Content Options

View Options

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

SUP 2.3 Information gathering by the appropriate regulator on its own initiative: cooperation by firms

Introduction: Methods of information gathering requiring cooperation

SUP 2.3.1GRP

The appropriate regulator uses various methods of information gathering on its own initiative which require the cooperation of firms:5

5
  1. (1)

    Visits may be made by representatives or appointees of the appropriate regulator. These visits may be made on a regular basis, on a sample basis, for special purposes such as theme visits (looking at a particular issue across a range of firms), or when the appropriate regulator has a particular reason for visiting a firm. Appointees of the appropriate regulator may include persons who are not appropriate regulator staff, but who have been appointed to undertake particular monitoring activities for the appropriate regulator (paragraph 6(2) of Schedule 1 to the Act). The appropriate regulator needs to have access to a firm's documents, personnel and business premises to carry out a visit.5

  2. (2)

    The appropriate regulator may seek meetings at the appropriate regulator's offices or elsewhere.5

  3. (3)

    The appropriate regulator may seek information or request documents by telephone, at meetings or in writing, including by electronic communication.5

    5
SUP 2.3.2GRP

The appropriate regulator expects to request meetings or access to business premises during reasonable business hours. The appropriate regulator also normally expects to be able to give reasonable notice to a firm or connected person when it seeks information, documents, meetings or access to business premises. On rare occasions, however, the appropriate regulator may seek access to premises without notice. The prospect of unannounced visits is intended to encourage firms to comply with the requirements and standards under the regulatory system at all times.

Access to a firm's documents and personnel

SUP 2.3.3GRP

In complying with Principle 11, the appropriate regulator considers that a firm should, in relation to the discharge by the appropriate regulator of its functions under the Act:

  1. (1)

    make itself readily available for meetings with representatives or appointees of the appropriate regulator as reasonably requested;

  2. (2)

    give representatives or appointees of the appropriate regulator reasonable access to any records, files, tapes or computer systems, which are within the firm's possession or control, and provide any facilities which the representatives or appointees may reasonably request;

  3. (3)

    produce to representatives or appointees of the appropriate regulator specified documents, files, tapes, computer data or other material in the firm's possession or control as reasonably requested;

  4. (4)

    print information in the firm's possession or control which is held on computer or on microfilm or otherwise convert it into a readily legible document or any other record which the appropriate regulator may reasonably request;

  5. (5)

    permit representatives or appointees of the appropriate regulator to copy documents or other material on the premises of the firm at the firm's reasonable expense and to remove copies and hold them elsewhere, or provide any copies, as reasonably requested; and

  6. (6)

    answer truthfully, fully and promptly all questions which are reasonably put to it by representatives or appointees of the appropriate regulator.

SUP 2.3.4GRP

In complying with Principle 11, the appropriate regulator considers that a firm should take reasonable steps to ensure that the following persons act in the manner set out in SUP 2.3.3 G:

  1. (1)

    its employees, agents and appointed representatives; and

  2. (2)

    any other members of its group, and their employees and agents.

(See also, in respect of appointed representatives, SUP 12.5.3 G (2)).

Access to premises

SUP 2.3.5RRP
  1. (1)

    A firm must permit representatives of the appropriate regulator, or persons appointed for the purpose by the appropriate regulator, to have access, with or without notice, during reasonable business hours to any of its business premises in relation to the discharge of the appropriate regulator's functions under the Act or its obligations under the short selling regulation3.

  2. (2)

    A firm must take reasonable steps to ensure that its agents, suppliers under material outsourcing arrangements and appointed representatives permit such access to their business premises. (See also, in respect of appointed representatives, SUP 12.5.3 G (2)).

SUP 2.3.6GRP

The appropriate regulator normally expects to give reasonable notice of a visit (See SUP 2.3.2 G).

Suppliers under material outsourcing arrangements

SUP 2.3.7RRP

A firm must take reasonable steps to ensure that each of its suppliers under material outsourcing arrangements deals in an open and cooperative way with the appropriate regulator in the discharge of its functions under the Act in relation to the firm.

SUP 2.3.8GRP

The cooperation that a firm is expected to procure from such suppliers is similar to that expected of the firm, in the light of the guidance in SUP 2.3.3 G to SUP 2.3.4 G, but does not extend to matters outside the scope of the appropriate regulator's functions in relation to the firm. SUP 2.3.5 R (2) also requires a firm to take reasonable steps regarding access to the premises of such suppliers.

SUP 2.3.9GRP

When a firm appoints or renews the appointment of a supplier under a material outsourcing arrangement, it should satisfy itself that the terms of its contract with the supplier require the supplier to give the appropriate regulator7 access to its premises as described in SUP 2.3.5 R (2), and to cooperate with the appropriate regulator7 as described in SUP 2.3.7 R. The appropriate regulator7 does not consider that the 'reasonable steps' in SUP 2.3.7 R would require a firm to seek to change a contract, already in place either7 when that rule: (1)7 was made by the appropriate regulator7 on 21 June 2001; or (2) was designated by the appropriate regulator7, until renewal of the contract.

7777
SUP 2.3.10GRP

The appropriate regulator will normally seek information from the firm in the first instance, but reserves the right to seek it from a supplier under a material outsourcing arrangement if the appropriate regulator considers it appropriate.

Information requested on behalf of other regulators

SUP 2.3.11GRP

The appropriate regulator may ask a firm to provide it with information at the request of or on behalf of other regulators to enable them to discharge their functions properly. Those regulators may include overseas regulators or the Takeover Panel. The appropriate regulator may also, without notifying a firm, pass on to those regulators information which it already has in its possession. The appropriate regulator's disclosure of information to other regulators is subject to the obligation described in SUP 2.2.4 G (Confidentiality of information).

SUP 2.3.12AGRP

7In complying with Principle 11, the FCA considers that a firm should cooperate with it in providing information for other regulators. Sections 169 (Investigations etc. in support of overseas regulator) of the Act gives the FCA certain statutory powers to obtain information and appoint investigators for overseas regulators if required (see DEPP 7 and EG 3).