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SUP 10C.1 1Application

General

SUP 10C.1.1R

This chapter applies to every relevant authorised person.

SUP 10C.1.2G

This chapter is also relevant to FCA-approved SMF managers of a relevant authorised person.

Non-UK relevant authorised persons: UK services

SUP 10C.1.3R

2This chapter does not apply to a non-UK relevant authorised person in relation to regulated activities which are carried on in the United Kingdom, other than in relation to an establishment maintained by it or its appointed representative in the United Kingdom.

EEA relevant authorised persons: general application

SUP 10C.1.4R

2This chapter does not apply to an EEA relevant authorised person if and in so far as the question of whether a person is fit and proper to perform a particular function in relation to that firm is reserved to an authority in a country or territory outside the United Kingdom under:

  1. (1)

    the Single Market Directives;

  2. (2)

    the Treaty;

  3. (3)

    the auction regulation.

SUP 10C.1.5G
  1. (1)

    2SUP 10C.1.4R reflects the provisions of section 59(8) of the Act and, where relevant, the Treaty.

  2. (2)

    It preserves the principle of Home State prudential regulation.

  3. (3)

    For an EEA relevant authorised person, the effect is to reserve to the Home State regulator the assessment of fitness and propriety of a person performing a function in the exercise of an EEA right. A member of the governing body, or the notified3 UK branch manager, of an EEA relevant authorised person, acting in that capacity, will not, therefore, have to be approved by the FCA under the Act.

  4. (4)

    Aside from (1) to (3) an EEA relevant authorised person should have:

    1. (a)

      considered the impact of the Host State rules with which it is required to comply when carrying on a passported activity or a Treaty activity through a branch in the United Kingdom;

    2. (b)

      been notified of those provisions under Part II of Schedule 3 to the Act in the course of satisfying the conditions for authorisation in the United Kingdom; and

    3. (c)

      considered, for example, the position of a branch manager based in the United Kingdom who may also be performing a function in relation to the carrying on of a regulated activity not covered by the EEA right of the firm. In so far as the function is within the description of an FCA controlled function, the firm will need to seek approval for that person to perform that FCA controlled function.

Overseas firms: general

SUP 10C.1.5AG
  1. (1)

    2Generally, where an overseas manager of a non-UK relevant authorised person has responsibilities in relation to its branch in the United Kingdom that are strategic only, they will not need to be an FCA-approved SMF manager.

  2. (2)

    However, where an overseas manager is responsible for implementing that strategy for its branch in the United Kingdom, and has not delegated that responsibility to an SMF manager in the United Kingdom, they will potentially be performing an FCA controlled function if the detailed conditions in this chapter defining the relevant FCA controlled function are met.

UK firm with overseas branches or providing services on a cross-border basis

SUP 10C.1.6G

There are no territorial limitations to SUP 10C for:

  1. (1)

    overseas branches of UK firms; or

  2. (2)

    UK firms providing services into or out of the United Kingdom on a cross-border basis.

Appointed representatives

SUP 10C.1.7R

This chapter does not deal with an approved person who is approved under SUP 10A.1.16BR (Appointed representatives).

SUP 10C.1.8G
  1. (1)

    SUP 10A.1.15R to SUP 10A.1.16DG (Appointed representatives) deal with the approved persons regime for appointed representatives of relevant authorised persons.

  2. (2)

    In general this chapter does not apply to appointed representatives of relevant authorised persons. SUP 10A applies instead.

  3. (3)

    In theory, a person employed by an appointed representative of a relevant authorised person could come within one of the controlled functions in this chapter. If so, that person will be performing a senior management function and this chapter would apply. However, the FCA thinks that such a situation should rarely, if ever, arise.

  4. (4)

    If a person is an approved person under this chapter and under SUP 10A for the same firm, this chapter applies to FCA-designated senior management functions under this chapter and SUP 10A applies to controlled functions under SUP 10A. It is unlikely that such a scenario would ever arise in practice.

Insolvency practitioners

SUP 10C.1.9R

This chapter does not apply to a function performed by a person acting as:

  1. (1)

    an insolvency practitioner within the meaning of section 388 of the Insolvency Act 1986;

  2. (2)

    a nominee in relation to a voluntary arrangement under Parts I (Company Voluntary Arrangements) and VIII (Individual Voluntary Arrangements) of the Insolvency Act 1986;

  3. (3)

    an insolvency practitioner within the meaning of article 3 of the Insolvency (Northern Ireland) Order 1989; or

  4. (4)

    a nominee in relation to a voluntary arrangement under Parts II (Company Voluntary Arrangements) and VIII (Individual Voluntary Arrangements) of the Insolvency (Northern Ireland) Order 1989.