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Status: You are viewing the version of the handbook as on 2009-03-31.

APER 4.4 Statement of Principle 4

APER 4.4.1G

The Statement of Principle 4 (see APER 2.1.2 P) is in the following terms: "An approved person must deal with the FSA and with other regulators in an open and cooperative way and must disclose appropriately any information of which the FSA would reasonably expect notice."

APER 4.4.2G

For the purpose of this Statement of Principle (APER 2.1.2 P), regulators in addition to the FSA 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 his controlled function or (in the case of an individual performing a significant influence function) in connection with the business for which he is responsible. This may include an exchange or an overseas regulator.

APER 4.4.3ERP

In the opinion of the FSA, conduct of the type described in APER 4.4.4 E, APER 4.4.7 E, or APER 4.4.9 E does not comply with Statement of Principle 4 (APER 2.1.2 P).

APER 4.4.4ERP

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

APER 4.4.5GRP

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

APER 4.4.6ERP

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

  1. (1)

    the likely significance to the FSA of the information which it was reasonable for the individual to assume;

  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 4.4.7ERP

Where the approved person is, or is one of the approved persons who is, responsible within the firm for reporting matters to the FSA, failing promptly to inform the FSA of information of which he is aware and which it would be reasonable to assume would be of material significance to the FSA, whether in response to questions or otherwise, falls within APER 4.4.3 E.

APER 4.4.8ERP

In determining whether or not an approved person's conduct under APER 4.4.7 E complies with Statement of Principle 4(APER 2.1.2 P), the following are factors which, in the opinion of the FSA, are to be taken into account:

  1. (1)

    the likely significance of the information to the FSA which it was reasonable for the approved person to assume;

  2. (2)

    whether any decision not to inform the FSA was taken after reasonable enquiry and analysis of the situation.

APER 4.4.9ERP

Failing 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 E.