APER 1.2 explains that section 64(2) of the Act provides that if the FSA issues Statements of Principles it must also issue a code of practice for the purpose of helping to determine whether a person's conduct complies with these Statements of Principle. The code has been issued for that purpose. It also sets out some guiding principles concerning the application of the Statements of Principle and the Code of Practice for Approved Persons. Statements of Principle 1, 2, 3 and 4 apply to all approved persons performing a controlled function for a credit union, and Statements of Principle 5, 6, and 7 apply to those approved to perform significant influence functions. All controlled functions performed for a credit union are significant influence functions (APER 1.2.4 G).
An approved person performing a significant influence function must take reasonable steps to ensure that the business of the firm for which he is responsible in his controlled function is organised so that it can be controlled effectively.
An approved person performing a significant influence function must take reasonable steps to ensure that the business of the firm for which he is responsible in his controlled function complies with the regulatory requirements imposed on that business.
APER 3.2 - APER 3.3 set out factors to be taken into account in determining whether or not an approved person's conduct complies with the Statements of Principle. Since all controlled functions relevant to credit unions are significant influence functions, all these factors are relevant to credit unions.
APER 4.1APER 4.7 set out the seven Statements of Principle in turn, and provide guidance on conduct which, in the opinion of the FSA, does not comply with each of the Statements of Principle or, in the case of APER 4.3, conduct which will tend to show compliance with the relevant Statement of Principle.
Details of the disciplinary measures which may be taken against approved persons are located in ENF 11ENF 13. Approved persons should note that disciplinary action may be taken either for their personal misconduct or for conduct which results in a credit union breaching any provisions to which it is subject.