Content Options

View Options

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

SUP 10.13 Changes to an approved person's details

Moving within a firm

SUP 10.13.1G

An approved person's job may change from time to time as a result, for instance, of a change in personal job responsibilities or a firm's regulated activities. Where the changes will involve the person performing one or more different controlled functions from those for which approval has already been granted, then an application must be made to the FSA for approval for the person to perform those controlled functions. The firm must take reasonable care to ensure that an individual does not begin performing a controlled function until the FSA has granted approved person status to that individual in respect of that controlled function. This applies to individuals seeking approval in respect of a controlled function within the firm for which they already perform controlled functions. If the approved person is ceasing to perform controlled functions, as well as applying for approval in respect of additional controlled functions, then refer to SUP 10.13.3 D.

SUP 10.13.2G

The relevant 2Form A must be used to apply for an individual to perform further controlled functions for a firm for which he already performs a controlled function as an approved person (see SUP 10.12.2 D). It is not mandatory to complete all parts of the form. See the notes relevant2to each2form for full details.

22
SUP 10.13.3D

A firm must use Form E where an approved person is both ceasing to perform one or more controlled functions and needs to be approved in relation to one or more new controlled functions within the same firm or group.1

Moving between firms

SUP 10.13.4G

If it is proposed that an approved person will no longer be performing a controlled function under an arrangement entered into by one firm or one of its contractors, but will be performing the same or a different controlled function under an arrangement entered into by a new firm or one of its contractors (whether or not the new firm is in the same group as the old firm), the new firm will be required to make a fresh application for the performance of the controlled function by that person.

SUP 10.13.5G

In certain circumstances, when the FSA already has the information it would usually require, a shortened version of the relevant2 Form A may be completed. See the notes relevant2 to each2 form for full details.

22

Ceasing to perform a controlled function

SUP 10.13.6R

A firm must submit to the FSA a completed Form C no later than seven business days after an approved person ceases to perform a controlled function.

SUP 10.13.7R
  1. (1)

    A firm must notify the FSA as soon as practicable after it becomes aware, or has information which reasonably suggests, that it will submit a qualified Form C in respect of an approved person.

  2. (2)

    Form C is qualified if the information it contains:

    1. (a)

      relates to the fact that the firm has dismissed, or suspended, the approved person from its employment; or

    2. (b)

      relates to the resignation by the approved person while under investigation by the firm, the FSA or any other regulatory body; or

    3. (c)

      otherwise reasonably suggests that it may affect the FSA's assessment of the approved person's fitness and propriety.

SUP 10.13.8G

Notification under SUP 10.13.7 R may be made by telephone, fax or email and should be made, where possible, within one business day of the firm becoming aware of the information. If the firm does not submit Form C, it should inform the FSA in due course of the reason. This could be done using Form D, if appropriate.

SUP 10.13.9G

A firm is responsible for notifying the FSA if any approved person has ceased to perform a controlled function under an arrangement entered into by its appointed representative or former appointed representative

SUP 10.13.10G

A firm can submit Form C or Form E to the FSA in advance of the cessation date. When a person ceases the arrangement under which he performs a controlled function, he will automatically cease to be an approved person in relation to that controlled function. A person can only be an approved person in relation to a specific controlled function. Therefore, a person is not an approved person during any period between ceasing to perform one controlled function (when he is performing no other controlled function) and being approved in respect of another controlled function.

SUP 10.13.11G

Sending forms promptly will help to ensure that any fresh application can be processed within the standard response times.

SUP 10.13.12R
  1. (1)

    If a firm (A):

    1. (a)

      is considering appointing a person to perform any of the customer functions;

    2. (b)

      requests another firm (B), as a former employer of that person, for a reference or other information in connection with that appointment; and

    3. (c)

      indicates to B the purpose of the request;

    B must, as soon as reasonably practicable, give to A all relevant information of which it is aware.

  2. (2)

    When giving the information to A under (1), B must have regard to the purpose of the request and in particular to:

    1. (a)

      any outstanding liabilities of that person from commission payments;

    2. (b)

      any relevant outstanding or upheld complaint from an eligible complainant against that person;

    3. (c)

      section 5 of the relevant 2Form A in SUP 10 Annex 4 (Application to perform controlled functions under approved persons regime);

    4. (d)

      FIT 2 (Main assessment criteria); and

    5. (e)

      if SUP 16.8.1 G (1) (Persistency reports from insurers) applies to B, the persistency of any life policies sold by that person.

SUP 10.13.13G

A firm supplying a reference in accordance with SUP 10.13.12 R owes a duty to its former employee and the recipient firm to exercise due skill and care in the preparation of the reference. The reference should be accurate and based on documented fact. The firm may give frank and honest views, but only after taking reasonable care both as to factual content, and as to the opinions expressed, and verifying the information upon which they are based.

Changes to an approved person's personal details

SUP 10.13.14R

If an approved person's title, name or national insurance number changes, the firm for which the person performs a controlled function must notify the FSA on Form D of that change within seven business days of the firm becoming aware of the matter.

SUP 10.13.15G

The duty to notify in SUP 10.13.14 R does not apply to changes to an approved person's private address.

SUP 10.13.16R

If a firm becomes aware of information which would reasonably be material to the assessment of an approved person's, or a candidate's, fitness and propriety (see FIT), it must inform the FSA on Form D, or (if it is more practical to do so and with the prior agreement of the FSA) by fax or e-mail,3 as soon as practicable.

SUP 10.13.17G

The duty to notify in SUP 10.13.16 R extends to any circumstances that would normally be declared when giving the information required for section 5 of Form A or matters considered in FIT 2.

SUP 10.13.18R
  1. (1)

    If, in relation to a firm which has completed the relevant 2Form A (SUP 10 Annex 4), any of the details in section 3.01 (Arrangements and controlled functions) are to change, the firm must notify the FSA on Form D , or (if it is more practical to do so and with the prior agreement of the FSA) by fax or e-mail

    3
  2. (2)

    The notification must be made as soon as reasonably practicable after the firm becomes aware of the proposed change.

  3. (3)

    Paragraphs (1) and (2) also apply to a firm in respect of an approved person, to whom the grandfathering arrangements applied as if the firm had completed the relevant 2Form A for that person.

    2
SUP 10.13.19G

An example of where a firm should use Form D is when an individual who is appointed by one appointed representative becomes employed by another appointed representative but continues to perform the investment adviser function for the firm. The firm should notify the FSA by completing Section 1.07 of Form D.

SUP 10.13.20G

The grandfathering arrangements applying to an approved person referred to in SUP 10.13.18 R are contained in Part VI (Approved persons) of the Financial Services and Markets Act (Transitional Provisions) (Authorised Persons etc.) Order 2001 (SI 2001/2636). Article 72 of that Order provides, in general terms, that, where a person was performing a function at the beginning of 1 December 2001 which became a controlled function under the Act, the continued performance of that function by that person was taken to be approved by the FSA. That person therefore became an approved person without the need for a Form A.