Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

SUP 10A.5 Significant-influence functions

What are the FCA significant-influence functions?

SUP 10A.5.1GRP

Definition of FCA significant-influence function

SUP 10A.5.2RRP

Each FCA significant-influence function is one which comes within the definition of a significant-influence function.

SUP 10A.5.3RRP

A 1significant-influence function, in relation to the carrying on of a regulated activity by an appointed representative3, means a function that is likely to enable the person responsible for its performance to exercise a significant influence on the conduct of the appointed representative’s3 affairs, so far as relating to the activity.1

SUP 10A.5.4G

[deleted]1

SUP 10A.5.5GRP

Whether an FCA controlled function is likely to result in the person responsible for its performance exercising significant influence is a question of fact in each case. 3

SUP 10A.5.5AG

3A function is not a significant-influence function unless it also meets the requirements of SUP 10A.3.1R (Provisions related to the Act).

Periods of less than 12 weeks

SUP 10A.5.6RRP

If:

  1. (1)

    a firm or its appointed representative3 appoints an individual to perform a function which, but for this rule, would be an FCA significant-influence function;

  2. (2)

    the appointment is to provide cover for an approved person whose absence is:

    1. (a)

      temporary; or

    2. (b)

      reasonably unforeseen; and

  3. (3)

    the appointment is for less than 12 weeks in a consecutive 12-month period;

the description of the relevant FCA significant-influence function does not relate to those activities of that individual.

SUP 10A.5.7GRP

SUP 10A.5.6 R enables cover to be given for, as an example, holidays and emergencies and avoids the need for the precautionary approval of, for example, a deputy. However, as soon as it becomes apparent that a person will be performing an FCA controlled function for more than 12 weeks, the authorised approved person employer of the approved person in question3 should apply for approval.