Content Options

View Options

Status: You are viewing the version of the handbook as on 2016-02-03.

SUP 10A.14 Changes to an FCA-approved person's details

Moving within a firm

SUP 10A.14.1GRP

An FCA-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 FCA controlled functions different from those for which approval has already been granted, then an application must be made to the FCA for approval for the person to perform those FCA controlled functions. The firm must take reasonable care to ensure that an individual does not begin performing an FCA controlled function until the FCA has granted FCA-approved person status to that individual in respect of that FCA controlled function. Similarly, a firm must get the FCA's approval if a person is to start performing an FCA controlled function in relation to that firm when he already has the PRA's approval to perform a PRA controlled function in relation to that firm.

SUP 10A.14.2GRP

If an FCA-approved person or a PRA-approved person is ceasing to perform FCA controlled functions or PRA controlled function, as well as applying for approval in respect of FCA controlled functions, SUP 10A.14.4 D generally applies. Further details can be found in SUP 10A Annex 2.

SUP 10A.14.3GRP

If a person is to perform an FCA controlled function for a firm for which he already performs a PRA controlled function or FCA controlled function as an approved person but he is not at the same time ceasing to perform an FCA controlled function or PRA controlled function, a firm should use Form A. It is not mandatory to complete all parts of the form. See the notes relevant to each form for full details.

SUP 10A.14.4DRP
  1. (1)

    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 FCA controlled functions within the same firm or group.

  2. (2)

    A firm must not use Form E if the approved person has never before been approved to perform a significant-influence function for any firm or has not been subject to a current approved person approval from the FCA or PRA to perform a significant-influence function in relation to any firm for more than six months.

  3. (3)

    A firm must not use Form E if a notification has been made or should be made

    under SUP 10A.14.17 R (Changes in fitness to be notified under Form D) or SUP 10B.12.18 (the equivalent PRA rule) in relation to any controlled functions that that person is ceasing to perform (as referred to in (1)) or any controlled function that he is continuing to perform in relation to that firm or a firm in the same group.

SUP 10A.14.5G

SUP 10A.16.1 D explains how applications should be submitted.

Moving between firms

SUP 10A.14.6GRP

If it is proposed that an FCA-approved person will no longer be performing an FCA controlled function under an arrangement entered into by one firm or one of its contractors, but will be performing the same or a different FCA 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 FCA controlled function by that person.

SUP 10A.14.7GRP

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

Ceasing to perform an FCA controlled function

SUP 10A.14.8RRP

A firm must submit to the FCA a completed Form C, in the form set out in SUP 10A Annex 6R, no later than seven business days after an FCA-approved person ceases to perform an FCA controlled function. This does not apply if the firm has already notified the FCA of the proposal to do that using Form E in accordance with this chapter or has notified the PRA of the proposal to do that using the PRA's Form E in accordance with SUP 10B of the PRA's Handbook.

SUP 10A.14.9G

SUP 10A.16.2 R explains how notifications should be submitted.

SUP 10A.14.10RRP
  1. (1)

    A firm must notify the FCA 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 FCA-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 FCA-approved person from its employment; or

    2. (b)

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

    3. (c)

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

SUP 10A.14.11GRP

Notification under SUP 10A.14.10 R may be made by telephone, email or fax 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 FCA in due course of the reason. This could be done using Form D, if appropriate.

SUP 10A.14.12GRP

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

SUP 10A.14.13GRP

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

SUP 10A.14.14GRP

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

Changes to an approved person's personal details

SUP 10A.14.15RRP

If an FCA-approved person's title, name or national insurance number changes, the firm for which the person performs an FCA controlled function must notify the FCA on Form D, in the form set out in SUP 10A Annex 7R, of that change within seven business days of the firm becoming aware of the matter.

SUP 10A.14.16GRP

The duty to notify in SUP 10A.14.15 R does not apply to changes to an FCA-approved person's private address.

SUP 10A.14.17RRP

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

SUP 10A.14.18GRP

SUP 10A.16.2 R applies to the submission of Form D.

SUP 10A.14.19GRP

Failing to disclose relevant information to the FCA may be a criminal offence under section 398 of the Act.

SUP 10A.14.20RRP

The duty to notify in SUP 10A.14.17 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 10A.14.21GRP
  1. (1)

    If, in relation to a firm which has completed the relevant Form A (SUP 10A Annex 4D), any of the details relating to arrangements and FCA controlled functions are to change, the firm must notify the FCA on Form D (SUP 10A Annex 7R).

  2. (2)

    The notification under (1) must be made as soon as reasonably practicable after the firm becomes aware of the proposed change.

  3. (3)

    This also applies in relation to an FCA controlled function for which an application was made using Form E.

  4. (4)

    This rule also applies to a firm in respect of an approved person, to whom the grandfathering arrangements relating to the coming into force of the Act applied as if the firm had completed the relevant Form A for that person.

SUP 10A.14.22GRP

SUP 10A.16.2 R also applies to the submission of Form D under SUP 10A.14.21 G.

SUP 10A.14.23GRP

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 customer function for the firm. The firm should notify the FCA by completing Section 1.07 of Form D.

Ongoing alerts for retail adviser complaints

SUP 10A.14.24R
  1. (1)

    A firm must notify the FCA, in the form set out in SUP 10 Annex 9R, where:

    1. (a)

      in any twelve-month period, it has upheld three complaints about matters relating to activities1 carried out by any one employee when acting as a 1 retail investment adviser; or

      1
    2. (b)

      it has upheld a complaint about matters relating to activities1 carried out by any one employee when acting as1 a retail investment adviser, where the redress paid exceeds £50,000.

      1
  2. (2)
    1. (a)

      Notifications made under (1)(a) must be made by the end of the period of 20 business days, beginning on the day in which the firm has upheld the third complaint.

    2. (b)

      Notifications made under (1)(b) must be made by the end of the period of 20 business days, beginning on the day in which the firm has upheld the complaint.

SUP 10A.14.25G

For the purpose of SUP 10A.14.24 R:

  1. (1)

    when calculating the number of complaints in SUP 10A.14.24R (1)(a), the firm should exclude complaints previously notified to the FCA under this rule;

  2. (2)

    redress, under SUP 10A.14.24R (1)(b), should be interpreted to include an amount paid, or cost borne, by the firm, where a cash value can be readily identified, and should include:

    1. (a)

      amounts paid for distress and inconvenience;

    2. (b)

      a free transfer out to another provider which transfer would normally be paid for;

    3. (c)

      goodwill payments and goodwill gestures;

    4. (d)

      interest on delayed settlements;

    5. (e)

      waiver of an excess on an insurance policy; and

    6. (f)

      payments to put the consumer back into the position the consumer should have been in had the act or omission not occurred; and

  3. (3)

    if a firm reports on the amount of redress paid under SUP 10A.14.24R (1)(b), the redress should not include repayments or refunds of premiums which had been taken in error (for example where a firm had been taking, by direct debit, twice the actual premium amount due under a policy); the refund of the overcharge would not count as redress.

[Note: See DISP 1.10.2A R for the duty to notify complaints under the complaints reporting rules]

SUP 10A.14.26R

Notifications under SUP 10A.14.24 R must be made electronically using a method of notification prescribed by the FCA.