The rules in this chapter specify the descriptions of the functions controlled by the FCA under section 59 of the Act (Approval for special arrangements). The guidance in this chapter relates to the manner in which a firm should apply for FCA approval under section 59 of the Act and other procedures. The descriptions of the following FCA-controlled functions apply to a designated representative of a firm, except in relation to CBTL business or a nominated introducing representative, as they apply to a person authorized by the FCA:.
This chapter is amended in relation to an appointed representative who meets the conditions in (2) so that only one of the following FCA control functions:. The immediate purpose of■SUP 10A.3 to■SUP 10A.11 is to specify, under section 59 of the Act, descriptions of the FCA-controlled function listed in■SUP 10A.4.4 R. Sections 59(1) and (2) of the Act state that approval is required in respect of an FCA-controlled function carried out under an arrangement entered into by a firm, or its contractor (typically an appointed . representative) , in relation to a regulated activity.
This executive order prescribes the activities that are regulated activities within the meaning of the law. Each of the functions described in ■SUP 10A.4.4 R (the table of FCA controlled function) is an FCA controlled function.
Persons in Appointed Representatives
10A.5 Significant-influence functions
What are the FCA significant-influence functions?
Definition of FCA significant-influence function
Periods of less than 12 weeks
SUP 10A.5.6 Renables cover provided for example for holidays and emergencies and avoids the need for precautionary approval, for example by a deputy. However, as soon as it becomes apparent that the person will be carrying out a function under the supervision of the FCA for more than 12 weeks, the employer of the authorized person concerned must apply for approval.
10A.6 FCA governing functions
Introduction
Director function (CF1)
2) (1) does not apply if that parent undertaking or holding company has a Part 4A consent or is regulated by an EEA regulator. 3) (1) does not apply to the function falling under ■SUP 10A.6.13 R (non-executive director of the parent company or holding company). A director may be a body corporate and may accordingly require approval as an FCA approved person in the same way as a natural person may require approval.
Non-executive director function (CF2)
Guidance on persons in a parent undertaking or holding company exercising significant influence
Chief executive function (CF3)
Partner function (CF4)
Director of unincorporated association function (CF5)
10A.7 FCA required functions
Representatives
10A10A.8Systems and controls functions
10A.9 Significant management functions [deleted]
10A.10 Customer-dealing functions
The basic rule about the customer function
Dealing in" is used in Annex 2 to the Act for a general description of regulated activities, which are specified in Part II of the Regulation on Regulated Activities.
Customer function (CF 30)
10A.12 Procedures relating to FCA- approved persons
Forms B, C, D and E can only be submitted for an FCA Approved Person by the firm that submitted an FCA Approved Person's original application (the relevant Form A).
10A.13 Application for approval and withdrawing an application for
When to apply for approval
Failure to apply for approval
How to apply for approval
Who should make the application?
Processing an application
The FCA must either grant the application or, if it intends not to grant an application, issue a warning notice (see■DEPP 2). The FCA will deal with cases faster than this when circumstances allow and will try to meet the standard response times published on the website and in its annual report. However, if an application is incomplete when received, or the FCA has knowledge that, or reason to believe, the information is incomplete, then the processing time will be longer than the published standard.
If the forms are not completed fully and honestly, applications will be subject to investigation and the suitability of the FCA candidate to be approved to undertake an FCA controlled function will be questioned. A person who provides false or misleading information to the FCA may commit an offense and may be prosecuted under section 398 of the Act, regardless of the status of their application. If there is a delay in processing the application within the standard response time, the FCA will tell the firm making the application immediately.
Before making a decision to grant the application or issue a warning, the FCA may ask the company for further information about the FCA candidate. If it does this, the three-month period in which the FCA must assess a completed application will be: The responsibility lies with the applying firm to satisfy the FCA that the FCA candidate is suitable and competent to undertake the FCA to perform the controlled function for which the application is submitted.
For further guidance on criteria for determining whether an FCA candidate is fit and proper, see FIT.
Decisions on applications
If the FCA proposes to refuse an application in relation to one or more functions controlled by the FCA, it must follow procedures for issuing warning and decision notices to all interested parties.
Withdrawing an application for approval
10A.14 Changes to an FCA-approved person's details
Moving within a firm
Persons in the details of a designated FCA approved person. (a) the approved person has never previously been approved to perform for a firm: i) an FCA supervised function that has a significant influence function; or. (ii) a senior management position designated by the FCA; or (iii) a PRA-controlled function;
Moving between firms
Ceasing to perform an FCA controlled function
Persons in the details of a designated FCA approved person. ii) to the PRA using Form E of the PRA in accordance with the corresponding PRA requirements; Permanently ceasing to carry out an FCA supervised function means that that person is no longer authorized to carry out that function. Examples of where an FCA approved person has permanently ceased to carry out an FCA supervised function include moving within a company (see.
In cases of temporary absence (such as sick leave or parental leave) where the firm keeps the same role open to an FCA-approved person, the approval to perform the relevant FCA-supervised function will continue and the firm will not need to submit a Form C. SUP 10A.14.8HG for guidance on temporary appointments. As a result, an FCA-approved person who returns to perform the same FCA-controlled function after such a temporary absence will not need a new approval. If a firm knows that an FCA-approved person will be away for more than 12 weeks, that firm can notify the FCA before the end of the 12-week period.
■SUP 10A.14.8CG) the firm may decide to appoint another person to carry out this FCA-supervised function in the interim. Notice under ■SUP 10A.14.10 R may be given by telephone, e-mail or fax and must be given, where possible, within one business day after the company becomes aware of the information. If a firm does not submit Form C, it must notify the FCA in good time of the reason.
A firm is responsible for notifying the FCA if any FCA-approved person has permanently ceased to exercise an FCA-regulated function pursuant to an arrangement entered into by its appointed agent or former appointed agent, or where any any such FCA approved person temporarily absent. A firm may submit Form C or Form E to the FCA before the termination date. When a person terminates an arrangement under which they carry out an FCA-controlled function, they automatically cease to be an FCA-approved person in relation to that FCA-controlled function.
A person can only be an FCA approved person in relation to a specific FCA regulated function. Therefore, a person is not an FCA-approved person for any period between ceasing to carry out an FCA-controlled function (when they are not carrying out any other FCA-controlled function) and approval in respect of another FCA-controlled function.
Changes to an approved person's personal details
10A.15 References and accurate information
The need for complete and accurate information
10A.16 How to apply for approval and give notifications
10A10A.17Further questions [deleted]
10AFrequently asked questions [deleted]
10AApproved persons regime: summary of forms and their use for
10A[Not used]
10AForm A: Application to perform controlled functions under the
10AForm B: Notice to withdraw an application to perform controlled
10AForm C: Notice of ceasing to perform controlled functions (including
10AForm D: Notification of changes in personal information or application
10AForm E: Internal transfer of an approved person [deleted]
10AForm G: The Retail Investment Adviser Complaints Alerts Form
10AMiFID Article 4 APER Information Form [deleted]
