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Status: You are viewing the version of the handbook as on 2005-06-30.

PROF 5.3 Reference to other sourcebooks and manuals

1

Introduction

PROF 5.3.1 G

The parts of the Handbook in which provisions are disapplied or modified in relation to authorised professional firms when carrying on non-mainstream regulated activities include those described in PROF 5.3.1A G to PROF 5.3.9 G3521

General provisions

PROF 5.3.1A G

4.3.5 R provides that 4.3.1 R (Disclosure in letters to private customers) does not apply to an authorised professional firm with respect to its non-mainstream regulated activities.

2

Conduct of business sourcebook

PROF 5.3.2 G

COB 1.2.1 R (4) provides that COB does not apply to an authorised professional firm with respect to its non-mainstream regulated activities, except for:7

  1. (1)

    COB 2.1 (Clear, fair and not misleading communication), COB 3 (Financial promotion) and COB 4.2.1 R to COB 4.2.6 G, COB 4.2.9 R and COB 4.2.11 E (Content of terms of business); and67

  2. (2)

    (where these are insurance mediation activities) the IMDimplementation provisions and COB 4.3.19 R to COB 4.3.25 R as if they also applied to a firm carrying out the activities in COB 4.3.19R (1)(a)-(c) with or on behalf of private customers, unless:7

    1. (a)

      the designated professional body of the firm has made rules which implement some or all of articles 12 and 13 of the IMD;7

    2. (b)

      those rules have been approved by the FSA under section 332(5) of the Act; and7

    3. (c)

      the firm is subject to the rules in the form in which they were approved;7

    in which case they are disapplied to the extent that articles 12 and 13 of the IMD are implemented by the rules of the designated professional body.7

  3. (3)

    COB 1.2.1A G provides that the effect of COB 1.2.1 R (4)(d) is that if the relevant designated professional body of an authorised professional firm does not make rules implementing articles 12 and 13 of the IMD applicable to authorised professional firms, those firms will need to comply with the IMD implementation provisions and COB 4.3.19 R to COB 4.3.25 R as if they also applied to a firm carrying out the activities in COB 4.3.19 (1)(a)-(c) with or on behalf of private customers.7

Training and Competence sourcebook

PROF 5.3.3 G

TC 2.1.1 R (2) provides that TC 2, which imposes the substantive training and competence requirements, does not apply to an authorised professional firm with respect to its non-mainstream regulated activities.

1

Money Laundering sourcebook

1
PROF 5.3.4 G

ML 8.1.3 R provides that the Money Laundering sourcebook does

not apply to authorised professional firms when carrying on non-mainstream regulated activities.

Supervision manual

PROF 5.3.5 G

SUP 10.1.18 R provides that SUP 10 (Approved persons) does not apply (except in respect of the required functions) to an authorised professional firm in respect of its non-mainstream regulated activities. So a person such as a partner, whose only regulated activities are incidental to his professional services, in an authorised professional firm whose principal purpose is to carry on activities other than regulated activities, need not be an approved person.

Dispute resolution: Complaints sourcebook

PROF 5.3.6 G

DISP 1.1.1 R (1)(c) provides that DISP 1 (Complaint handling procedures for firms) does not apply to an authorised professional firm in so far as its non-mainstream regulated activities are concerned. DISP 2.6.7 R further provides that a complaint about an authorised professional firm cannot be handled under the Compulsory Jurisdiction of the Financial Ombudsman Service if it relates solely to non-mainstream regulated activity and can be handled by a designated professional body. This is because such a complaintwill be handled by the relevant professional body.

1

Market Conduct sourcebook

PROF 5.3.7 G

MAR 4.4.1 R (3) provides that MAR 4, which deals with the endorsement of the City Code on Takeovers and Mergers and the Rules Governing Substantial Acquisitions of Shares, does not have effect in relation to an authorised professional firm in respect of non-mainstream regulated activity.

1

3Mortgages: Conduct of business sourcebook

PROF 5.3.8 G

3 MCOB 1.2.4 G provides that MCOB does not apply to an authorised professional firm with respect to its non-mainstream regulated activities except for MCOB 2.2 (Clear, fair and not misleading communication), MCOB 3 (Financial promotion) and to a limited extent MCOB 4.4 (Initial disclosure requirements).

PROF 5.3.9 G

4 CASS 1.2.4 R provides that CASS 2, CASS 3 and CASS 4 do not apply to authorised professional firms when carrying on non-mainstream regulated activities. CASS 1.2.5 R further provides that if the non-mainstream regulated activities are insurance mediation activity, CASS 5 does not apply to an authorised professional firm, if the firm's designated professional body has rules applicable to the firm which implement the IMD and which are in the form approved by the FSA under section 332(5) of the Act.4

5Insurance: Conduct of Business sourcebook

PROF 5.3.10 G
  1. (1)

    5ICOB 1.2.10 R provides that ICOB does not apply to an authorised professional firm with respect to its non-mainstream regulated activities , except for:

    1. (a)

      ICOB 2.2 (Clear, fair and not misleading communication);

    2. (b)

      ICOB 3 (Financial promotion);

    3. (c)

      ICOB 4.2.2 R in relation to the information for customers in table ICOB 4.2.8 R items numbered (8), (9) and Note 4 covering complaints and compensation; and

    4. (d)

      those sections in ICOB which implement articles 12 and 13 of the IMD, unless:

      1. (i)

        the designated professional body of the firm has made rules which implement articles of the IMD;

      2. (ii)

        those rules have been approved by the FSA under section 332(5) of the Act; and

      3. (iii)

        the firm is subject to the rules in the form in which they were approved.

  2. (2)

    ICOB 1.2.11 G (2) provides that the effect of ICOB 1.2.10 R (4) is that if the relevant designated professional body of an authorised professional firm does not make rules implementing articles 12 and 13 of the IMD applicable to authorised professional firms those authorised professional firms will need to comply with those sections of ICOB which implement articles 12 and 13 of the IMD, namely ICOB 4.1 to ICOB 4.4 (but not ICOB 4.2.20 R to 4.2.28G), and ICOB 4.8.