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APER 4.4 Statement of Principle 4

APER 4.4.1G

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APER 4.4.1AG

2The Statement of Principle 4 (see APER 2.1A.3 R1) is in the following terms: "An approved person must deal with the FCA, the PRA and other regulators in an open and cooperative way and must disclose appropriately any information of which the FCA or the PRA would reasonably expect notice."

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APER 4.4.2G

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APER 4.4.2AG

2For the purpose of this Statement of Principle, regulators in addition to the FCA and the PRA are those which have recognised jurisdiction in relation to regulated activities and a power to call for information from the approved person in connection with their 1accountable function or (in the case of an individual performing an accountable higher management function)1 in connection with the business for which they are1 responsible. This may include an exchange or an overseas regulator.

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APER 4.4.3G

1In the opinion of the FCA, conduct of the type described in APER 4.4.4G, APER 4.4.7G or APER 4.4.9G does not comply with Statement of Principle 4.

APER 4.4.4G

1Failing to report promptly in accordance with his firm's internal procedures (or if none exist direct to the regulator concerned), information which it would be reasonable to assume would be of material significance to the regulator concerned), whether in response to questions or otherwise, falls within APER 4.4.3 G. The regulator concerned is:

  1. (1)

    the FCA if it would be reasonable to assume that it would be of material significance to it;2

  2. (2)

    the PRA if it would be reasonable to assume that it would be of material significance to it;2

  3. (3)

    both the FCA and the PRA if it would be reasonable to assume that it would be of material significance to both of them.2

APER 4.4.5G

There is no duty on an approved person to report such information directly to the regulator concerned2 unless he is one of the approved persons responsible within the firm for reporting matters to the regulator concerned.2However, if an approved person takes steps to influence the decision so as not to report to the regulator concerned or acts in a way that is intended to obstruct the reporting of the information to the regulator concerned, then the FCA1 will, in respect of that information, view that individual1 as being one of those within the firm who has taken on responsibility for deciding whether to report that matter to the regulator concerned.

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APER 4.4.6G

1In determining whether or not an approved person's conduct under APER 4.4.4 G complies with Statement of Principle 4, the following are factors which, in the opinion of the FCA, are to be taken into account:

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  1. (1)

    the likely significance to the regulator concerned (as defined in APER 4.4.4 G1) of the information which it was reasonable for the individual to assume;

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  2. (2)

    whether the information related to the individual himself or to his firm;

  3. (3)

    whether any decision not to report the matter internally was taken after reasonable enquiry and analysis of the situation.

APER 4.4.7G

1Where the approved person is, or is one of the approved persons who is, responsible within the firm for reporting matters to the regulator concerned (as defined in APER 4.4.4G), failing promptly to inform the regulator concerned of information of which they are aware and which it would be reasonable to assume would be of material significance to the regulator concerned, whether in response to questions or otherwise, falls within APER 4.4.3G.

APER 4.4.8G

1In determining whether or not an approved person's conduct under APER 4.4.7G complies with Statement of Principle 4, the following are factors which, in the opinion of the FCA, are to be taken into account:

  1. (1)

    the likely significance of the information to the regulator concerned (as defined in APER 4.4.4G) which it was reasonable for the approved person to assume;

  2. (2)

    whether any decision not to inform the regulator concerned (as defined in APER 4.4.4G) was taken after reasonable enquiry and analysis of the situation.

APER 4.4.9G

1Failing without good reason to:

  1. (1)

    inform a regulator of information of which the approved person was aware in response to questions from that regulator;

  2. (2)

    attend an interview or answer questions put by a regulator, despite a request or demand having been made;

  3. (3)

    supply a regulator with appropriate documents or information when requested or required to do so and within the time limits attaching to that request or requirement;

falls within APER 4.4.3 G.