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APER 1.1A 3Application

Who?

APER 1.1A.1R
APER 1.1A.1AG
  1. (1)

    1APER does not apply to FCA-approved persons or PRA-approved persons of relevant authorised persons2, Solvency II firms or small non-directive insurers2. COCON applies instead. For the purposes of APER (and SYSC, SUP 10A, COCON and DEPP) a large non-directive insurer is treated as and included in the Glossary definition of a Solvency II firm2.

  2. (2)

    However, APER applies to approved persons approved to perform a controlled function under SUP 10A.1.15R to SUP 10A.1.16BR (appointed representatives) even if the appointed representative's principal is a relevant authorised person or Solvency II firm.

What?

APER 1.1A.2R
  1. (1)

    1APER applies to the performance by an approved person of:

    1. (a)

      FCA controlled functions (whether or not approval has been sought and granted); and

    2. (b)

      PRA controlled functions (whether or not approval has been sought and granted);

    in relation to the authorised persons in relation to which that person is an approved person.

  2. (2)

    APER also applies to the performance by an approved person of any other functions in relation to the carrying on of a regulated activity by the authorised persons referred to in (1).

APER 1.1A.3G

The functions described in APER 1.1A.2R 1are called accountable functions.

APER 1.1A.4G

The relevance of MiFID to the Statements of Principle will depend on the extent to which the corresponding requirement imposed on firms under MiFID is reserved to a Home State regulator or has been disapplied under MiFID (see APER 2.1A.2R and FIT 1.2.4AG1. See also COBS 1 Annex 1, Part 2, 1.1R (EEA territorial scope rule: compatibility with European law)).

Where?

APER 1.1A.5G

The territorial scope of the approved persons regime and its application to incoming EEA firms is set out in SUP 10A.1 (see SUP 10A.1.11R and SUP 10A.1.13R).

Coverage of APER

APER 1.1A.6G

APER 1.1A.7 G gives examples of the effect of APER 1.1A.1R and APER 1.1A.2R1. The first column says whether the example involves an FCA-approved person and the second column says whether the example involves a PRA-approved person. So for example if there is a "Yes" in both columns that means that the example concerns a person who has been approved both by the FCA and by the PRA. The third column explains what functions APER covers in the scenario set out in the first two columns. The table is divided between cases in which the person performs the controlled function for an FCA-authorised person and ones where the person does so for a PRA-authorised person.

APER 1.1A.7G

Table: Examples of what activities APER covers

FCA approved

PRA approved

Coverage of APER

FCA-authorised person

(1) Yes, in relation to firm A

Not applicable

Applies to the FCA controlled function. Also applies to any other function performed for firm A in relation to the carrying on by firm A of a regulated activity even if it is not a controlled function.

(2) Yes, in relation to firm A. No, in relation to firm B,

Not applicable

In relation to firm A, the answer is the same as for scenario (1). However, APER does not apply to any function that the approved person carries on in relation to firm B even if that function relates to regulated activities carried out by firm B. However, if the function that he performs in relation to firm B is a controlled function the approved person and firm B may be subject to legal sanctions (see SUP 10A.13.1 G to SUP 10A.13.2 G).

PRA-authorised person that is not a relevant authorised person, or a Solvency II firm or a small non-directive insurer.2

1

(3) Yes, in relation to firm A

No

The answer is the same as for scenario (1).

(4) No

Yes, in relation to firm A

Applies to PRA controlled function. Also applies to any other function performed for firm A in relation to the carrying on by firm A of a regulated activity even if it is not a controlled function.

(5) Yes, in relation to firm A

Yes, in relation to firm A

Applies to FCA controlled function and PRA controlled function. Also applies to any other function performed for firm A in relation to the carrying on by firm A of a regulated activity even if it is not a controlled function.

(6) Yes, in relation to firm A. No, in relation to firm B,

Yes, in relation to firm A. No, in relation to firm B,

In relation to firm A, the answer is the same as for scenario (5). However, APER does not apply to any function that the approved person carries on in relation to firm B even if that function relates to regulated activities carried out by firm B. However, if the function that he performs in relation to firm B is a controlled function the approved person and firm B may be subject to legal sanctions (see SUP 10A.13.1 G to SUP 10A.13.21G).

1PRA-authorised person that is a relevant authorised person, a Solvency II firm or a small non-directive insurer2.

1(7) Yes, in relation to firm A

No

No. APER does not apply to approved persons of relevant authorised persons, Solvency II firms or small non-directive insurers2. COCON applies instead.

1(8) No

Yes, in relation to firm A

The answer is the same as for scenario (7).

1(9) Yes, in relation to firm A

Yes, in relation to firm A

The answer is the same as for scenario (7).

APER 1.1A.8G
  1. (1)

    A person may be an approved person in relation to more than one firm. When that is the case, APER applies in relation to all those firms.1

  2. (2)

    APER does not apply if the firm is a relevant authorised person or a Solvency II firm, except for approved persons of an appointed representative of a relevant authorised person, a Solvency II firm or a small non-directive insurer2.1

  3. (3)

    If a person is an approved person of a firm (A) that is not a relevant authorised person, a Solvency II firm or a small non-directive insurer2 and also of another firm (B) that is either a relevant authorised person, a Solvency II firm or a small non-directive insurer2, the result is: 1

    1. (a)

      APER applies to the approved person in relation to firm A; and1

    2. (b)

      COCON applies to the approved person in relation to firm B.1

APER 1.1A.9G
  1. (1)

    APER 1.1A1 refers to the authorised person in relation to which a person is an approved person. It also refers to an approved person of a firm.1

  2. (2)

    Under section 59 of the Act (Approval for particular arrangements) there are two kinds of approved person.

  3. (3)

    Section 59(1) of the Act describes the first. It covers a person who performs a controlled function under an arrangement entered into by an authorised person ("A"). In this case, APER 1.1A1 refers to A.

  4. (4)

    Section 59(2) of the Act describes the second. It covers a person who performs a controlled function under an arrangement entered into by a contractor ("B") of an authorised person ("A"). In this case, APER 1.1A1 refers to A (and not B).

APER 1.1A.10E

1[deleted]

APER 1.1A.11G

1[deleted]