Status: You are viewing the version of the handbook as on 2009-03-31.

SYSC TP 1 Common platform firms

TP 1: Common platform firms

2Application

1.1

R

SYSC TP 1 applies to a common platform firm.

Commencement and expiry of SYSC TP1

1.2

R

SYSC TP 1 comes into force on 1 January 2007 and applies until 1 November 2007.

Purpose

1.3

G

From 1 November 2007, a firm must comply with the common platform requirements and SYSC 3 will cease to apply to it. However, until 1 November 2007, a firm may choose to comply with the specific parts of the common platform requirements instead of SYSC 3. The purpose of SYSC TP 1 is to give a firm the option of complying with the common platform requirements sooner than 1 November 2007.

1.4

G

The ability to comply with the common platform requirements before 1 November 2007 does not apply to SYSC 9 (Record-keeping), SYSC 8.2 (Outsourcing of portfolio management for retail clients to a non-EEA State) or SYSC 8.3 (Guidance on outsourcing portfolio management for retail clients to a non-EEA State). All firms must continue to comply with the record-keeping requirements in SYSC 3.2.22 G until 1 November 2007, when SYSC 9 will enter into force.

The decision to comply with the common platform requirements

1.5

R

SYSC 4 to SYSC 7, SYSC 8.1 and SYSC 10 do not apply to a firm unless it decides to comply with them sooner than 1 November 2007.

1.6

R

If a firm decides to comply with the common platform requirements in accordance with SYSC TP 1.5R:

(1) it must make a record of the date of the decision and the date from which it is to be effective; and

(2) subject to SYSC TP 1.7R below, from the effective date, it must comply with SYSC 4 to SYSC 7, SYSC 8.1 and SYSC 10, and SYSC 3 will not apply to it.

1.7

R

The following provisions in SYSC 3 will continue to apply to a firm that decides to comply with the common platform requirements before the 1 November 2007:

(1)SYSC 3.2.23 R, SYSC 3.2.24 R, SYSC 3.2.26 R and SYSC 3.2.28 R to SYSC 3.2.35 R in so far as SYSC 12.1.13 R applies to it; and

(2)SYSC 3.2.20 R to SYSC 3.2.22 G.

1.8

G

The purpose of SYSC TP 1.7R is to ensure the effective operation of the provisions on consolidated risk management processes and internal control mechanisms in relation to a firm that decides to comply with the common platform requirements before 1 November 2007.

1.9

G

A decision by a firm to comply with the common platform requirements must be made in relation to all of the common platform requirements. The firm may not 'cherry-pick'.

Definitions in SYSC TP1 and the common platform requirements

1.10

R

The terms common platform firm and MiFID investment firm have effect in SYSC TP 1 and the common platform requirements as if MiFID applied generally from 1 January 2007.