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SUP 12.1 Application and purpose

Application

SUP 12.1.1R
  1. (1)

    This chapter applies to a firm which is considering appointing, has decided to appoint or has appointed an appointed representative.1

  2. (1A)

    This chapter applies to a UK MiFID investment firm which is considering appointing, has decided to appoint or has appointed an EEA tied agent.2

  3. (1B)

    4This chapter applies to a CBTL firm other than a CBTL lender which is considering appointing, has decided to appoint or has appointed an appointed representative in relation to CBTL business as it does to a firm.

  4. (2)

    This chapter does not apply to a UCITS qualifier.1

  5. (3)

    This chapter does not apply in relation to a tied agent acting on behalf of an EEA MiFID investment firm unless that tied agent is established in the UK.32

Purpose

SUP 12.1.2G

This chapter gives guidance to a firm, which is considering appointing an appointed representative, on how the provisions of section 39 of the Act (Exemption of appointed representatives) work. For example, it gives guidance on the conditions that must be satisfied for a person to be appointed as an appointed representative. It also gives guidance to a firm on the implications, for the firm itself, of appointing an appointed representative.

SUP 12.1.3G

The chapter also sets out the FCA's rules, and guidance on these rules, that apply to a firm before it appoints, when it appoints and when it has appointed an appointed representative. The main purpose of these rules is to place responsibility on a firm for seeking to ensure that:

  1. (1)

    its appointed representatives are fit and proper to deal with clients in its name; and

  2. (2)

    clients dealing with its appointed representatives are afforded the same level of protection as if they had dealt with the firm itself.

SUP 12.1.4G

The FCA has produced a leaflet entitled "Becoming an appointed representative" which provides a comprehensive summary of some of the main features of the appointed representative regime. You may download a copy of this leaflet from our website at http://www.fca.org.uk/your-fca/documents/factsheet-becoming-an-appointed-representative.

SUP 12.1.5G

2This chapter also sets out guidance about section 39A of the Act, which is relevant to a UK MiFID investment firm that is considering appointing an FCA registered tied agent. It also sets out the FCA's rules, and guidance on those rules, in relation to the appointment of an EEA tied agent by a UK MiFID investment firm.