an auditor appointed under or as a result of a statutory provision other than in the Act 9 10	SUP 3.1 - SUP 3.78	SUP 3.1, SUP 3.2, SUP 3.88
(10)8	Insurance intermediary (other than an exempt insurance intermediary) to which the insurance client money chapter 17 (except for CASS 5.2 (Holding money as agent)) applies (see Note 4)8 17	SUP 3.1 - SUP 3.78, SUP 3.1123	SUP 3.1, SUP 3.2, SUP 3.8, SUP 3.108
(11)8	Exempt insurance intermediary and insurance intermediary not subject to SUP 3.1.2 R(10) which has an auditor appointed under or as a result of a statutory provision other than in the Act	SUP 3.1, SUP 3.2, SUP 3.78	SUP 3.1, SUP 3.2, SUP 3.88
(12)8	Home finance intermediary 10 or home finance administrator 10 which has an auditor appointed under or as a result of a statutory provision other than in the Act. 10 10	SUP 3.1, SUP 3.2, SUP 3.78	SUP 3.1, SUP 3.2, SUP 3.88
Note 1 = This chapter applies to an authorised professional firm in row (1) (and its auditor) as if the firm were of the relevant type in the right-hand column of IPRU(INV) 2.1.4R.
Note 2 [deleted]23 17 17 23
Note 2A = For this purpose, designated investment business does not include either or both: (a) dealing which falls within the exclusion in article 15 of the Regulated Activities Order (Absence of holding out etc) (or agreeing to do so); and (b) dealing in investments as principal (or agreeing to do so): (i) by a firm whose permission to deal in investments as principal is subject to a limitation to the effect that the firm, in carrying on this regulated activity, is limited to entering into transactions in a manner which, if the firm was an unauthorised person, would come within article 16 of the Regulated Activities Order (Dealing in contractually based investments); and (ii) in a manner which comes within that limitation; having regard to article 4(4) of the Regulated Activities Order (Specified activities: general23). 18
Note 3 = This note applies in relation to an oil market participant to which IPRU(INV) 3 does not apply and in relation to an energy market participant to which IPRU(INV) 3 does not apply. In SUP 3: (a) only SUP 3.1, SUP 3.2 and SUP 3.7 are applicable to such a firm; and (b) only SUP 3.1, SUP 3.2 and SUP 3.8 are applicable to its auditor; and, in each case, only if it has an auditor appointed under or as a result of a statutory provision other than in the Act.
17Note 3A [deleted]23 23
20Note 3B = MiFID investment firms 38 include firms that are eligible to be MiFID optional exemption firms but have chosen not to exercise the article 3 exemption. However, such firms may still benefit from the audit exemption for small companies in the Companies Act legislation39. 31
17Note 3C20 = A sole trader or a partnership that is a MiFID investment firm 38 to which the custody chapter 22 or client money chapter applies22 20 must have its annual accounts audited. 20 20 20 22 22
Note 4 = The client money audit requirement in SUP 3.1.2 R(10) therefore applies to all insurance intermediaries except:8 • those which do not hold client money or other client assets in relation to insurance distribution activities 34; or 8 • those which only hold up to, but not exceeding, £30,000 of client money under a statutory trust arising under CASS 5.3.8 Insurance intermediaries which, in relation to insurance distribution activities 34, hold no more than that amount of client money only on a statutory trust are exempt insurance intermediaries.8
Note (5) = In row (6):7
(a)7	SUP 3.1 - SUP 3.7 applies to a managing agent in respect of its own business and in respect of the insurance business of each syndicate which it manages; and7
(b)7	SUP 3.1, SUP 3.2 and SUP 3.8 apply to the auditors of a managing agent and the auditors of the insurance business of each syndicate which the managing agent manages.1 2 3 4 5 6 7
23Note 6 = Where SUP 3.11 applies to a firm, and SUP 3.10 applies to the auditor of that firm, those sections apply whether or not that firm's permission prevents it from holding client money or custody assets and whether or not it holds client money or custody assets.A collective portfolio management firm that is an internally managed AIF is required to appoint an auditor under FUND 3.3.6R (2) (Annual report of an AIF) because the AIFM is also an AIF.28

Related provisions for IPRU-INV 4.1.3

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