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SUP 10A.11 Minimising overlap with the PRA approved persons regime

Introduction

SUP 10A.11.1G

SUP 10A.11 deals with how the FCA's approved persons regime applies to PRA-authorised persons. SUP 10A.11 therefore only applies if the firm in question is a PRA-authorised person.

SUP 10A.11.2G

Both the FCA and the PRA may specify a function as a controlled function in relation to a PRA-authorised person. However, only the FCA has power to specify a customer-dealing function as a controlled function.

SUP 10A.11.3G

Therefore, if a person's job for a firm involves:

  1. (1)

    an FCA controlled function, the firm should apply to the FCA for approval;

  2. (2)

    a PRA controlled function, the firm should apply to the PRA for approval;

  3. (3)

    both an FCA controlled function and a PRA controlled function, the firm should apply to both the FCA and the PRA for approval (the purpose of SUP 10A.11 is to cut down the need for this sort of dual approval).

SUP 10A.11.4G

The PRA cannot give its approval for the performance of a PRA controlled function without the consent of the FCA. The firm does not need to apply to the FCA for that consent. The PRA must as soon as practicable notify the FCA of the receipt or withdrawal of an application to the PRA.

SUP 10A.11.5G

Under section 59B of the Act (Role of FCA in relation to PRA decisions) the FCA may arrange with the PRA that in agreed cases the PRA may give approval without obtaining the consent of the FCA. No such arrangements are currently in force.

SUP 10A.11.6G

The FCA and PRA have coordinated their approved persons regime to reduce the amount of overlap. These arrangements do not1 relate to the customer-dealing functions1.

SUP 10A.11.7G

[deleted]3

1

Guidance on how SUP 10A.11 works

SUP 10A.11.8G
  1. (1)

    [deleted]3

    1
  2. (2)

    For a Solvency II firm and a small non-directive insurer3 only, SUP 10A.11.12R disapplies the FCA governing functions for a person who is approved to perform a PRA controlled function, subject to the conditions in SUP 10A.11.12R.1

  3. (3)

    The FCA functions disapplied in accordance with the FCA2 governing functions overlap rule for Solvency II firms and small non-directive insurers3 (SUP 10A.11.12R) are absorbed into the relevant PRA controlled function by virtue of their inclusion in PRA Rulebook: Insurance – Solvency II firms: Senior Insurance Management Functions, 2.5; Non-Solvency II firms: Non-Solvency II firms – Senior Insurance Management Functions, 2.6, and Non-Solvency II firms: Large Non-Solvency II firms – Senior Insurance Management Functions, 2.5)3.

    1
SUP 10A.11.9G

[deleted]3

1
SUP 10A.11.10G

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The main rule

1
SUP 10A.11.11R

[deleted]3

1
SUP 10A.11.12R

1A person (referred to as “A” in this rule) is not performing an FCA governing function (referred to as the ‘particular’ FCA governing function in this rule) in relation to a Solvency II firm or a small non-directive insurer3 (referred to as “B” in this rule), at a particular time, if:

  1. (1)

    A has been approved by the PRA to perform any PRA controlled function in relation to B;

  2. (2)

    throughout the whole of the period between the time of the PRA approval in (1) and the time in question, A has been the subject of a current PRA approved person approval to perform a PRA controlled function in relation to B;

  3. (3)

    at the time of the PRA approval in (1), A was not subject to a current FCA approved person approval to perform the particular FCA controlled function in relation to B;

  4. (4)

    as part of the application for the PRA approval in (1), B notified the PRA that A would start to perform what would otherwise have been the particular FCA governing function (referred to as the “potential” FCA governing function in this rule) at or around the time of the PRA approval in (1); and

  5. (5)

    A started to perform the potential FCA governing function at or around the time of the PRA approval in (1) and has continued to perform it up to the time in question.