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REC 4.1 Application and purpose

Application

REC 4.1.1G

REC 4.2 to REC 4.2E3, REC 4.3, 3REC 4.5 and REC 4.6A3 apply to UK recognised bodies. REC 4.2F to REC 4.2G3REC 4.4 and REC 4.6 to REC 4.8 apply to all recognised bodies. REC 4.8 applies to applicants for recognition as a recognised body.

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Purpose

REC 4.1.2G

This chapter sets out the FCA's3 approach to the supervision of recognised bodies and contains guidance on:

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  1. (1)

    the arrangements for investigating complaints about recognised bodies made under section 299 of the Act (Complaints about recognised bodies) (REC 4.4);

  2. (2)

    the FCA's 3approach to the exercise of its powers under:

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    1. (a)

      (for RIEs)2 section 296 of the Act (Appropriate regulator's3 power to give directions) or (for RAPs) regulation 3 of the RAP regulations2 to give directions to recognised bodies (REC 4.6);

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    2. (b)

      (for RIEs)2section 297 of the Act (Revoking recognition) or (for RAPs) regulation 4 of the RAP regulations2 to revoke recognition orders (REC 4.7);

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    and the procedure to be followed in those cases and where the FCA3 decides to refuse an application for recognition as a recognised body (REC 4.8); and

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  3. (3)

    the FCA's 3approach to, and procedures for, the exercise of its powers under sections 166 and 167 of the Companies Act 1989 to give directions to UK RIEs 3in relation to action under their default rules (REC 4.5).

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REC 4.1.3G

The FCA's3 general approach to supervision is intended to ensure that:

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  1. (1)

    the FCA3 has sufficient assurance that recognised bodies continue at all times to satisfy the recognised body requirements; and21

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  2. (2)

    the FCA's3 supervisory resources are allocated, and supervisory effort is applied, in ways which reflect the actual risks to the regulatory objectives.

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REC 4.1.4G

In applying these principles of risk based supervision to the supervision of recognised bodies, the FCA3 has had particular regard to the special position of recognised bodies under the Act as well as to its general duties set out in section 2 of the Act (The FCA's 3general duties).

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REC 4.1.5G

More information on the supervision of UK recognised bodies is given in REC 4.2 and REC 4.3. More information on the supervision of overseas recognised bodies is given in REC 6.