Content Options

View Options

Status: You are viewing the version of the handbook as on 2019-12-18.

SYSC 27.3 Territorial scope

SYSC 27.3.1R
  1. (1)

    1A function is an FCA certification function for a UK SMCR firm only to the extent:

    1. (a)

      it is performed by a person from an establishment of the firm (or its appointed representative) in the United Kingdom; or

    2. (b)

      the person performing that function is dealing with a client of the firm in the United Kingdom from an establishment of the firm (or its appointed representative) overseas.

  2. (2)

    A function is an FCA certification function for an overseas SMCR firm only to the extent that it is performed by a person from an establishment of the firm (or its appointed representative) in the United Kingdom.

  3. (3)

    Paragraph (1) does not apply to FCA certification function (6) (material risk takers). For a UK SMCR firm, FCA certification function (6) applies without any territorial limitation.

SYSC 27.3.2G

1The FCA interprets the phrase ‘dealing with’ in SYSC 27.3.1R as including having contact with clients and extending beyond ‘dealing’ as used in the phrase ‘dealing in investments’. ‘Dealing in’ is used in Schedule 2 to the Act to describe in general terms the regulated activities which are specified in Part II of the Regulated Activities Order.

SYSC 27.3.3G

1The FCA interprets the phrase ‘a client of the firm in the United Kingdom’ in SYSC 27.3.1R as referring to:

  1. (1)

    for a client which is a body corporate, its office or branch in the United Kingdom; or

  2. (2)

    for a client who is an individual, a client who is in the United Kingdom at the time of the dealing.

SYSC 27.3.4G
  1. (1)

    2The Regulated Activities Order has an effect on the territorial scope of this chapter.

  2. (2)

    As explained in SYSC 27.7.1R (General requirements), a function is only an FCA certification function if it is connected to regulated activities.

  3. (3)

    Therefore where overseas activities are excluded from being regulated activities by the Regulated Activities Order, that will have an effect on the certification regime.

SYSC 27.3.5G
  1. (1)

    2An example of SYSC 27.3.4G is the territorial restriction relating to regulated claims management activities.

  2. (2)

    As explained in PERG 2.4A (Link between regulated claims management activities and Great Britain), a claims management activity specified in the Regulated Activities Order is only a regulated activity if it is carried on by way of business in Great Britain.

  3. (3)

    The result is that a claims management activity specified in the Regulated Activities Order carried on outside Great Britain is an unregulated activity for the purposes of this chapter and the FCA certification functions.

  4. (4)

    This restriction:

    1. (a)

      applies to the FCA certification function in SYSC 27.3.1R(3) as well as to the other FCA certification functions; and

    2. (b)

      applies in addition to the restriction in SYSC 27.3.1R.