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

REC 3.3 Waivers

Statutory power

REC 3.3.1GRP

Under section 294 of the Act (Modification or waiver of rules), the FSA may, on the application or with the consent of a recognised body (including an overseas recognised body), direct that any notification rule is not to apply to the body or is to apply with such modifications as may be specified in the waiver.

REC 3.3.2GRP

A waiver given under section 294 of the Act may be made subject to conditions.

REC 3.3.3GRP

Under section 294(4) of the Act, before the FSA may give a waiver of notification rules, it must be satisfied that:

  1. (1)

    compliance by the recognised body with those notification rules, or with those rules as unmodified, would be unduly burdensome or would not achieve the purpose for which those rules were made; and

  2. (2)

    the waiver would not result in undue risk to persons whose interests those rules are designed to protect.

Applications

REC 3.3.4GRP

Where a recognised body wishes to make an application to the FSA for a waiver of a notification rule, it should in the first instance inform its usual supervisory contact at the FSA.

REC 3.3.5GRP

There is no application form, but applicants should make their application formally and in writing and in accordance with any direction the FSA may make under section 294(2) of the Act. Each application should set out at least:

  1. (1)

    full particulars of the waiver which is requested;

  2. (2)

    the reason why the recognised body believes that the criteria set out in section 294(4) (and described in REC 3.3.3 G) would be met, if this waiver were granted; and

  3. (3)

    where the recognised body believes that these criteria would be met if the FSA gave a waiver under section 294 subject to any condition, particulars of the kind of condition contemplated.

REC 3.3.6GRP

The FSA may request further information from the applicant, before deciding whether to give a waiver under section 294 of the Act.

Waivers

REC 3.3.7GRP

Any waiver given by the FSA under section 294 of the Act will be made in writing, stating:

  1. (1)

    the name of the recognised body in respect of which the waiver is made;

  2. (2)

    the notification rules which are to be waived or modified in respect of that body;

  3. (3)

    where relevant, the manner in which any rule is to be modified;

  4. (4)

    any condition or time limit to which the waiver is subject; and

  5. (5)

    the date from which the waiver is to take effect.

REC 3.3.8GRP

Where the FSA considers that it will not give the waiver which has been applied for, the FSA will give reasons to the applicant for its decision. The FSA will endeavour, where practicable, to inform an applicant in advance where it seems that an application is likely to fail unless it is amended or expanded, so that the applicant will have the opportunity to make any necessary amendments or additions before the application is considered.

REC 3.3.9GRP

Where the FSA wishes to give a waiver under section 294 of the Act with the consent of a recognised body (rather than on the application of a recognised body), the FSA will correspond or discuss this with that body in order to agree an appropriate waiver.

Reviews of waivers

REC 3.3.10GRP

The FSA will periodically review any waiver it has given. The FSA has the right to revoke a waiver under section 294(6) of the Act. This right is likely to be exercised in the event of a material change in the circumstances of the recognised body or in any fact on the basis of which the waiver was given.