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SUP TP 3 Transitional provisions relating to SUP 10A and SUP 10B: Transition from the FSA to the FCA and PRA

1TP 3

Transitional provisions relating to SUP 10A and SUP 10B: Transition from the FSA to the FCA and PRA

TP 3.1

Transition to the FCA

3.1.1

[FCA]

R

An approved person who was, as at cutover, approved by the FSA to perform a controlled function specified by the FSA set out in column 1 of the table in SUP TP 3.1.2 R in relation to a firm, is deemed to continue to be approved by the FCA to perform the FCA-controlled function in the same row of column 2 in that table in relation to that firm. Column 3 states whether this applies in relation to all firms or just FCA-authorised persons.

3.1.2

[FCA]

R

Table: FSA controlled functions transitioned to the FCA

FSA controlled function

FCA controlled function into which approved person transitioned

Firms to which transitional relates

Director function (CF1)

Director function (CF1)

FCA-authorised persons only

Non-executive director function (CF2)

Non-executive director function (CF2)

FCA-authorised persons only

Chief executive function (CF3)

Chief executive function (CF3)

FCA-authorised persons only

Partner function (CF4)

Partner function (CF4)

FCA-authorised persons only

Director of unincorporated association function (CF5)

Director of unincorporated association function (CF5)

FCA-authorised persons only

Small friendly society function (CF6)

Small friendly society function (CF6)

FCA-authorised persons only

Apportionment and oversight function (CF8)

Apportionment and oversight function (CF8)

All firms

Compliance oversight function (CF10)

Compliance oversight function (CF10)

All firms

CASS operational oversight function (CF10A)

CASS operational oversight function (CF10A)

All firms

Money laundering reporting function (CF11)

Money laundering reporting function (CF11)

All firms

Systems and controls function (CF28)

Systems and controls function (CF28)

FCA-authorised persons only

Significant management function (CF29)

Significant management function (CF29)

All firms

Customer function (CF30)

Customer function (CF30)

All firms

TP 3.2

Transition to the PRA

3.2.1

[PRA]

R

An approved person who was, as at cutover, approved by the FSA to perform, in relation to a PRA-authorised person, a controlled function specified by the FSA set out in column 1 of the table in SUP TP 3.2.2R is deemed to be approved by the PRA to perform the PRA-controlled function in the same row of column 2 in that table in relation to that firm.

3.2.2[PRA]

R

Table: FSA controlled functions transitioned to the PRA

FSA controlled function

PRA controlled function

Director function (CF1)

Director function (CF1)

Non-executive director function (CF2)

Non-executive director function (CF2)

Chief executive function (CF3)

Chief executive function (CF3)

Partner function (CF4)

Partner function (CF4)

Director of unincorporated association function (CF5)

Director of unincorporated association function (CF5)

Small friendly society function (CF6)

Small friendly society function (CF6)

Actuarial function (CF12)

Actuarial function (CF12)

With-profits actuary function (CF12A)

With-profits actuary function (CF12A)

Lloyd's actuary function (CF12B)

Lloyd's actuary function (CF12B)

Systems and controls function (CF28)

Systems and controls function (CF28)

TP 3.3

Amalgamation of functions

3.3.1

[FCA]

G

In the case of an FCA-authorised person, if SUP 10.6.2 R (each of the FSA's governing functions includes the FSA's systems and controls function and significant management function) applied immediately before cutover, SUP 10A.6.3 R (the equivalent FCA rule) applies to the same extent following cutover.

3.3.2

[PRA]

G

In the case of a PRA-authorised person, if SUP 10.6.2 R (each of the FSA's governing functions includes the FSA's systems and controls function and significant management function) applied immediately before cutover, SUP 10B.7.1R (the equivalent PRA rule) applies following cutover in relation to the systems and controls function.

3.3.3

[FCA] [PRA]

G

In the case of a PRA-authorised person, if a person was approved by the FSA to perform one of the FSA's governing functions and the FSA's apportionment and oversight function in relation to a firm, the effect of SUP TP 3 is that he will deemed to be approved by the FCA for the apportionment and oversight function and by the PRA for the appropriate governing function in relation to that firm. SUP 10A.11.11 R (disapplication of the apportionment and oversight function if approved for a PRA governing function) and SUP 10B.7.3 R (functions making up the apportionment and oversight function if approved for a PRA governing function) do not apply.

TP 3.4

Changes to approved persons details

3.4.1

[FCA]

G

Firms are reminded that an effect of the transitional provisions in SUP TP 2.2 is that SUP 10A.14.15 R to SUP 10A.14.21 G (notifications relating to changes to the details relating to approved persons and candidates and new information relating to them) apply to changes and new information as compared to the position before cutover.

3.4.2

[PRA]

G

Firms are reminded that an effect of the transitional provisions in SUP TP 2.2 is that SUP 10B.14.16R to SUP 10B.14.22R (notifications relating to changes to the details relating to approved persons and candidates and new information relating to them) apply to changes and new information as compared to the position before cutover.

TP 3.5

Transitional provisions relating to bidding in emissions auctions

3.5.1

[FCA]

R

SUP TP 3.5 deals with an approved person in relation to a PRA-authorised person who:

(1)

immediately before cutover, fell within SUP 10.6.2A R (FSA's governing functions include certain functions relating to bidding in emissions auctions); and

(2)

immediately before cutover was not approved to perform the FSA's customer controlled function in relation to that firm.

3.5.2

[FCA]

R

SUP 10A.10.7 R (7) does not apply in relation to that person and that firm until that person stops performing that function.

3.5.3

[FCA]

G

Under the FSA's approved persons regime a person acting as a bidder's representative within the meaning of subparagraph 3 of article 6(3) of the auction regulation did not require approval to perform the FSA's customer controlled function if that person had approval for one of the FSA's governing functions. If a person was in this position immediately before cutover, acting as a bidder's representative is not included in the customer function following cutover. It is not included in any PRA controlled function either. This only applies in relation to the firm for which that person was performing that role immediately before cutover. Furthermore if that person stops performing that role and later takes it up again for the same firm he will require approval.

3.5.4

[FCA]

G

This transitional does not apply in relation to an FCA-authorised person.

TP 3.6

General

3.6.1[FCA] [PRA]

G

References in SUP TP 3 to a person being approved for the purposes of section 59 of the Act (approval for particular arrangements) or being an approved person includes someone being taken to be approved for the purposes of that section by virtue of an order made under the Act relating to transitional matters, such as one relating to the bringing into force of the Act.