A planned upgrade will take place on 16/05/2024 between 17:00 BST and 19:00 BST. During this time, some features that require authentication may be unavailable.
Related provisions for GENPRU 1.2.27
121 - 140 of 161 items.
Where a firm provides services to a consumer by way of a distance contract, the firm must provide the consumer with the following information in a durable medium in good time before the distance contract has been agreed:(1) the information which is required by MCOB 4.4A.1 R to MCOB 4.4A.8A R;22(2) whether or not the firm will be providing the consumer with advice;(3) the name and the main business of the firm, the geographical address at which it is established and any other geographical
For the purposes of LR 10.2.4R (1), the FCA considers the following indemnities not to be exceptional:(1) those customarily given in connection with sale and purchase agreements;(2) those customarily given to underwriters or placing agents in an underwriting or placing agreement;(3) those given to advisers against liabilities to third parties arising out of providing advisory services; and(4) any other indemnity that is specifically permitted to be given to a director or auditor
If a firm satisfies the requirement referred to in IPRU-INV 11.3.11G with professional indemnity insurance it must, in addition to maintaining an amount of own funds to cover any defined excess, hold adequate own funds to cover any exclusions in the insurance policy that would otherwise result in the firm having insufficient resources to cover liabilities arising. A firm may satisfy its requirements for professional indemnity insurance with a policy that also provides cover to
(1) Where a rule in this chapter allows a transaction to be entered into or an investment to be retained only if possible obligations arising out of the transaction or out of the retention would not cause the breach of any limits in this chapter, it must be assumed that the maximum possible liability of the authorised fund under any other of those rules has also to be provided for.(2) Where a rule in this chapter permits a transaction to be entered into or an investment to be
(1) This rule defines some of the terms used in IFPRU 1.2.3 R.(2) "Total assets" means the firm's total assets(a) set out in the most recent relevant report submitted to the FCA under SUP 16.12 (Integrated regulatory reporting); or (b) (where the firm carries out the assessment under this rule at any time after the date of its most recent report in (a)) as the firm would report to the FCA in accordance with the relevant report, as if the reporting period for that report ends on
(1) A firm must not in a financial promotion or a communication to a customer state or imply3 that credit is available regardless of the customer’s financial circumstances or status.[Note: paragraphs 3.7o of CBG and 5.2 of ILG](2) This rule does not apply to a financial promotion or communication relating to a credit agreement under which a person takes an article in pawn and the customer’s total financial liability (including capital, interest and all other charges) is limited
The effective segregation of duties is an important element in the internal controls of a firm in the prudential context. In particular, it helps to ensure that no one individual is completely free to commit a firm's assets or incur liabilities on its behalf. Segregation can also help to ensure that a firm'sgoverning body receives objective and accurate information on financial performance, the risks faced by the firm and the adequacy of its systems.
It is not possible to prescribe
how the reasonable investor test will apply in all possible situations. Any
assessment may need to1 take into consideration the anticipated impact of the information
in light of the totality of the issuer's activities,
the reliability of the source of the information and other market variables
likely to affect the relevant financial instrument in
the given circumstances. However, information which is likely to be considered
relevant to a reasonable
Table: Items which are eligible to contribute to the capital resources of a firm
Item |
Additional explanation |
|||
1. |
Share capital |
This must be fully paid and may include: |
||
(1) |
ordinary share capital; or |
|||
(2) |
preference share capital (excluding preference shares redeemable by shareholders within two years). |
|||
2. |
Capital other than share capital (for example, the capital of a sole trader, partnership or limited liability partnership) |
The capital of a sole trader is the net balance on the firm's capital account and current account. The capital of a partnership is the capital made up of the partners': |
||
(1) |
capital account, that is the account: |
|||
(a) |
into which capital contributed by the partners is paid; and |
|||
(b) |
from which, under the terms of the partnership agreement, an amount representing capital may be withdrawn by a partner only if: |
|||
(i) he ceases to be a partner and an equal amount is transferred to another such account by his former partners or any person replacing him as their partner; or |
||||
(ii) the partnership is otherwise dissolved or wound up; and |
||||
(2) |
current accounts according to the most recent financial statement. |
|||
For the purpose of the calculation of capital resources, in respect of a defined benefit occupational pension scheme: |
||||
(1) |
a firm must derecognise any defined benefit asset; |
|||
(2) |
a firm may substitute for a defined benefit liability the firm'sdeficit reduction amount, provided that the election is applied consistently in respect of any one financial year. |
|||
3. |
Reserves (Note 1) |
These are, subject to Note 1, the audited accumulated profits retained by the firm (after deduction of tax, dividends and proprietors' or partners' drawings) and other reserves created by appropriations of share premiums and similar realised appropriations. Reserves also include gifts of capital, for example, from a parent undertaking. |
||
For the purposes of calculating capital resources, a firm must make the following adjustments to its reserves, where appropriate: |
||||
(1) |
a firm must deduct any unrealised gains or, where applicable, add back in any unrealised losses on debt instruments held, or formerly held,3 in the available-for-sale financial assets category; |
|||
(2) |
a firm must deduct any unrealised gains or, where applicable, add back in any unrealised losses on cash flow hedges of financial instruments measured at cost or amortised cost; |
|||
(3) |
in respect of a defined benefit occupational pension scheme: |
|||
(a) |
a firm must derecognise any defined benefit asset; |
|||
(b) |
a firm may substitute for a defined benefit liability the firm'sdeficit reduction amount, provided that the election is applied consistently in respect of any one financial year. |
|||
4. |
Interim net profits (Note 1) |
If a firm seeks to include interim net profits in the calculation of its capital resources, the profits have, subject to Note 1, to be verified by the firm's external auditor, net of tax, anticipated dividends or proprietors' drawings and other appropriations. |
||
5. |
Revaluation reserves |
|||
6. |
General/ collective provisions (Note 1) |
These are provisions that a firm carrying on home financing1or home finance administration1holds against potential losses that have not yet been identified but which experience indicates are present in the firm's portfolio of assets. Such provisions must be freely available to meet these unidentified losses wherever they arise. Subject to Note 1, general/collective provisions must be verified by external auditors and disclosed in the firm's annual report and accounts. 1111 |
||
7. |
Subordinated loans |
Subordinated loans must be included in capital on the basis of the provisions in this chapter that apply to subordinated loans. |
||
Note: |
||||
1 |
Reserves must be audited and interim net profits, general and collective provisions must be verified by the firm's external auditor unless the firm is exempt from the provisions of Part VII of the Companies Act 1985 (section 249A (Exemptions from audit)) or, where applicable, Part 16 of the Companies Act 2006 (section 477 (Small companies: Conditions for exemption from audit))2 relating to the audit of accounts. 2 |
|||
Where the target in a reverse takeover by a shell company6 is not subject to a public disclosure regime, or if the target has securities admitted on an investment exchange or trading platform that is not a regulated market but the shell company6 is not able to give the confirmation and make the announcement contemplated by LR 5.6.12 G, the FCA will generally be satisfied that there is sufficient publicly available information in the market about the proposed transaction such that
(1) 3If a payment service provider (A) acquires all or part of the business of another payment service provider which includes transaction volumes (B), whether by merger, acquisition or transfer, during the course of a fee year, the liability for paying the PSR fee in the following fee year in relation to B shall rest with A. (2) FEES 9.2.1BR(1)4 also applies when the business acquired, transferred or merged is not a legal entity but is an unincorporated business, or is in the
1The following words or terms throughout IPRU-INV 5 appearing in bold (other than headings and titles) are to have the meanings given to them below if not inconsistent with the subject or context. If a defined term is italicised the definition appearing in the main Handbook Glossary applies.
Term |
Meaning |
||||
accounting reference date |
means: |
||||
(a) |
the date to which a firm's accounts are prepared in order to comply with the relevant Companies Act legislation. In the case of a firm not subject to Companies Act legislation, the equivalent date selected by the firm; and |
||||
(b) |
in the case of an OPS firm which is not subject to the relevant Companies Act legislation, the date to which the accounts of the OPS in respect of which the firm acts are prepared. |
||||
annual expenditure |
has the meaning given in IPRU-INV 5.5.1 (Determination). |
||||
category a body |
means: |
||||
(a) |
the government or central bank of a zone a country; or |
||||
(b) |
EU or Euratom (the European Atomic Energy Community); or |
||||
(c) |
the government or central bank of any other country, provided the receivable in question is denominated in that country's national currency. |
||||
category b body |
means: |
||||
(a) |
the European Investment Bank (EIB) or a multi-lateral development bank; or |
||||
(b) |
the regional government or local authority of a zone a country; or |
||||
(c) |
an investment firm or credit institution authorised in a zone a country; or |
||||
(d) |
a recognised clearing house or exchange; or |
||||
(e) |
an investment firm or credit institution authorised in any other country, which applies a financial supervision regime at least equivalent to the Capital Adequacy Directive. |
||||
counterparty |
means any person with or for whom a firm carries on regulated business or an ancillary activity. |
||||
counterparty risk requirement |
has the meaning given in IPRU-INV 5.11.1R (Counterparty risk requirement). |
||||
expenditure based requirement |
means the requirement calculated in accordance with IPRU-INV 5.9.1R (Expenditure based requirement). |
||||
financial resources |
has the meaning given in IPRU-INV 5.2.3R (Financial resources). |
||||
financial resources requirement |
has the meaning given in IPRU-INV 5.4.1R (Determination of requirement). |
||||
financial resources rules |
has the meaning given in IPRU-INV 5.2. |
||||
financial return |
means quarterly financial return or monthly financial return as the case may be. |
||||
foreign exchange position |
has the meaning given in IPRU-INV 5.14.1R (Foreign exchange requirement). |
||||
investment |
means a designated investment in the main Glossary. |
||||
investment business |
means designated investment business in the main Glossary. |
||||
investment firm |
has the meaning given to investment firm in the main Glossary except that it excludes persons to which MiFID does not apply as a result of articles 2 or 3 of MiFID. |
||||
Note: An investment firm is not necessarily a firm for the purposes of the rules. |
|||||
investment manager |
means a person who, acting only on behalf of a customer, either: |
||||
(a) |
manages an account or portfolio in the exercise of discretion; or |
||||
(b) |
has accepted responsibility on a continuing basis for advising on the composition of the account or portfolio. |
||||
liquid capital |
has the meaning given in IPRU-INV 5.3.1R (Calculation of own funds and liquid capital). |
||||
liquid capital requirement |
has the meaning given in IPRU-INV 5.4.4R (Liquid capital requirement). |
||||
non-retail client |
means a professional client or an eligible counterparty. |
||||
OPS or occupational pension scheme |
means any scheme or arrangement which is comprised in one or more instruments or agreements and which has, or is capable of having, effect in relation to one or more descriptions or categories of employment so as to provide benefits, in the form of pensions or otherwise, payable on termination of service, or on death or retirement, to or respect of earners with qualifying service in an employment of any such description or category. |
||||
OPS firm |
means: |
||||
(a) |
a firm which: |
||||
(i) |
carries on OPS activity but not with a view to profit; and |
||||
(ii) |
is one or more of the following: |
||||
(A) |
a trustee of the occupational pension scheme in question; |
||||
(B) |
a company owned by the trustees of the occupational pension scheme in question; |
||||
(C) |
a company which is: |
||||
(I) |
an employer in relation to the occupational pension scheme in question in respect of its employees or former employees or their dependants; or |
||||
(II) |
a company within the group which includes an employer within (I); or |
||||
(III) |
an administering authority subject to the Local Government Superannuation Regulations 1986; or |
||||
(b) |
a firm which: |
||||
(i) |
has satisfied the requirements set out in (a) at any time during the past 12 months; but |
||||
(ii) |
is no longer able to comply with those requirements because of a change in the control or ownership of the employer referred to in (a)(ii) during that period. |
||||
otc derivative |
means interest rate and foreign exchange contracts covered by Annex III to the previous version of the Banking Consolidation Directive (i.e. Directive (2000/12/EC) and off balance sheet contracts based on equities which are not traded on a recognised or designated investment exchange or other exchange where they are subject to daily margin requirements, excluding any foreign exchange contract with an original maturity of 14 calendar days or less. |
||||
other assets requirement |
has the meaning given in IPRU-INV 5.17.1R (Other assets requirement). |
||||
own funds |
has the meaning given in IPRU-INV 5.3.1R and IPRU-INV 5.3.2R, as applicable. |
||||
own funds requirement |
has the meaning given in IPRU-INV 5.4.3R and IPRU-INV 5.4.4R (Own funds requirement), as applicable. |
||||
permitted business |
means regulated activity which a firm has permission to carry on. |
||||
position risk requirement |
has the meaning given in IPRU-INV 5.11.1R (Position risk requirement). |
||||
prescribed subordinated loan agreement |
means the subordinated loan agreement prescribed by the appropriate regulator for the purposes of IPRU-INV 5.6.4R. |
||||
qualifying capital instrument |
means that part of a firm's capital which is a security of indeterminate duration, or other instrument, that fulfils the following conditions: |
||||
(a) |
it may not be reimbursed on the bearer's initiative or without the prior agreement of the appropriate regulator; |
||||
(b) |
the debt agreement must provide for the firm to have the option of deferring the payment of interest on the debt; |
||||
(c) |
the lender's claims on the firm must be wholly subordinated to those of all non-subordinated creditors; |
||||
(d) |
the documents governing the issue of the securities must provide for debt and unpaid interest to be such as to absorb losses, whilst leaving the firm in a position to continue trading; and |
||||
(e) |
only fully paid-up amounts shall be taken into account. |
||||
qualifying capital item |
means that part of a firm's capital which has the following characteristics: |
||||
(a) |
it is freely available to the firm to cover normal banking or other risks where revenue or capital losses have not yet been identified; |
||||
(b) |
its existence is disclosed in internal accounting records; and |
||||
(c) |
its amount is determined by the management of the firm and verified by independent auditors, and is made known to, and is monitored by, the FCA. |
||||
Note: Verification by internal auditors will suffice until such time as EU provisions making external auditing mandatory have been implemented. |
|||||
qualifying property |
has the meaning given in IPRU-INV 5.7.1R (Qualifying property and qualifying amount defined). |
||||
qualifying subordinated loan |
has the meaning given in IPRU-INV 5.6 (Qualifying subordinated loans). |
||||
qualifying undertaking |
has the meaning given in IPRU-INV 5.7.3R (Qualifying undertakings). |
||||
readily realisable investment |
means a unit in a regulated collective investment scheme, a life policy or any marketable investment other than one which is traded on or under the rules of a recognised or designated investment exchange so irregularly or infrequently: |
||||
(a) |
that it cannot be certain that a price for that investment will be quoted at all times; or |
||||
(b) |
that it may be difficult to effect transactions at any price which may be quoted. |
||||
regulated business |
means designated investment business in the main Glossary. |
||||
relevant foreign exchange items |
means: |
||||
(a) |
all assets less liabilities, including accrued interest, denominated in the currency (all investments at market or realisable value); |
||||
(b) |
any currency future, at the nominal value of the contract; |
||||
(c) |
any forward contract for the purchase or sale of the currency, at the contract value, including any future exchange of principal associated with currency swaps; |
||||
(d) |
any foreign currency options at the net delta (or delta-based) equivalent of the total book of such options; |
||||
(e) |
any non-currency option, at market value; |
||||
(f) |
any irrevocable guarantee; |
||||
(g) |
any other off-balance sheet commitment to purchase or sell an asset denominated in that currency. |
||||
reporting currency |
means the currency in which the firm's books of account are maintained. |
||||
specified trustee business |
1. |
means any investment business carried on in the UK by a trustee firm, but excluding each of the following activities: |
|||
(a) |
Dealing or arranging deals in investments |
||||
(i) |
where the deal is transacted or arranged by a trustee firm with or through a PTP; or |
||||
(ii) |
where the dealing or arranging is done in the course of, or is incidental to, an activity of management falling within paragraph (b) below; or |
||||
(iii) |
where the trust is a unit trust scheme and the deal is or the arrangements are made with a view to either an issue or sale of units in such a scheme to, or a redemption or repurchase or conversion of such units or a dealing in investments for such a scheme carried out by with or through, the operator or on the instructions of the operator; or |
||||
(iv) |
where the trustee firm, being a bare trustee (or, in Scotland, a nominee) holding investments for another person, is acting on that person's instructions; or |
||||
(v) |
where any arrangements do not or would not bring about the transaction in question. |
||||
(b) |
Managing investments |
||||
(i) |
where the trustee firm has no general authority to effect transactions in investments at discretion; or |
||||
(ii) |
if and to the extent that all day-to-day decisions in relation to the management of the investments or any discrete part of the investments are or are to be taken by a PTP; or |
||||
(iii) |
if and to the extent that investment decisions in relation to the investments or any discrete part of the investments are or are to be taken substantially in accordance with the advice given by a PTP; or |
||||
(iv) |
where the trustee firm is a personal representative or executor and is acting in that capacity; or |
||||
(v) |
where the trust is a unit trust scheme and all day-to-day investment decisions in the carrying on of that activity are or are to be taken by the operator of the scheme. |
||||
(c) |
Investment advice |
||||
(i) |
where the relevant advice: |
||||
(A) |
does not recommend the entry into any investment transaction or the exercise of any right conferred by any investment to acquire, dispose of, underwrite or convert such an investment; and |
||||
(ii) |
if and to the extent that the relevant advice is in substance the advice of a PTP; or |
||||
(iii) |
where the relevant advice is given by the trustee firm acting in the capacity of personal representative or executor. |
||||
(d) |
Establishing, operating or winding up a collective investment scheme including acting as trustee of an authorised unit trust scheme but only to the extent that such activities do not otherwise constitute specified trustee business. |
||||
(e) |
Any trustee activity undertaken as trustee of an issue of debentures or government or public securities: |
||||
(i) |
where the issue is made by a company listed on a recognised investment exchange or on a designated investment exchange (or by a wholly-owned subsidiary of such a company); or |
||||
(ii) |
where the issue is listed or traded either on a recognised investment exchange or on a designated investment exchange or on the Société de la Bourse de Luxembourg; or |
||||
(iii) |
where the issue is made by a government, local authority or international organisation; or |
||||
(iv) |
where the aggregate amounts issued (pursuant to the trust deed or any deed supplemental thereto and ignoring any amounts redeemed, repurchased or converted) exceed the sum of £10,000,000. |
||||
2. |
For the purpose of this definition of "specified trustee business": |
||||
(a) |
a transaction is entered into through a person if that person: |
||||
(i) |
enters into it as agent; or |
||||
(ii) |
arranges for it to be entered into as principal or agent by another person and the arrangements are such that they bring about the transaction in question; |
||||
(b) |
investment transaction means a transaction to purchase, sell, subscribe for or underwrite a particular investment and "investment decision" means a decision relating to an investment transaction; |
||||
(c) |
debentures means any securities falling within article 77 of the RAO; |
||||
(d) |
government or public securities means any securities falling within article 78) of the RAO; |
||||
(e) |
government, local authority or international organisation means: |
||||
(i) |
the government of the United Kingdom, of Northern Ireland, or of any country or territory outside the United Kingdom; |
||||
(ii) |
a local authority in the United Kingdom or Anywhere; or |
||||
(iii) |
an international organisation the members of which include the United Kingdom or another EEA State. |
||||
(f) |
in determining the size of an issue of debentures or government or public securities made in a currency other than sterling, the amount of the issue shall be converted into sterling at the exchange rate prevailing in London on the date of issue. |
||||
total capital requirement |
has the meaning given in IPRU-INV 5.4.5R (Total capital requirement). |
||||
trading book |
in relation to a firm's business or exposures, means: |
||||
(a) |
its proprietary positions in financial instruments: |
||||
(i) |
which are held for resale and/or are taken on by the firm with the intention of benefiting in the short term from actual and/or expected differences between their buying and selling prices or from other price or interest-rate variations; |
||||
(ii) |
arising from matched principal broking; |
||||
(iii) |
taken in order to hedge other elements of the trading book; |
||||
(b) |
exposures due to unsettled securities transactions, free deliveries, OTC derivative instruments, repurchase agreements and securities lending transactions based on securities included in (a)(i) to (iii) above, reverse repurchase agreements and securities borrowing transactions based on securities included in (a)(i) to (iii) above; and |
||||
(c) |
fees, commission, interest and dividends, and margin on exchange-traded derivatives which are directly related to the items included in (a) and (b) above. |
||||
trustee activity |
means, in relation to a firm, any activity undertaken in the course of or incidental to the exercise of any of its powers, or the performance of any of its duties, when |
||||
unit trust manager |
means the manager of a unit trust scheme. |
||||
zone b country |
means a country which is not a Zone A country in the Glossary. |
||||
This table belongs to COLL 3.2.4 R (Matters which must be included in the instrument constituting the fund14)
14Name of scheme |
||
1 |
A statement of: |
|
(1) |
the name of the authorised fund; and |
|
(2) |
whether the authorised fund is a UCITS scheme or a non-UCITS retail scheme. |
|
Investment powers in eligible markets |
||
2 |
A statement that, subject to any restriction in the rules in this sourcebook or the instrument constituting the fund14, the scheme has the power to invest in any eligible securities market or deal on any eligible derivatives market to the extent that power to do so is conferred by COLL 5 (Investment and borrowing powers). 14 |
|
Unitholder's liability to pay |
||
3 |
A provision that a unitholder in an AUT, ICVC or co-ownership scheme12 is not liable to make any further payment after he has paid the price of his units and that no further liability can be imposed on him in respect of the units which he holds. |
|
3A |
A provision that a unitholder in a limited partnership scheme is not liable for the debts or obligations of the limited partnership scheme beyond the amount of the scheme property which is available to the authorised contractual scheme manager to meet such debts or obligations, provided that the unitholder does not take part in the management of the partnership business.12 |
|
3B |
A provision that the exercise of rights conferred on limited partners by FCArules does not constitute taking part in the management of the partnership business.12 |
|
Base currency |
||
4 |
A statement of the base currency of the scheme. |
|
Valuation and pricing |
||
5 |
A statement setting out the basis for the valuation and pricing of the scheme. |
|
Duration of the scheme |
||
6 |
If the scheme is to be wound up after a particular period expires, a statement to that effect. |
|
Object of the scheme |
||
7 |
A statement: |
|
(1) |
as to the object of the scheme, in particular the types of investments and assets in which it and each sub-fund (where applicable) may invest; and |
|
(2) |
that the object of the scheme is to invest in property of that kind with the aim of spreading investment risk and giving unitholders the benefits of the results of the management of that property. |
|
27A |
Where the authorised fund is a qualifying money market fund, a statement to that effect and a statement that the authorised fund's investment objectives and policies will meet the conditions specified in the definition of qualifying money market fund. |
|
[deleted]13 13 |
||
Government and public securities: investment in one issuer |
||
8 |
Where relevant, for a UCITS scheme, a statement in accordance with COLL 5.2.12 R (Spread: government and public securities) with the names of 15the individual states, local authorities 15or public international bodies issuing or guaranteeing the transferable securities or approved money-market instruments15in which more than 35% in value of the scheme property may be invested15. |
|
Classes of unit |
||
9 |
A statement: |
|
(1) |
specifying the classes of unit that may be issued, and for a scheme which is an umbrella, the classes that may be issued in respect of each sub-fund; and |
|
(2) |
if the rights of any class of unit differ, a statement describing those differences in relation to the differing classes. |
|
Authorised fund manager's charges and expenses |
||
10 |
A statement setting out the basis on which the authorised fund manager may make a charge and recover expenses out of the scheme property. |
|
Issue or cancellation directly through the ICVC or depositary of an AUT or ACS12 |
||
11 |
Where relevant, a statement authorising the issue or cancellation of units to take place through the ICVC or depositary of an AUT or ACS directly.12 12 |
|
In specie issue and cancellation |
||
12 |
Where relevant, a statement authorising payment for the issue or cancellation of units to be made by the transfer of assets other than cash. |
|
Restrictions on sale and redemption |
||
13 |
Where relevant, the restrictions which will apply in relation to the sale and redemption of units under COLL 6.2.16 R (Sale and redemption). |
|
Voting at meetings |
||
14 |
The manner in which votes may be given at a meeting of unitholders under COLL 4.4.8 R (Voting rights). |
|
Certificates |
||
15 |
A statement: |
|
(1) |
for ICVCs15, authorising the issue of bearer certificates if any, and how such holders are to identify themselves; and 12 |
|
(2) |
authorising the person responsible for the register to charge for issuing any document recording, or for amending, an entry on the register, other than on the issue or sale of units. |
|
Income |
||
16 |
A statement setting out the basis for the distribution or re-investment of income. |
|
Income equalisation |
||
17 |
Where relevant, a provision for income equalisation. |
|
Redemption or cancellation of units on breach of law or rules |
||
18 |
A statement that where any holding of units by a unitholder is (or is reasonably considered by the authorised fund manager to be) an infringement of any law, governmental regulation or rule, those units must be redeemed or cancelled. |
|
ICVCs: larger and smaller denomination shares |
||
19 |
A statement of the proportion of a larger denomination share represented by a smaller denomination share for any relevant unit class. |
|
ICVCs: resolution to remove a director |
||
20 |
A statement that the ICVC may (without prejudice to the requirements of regulation 21 of the OEIC Regulations (The Authority's approval for certain changes in respect of a company), by a resolution passed by a simple majority of the votes validly cast for and against the resolution at a general meeting of unitholders, remove a director before his period of office expires, despite anything else in the ICVC's instrument of incorporation or in any agreement between the ICVC and that director. |
|
ICVCs: unit transfers |
||
21 |
A statement that the person designated for the purposes of paragraph 4 of Schedule 4 to the OEIC Regulations (Share transfers) is the person who, for the time being, is the ACD of the ICVC.1 7 |
|
ICVCs and ACSs: Charges and expenses12 |
||
22 |
A statement that charges or expenses of the ICVCor ACS12 may be taken out of the scheme property.10 |
|
10ICVCs: Umbrella schemes - principle of limited recourse |
||
1022A |
For an ICVC which is an umbrella, a statement that the assets of a sub-fund belong exclusively to that sub-fund and shall not be used to discharge directly or indirectly the liabilities of, or claims against, any other person or body, including the umbrella, or any other sub-fund, and shall not be available for any such purpose. |
|
Co-ownership schemes: umbrella schemes - principle of limited recourse |
||
22B |
For a co-ownership scheme which is an umbrella, a statement that the property subject to a sub-fund is beneficially owned by the participants in that sub-fund as tenants in common (or, in Scotland, is the common property of the participants in that sub-fund) and must not be used to discharge any liabilities of, or meet any claims against, any person other than the participants in that sub-fund.12 |
|
AUTs: governing law for a trust deed |
||
23 |
A statement that the trust deed is made under and governed by the law of England and Wales, Wales or Scotland or Northern Ireland. |
|
AUTs: trust deed to be binding and authoritative |
||
24 |
A statement that the trust deed: |
|
(1) |
is binding on each unitholder as if it had been a party to it and that it is bound by its provisions; and |
|
(2) |
authorises and requires the trustee and the manager to do the things required or permitted of them by its terms. |
|
AUTs: declaration of trust |
||
25 |
A declaration that, subject to the provisions of the trust deed and all rules made under section 247 of the Act (Trust scheme rules) and for the time being in force: |
|
(1) |
the scheme property (other than sums standing to the credit of the distribution account) is held by the trustee on trust for the unitholders according to the number of units held by each unitholder or, where relevant, according to the number of undivided shares in the scheme property represented by the units held by each unitholder; and |
|
(2) |
the sums standing to the credit of the distribution account are held by the trustee on trust to distribute or apply them in accordance with COLL 6.8 (Income: accounting, allocation and distribution). |
|
AUTs: trustee's remuneration |
||
26 |
Where relevant, a statement authorising payments to the trustee by way of remuneration for its services to be paid (in whole or in part) out of the scheme property. |
|
AUTs: responsibility for the register |
||
27 |
A statement identifying the person responsible under the rules for the maintenance of the register. |
|
ACSs: governing law for a contractual scheme deed |
||
1227A |
A statement that the contractual scheme deed is made under and governed by the law of England and Wales, or Scotland or Northern Ireland. |
|
ACSs: contractual scheme deed to be binding and authoritative |
||
1227B |
A statement that the contractual scheme deed: |
|
(1) |
is binding on each unitholder as if it had been a party to it and that it is bound by its provisions; and |
|
(2) |
authorises and requires the depositary and the authorised contractual manager to do the things required or permitted of them by its terms. |
|
ACSs: ownership of scheme property |
||
1227C |
A statement that, subject to the provisions of the contractual scheme deed and all rules made under section 261I of the Act (Contractual scheme rules) and for the time being in force: |
|
(1) |
the scheme property (other than sums standing to the credit of the distribution account) is held by, or to the order of, the depositary for and on behalf of the unitholders according to the number of units held by each unitholder or, where relevant, according to the number of undivided shares in the scheme property represented by the units held by each unitholder; |
|
(2) |
the sums standing to the credit of the distribution account are held by the depositary to distribute or apply them in accordance with COLL 6.8 (Income: accounting, allocation and distribution); and |
|
(3) |
the scheme property of a co-ownership scheme is beneficially owned by the participants as tenants in common (or, in Scotland, is the common property of the participants). |
|
ACSs: responsibility for the register |
||
1227D |
A statement identifying the person responsible under the rules for the maintenance of the register. |
|
ACSs: UCITS and NURS eligible investors |
||
1227E |
For an ACS which is a UCITS scheme or a non-UCITS retail scheme, a statement that units may not be issued to a person other than a: |
|
(1) |
||
(2) |
||
(3) |
||
1227F |
A statement that the authorised contractual scheme manager must redeemunits as soon as practicable after becoming aware that those units are vested in anyone (whether as a result of subscription or transfer of units) other than a person meeting the criteria in paragraph 27E. |
|
ACSs: UCITS and NURS transfer of units |
||
1227G |
(1) |
A statement whether the transfer of units in the ACSscheme is either: |
(a) prohibited; or |
||
(b) allowed |
||
(2) |
Where transfer of units is allowed in accordance with (1)(b), a statement that units may only be transferred in accordance with the conditions specified by FCArules, including that units may not be transferred to a person other than a: |
|
(b) large ACS investor; or |
||
(3) |
For a co-ownership scheme which is an umbrella, a statement in accordance with (1)(a) or (1)(b) and, where appropriate, a statement in accordance with (2), must also be made for the sub-funds. Where individual sub-funds have differing policies in relation to transfer of units, separate statements are required. |
|
Co-ownership schemes: constitution |
||
1227H |
For a co-ownership scheme, a statement that the arrangements constituting the scheme are intended to constitute a co-ownership scheme as defined in section 235A(2) of the Act. |
|
Co-ownership schemes: operator's powers |
||
1227I |
A statement that the operator of a co-ownership scheme is authorised to: |
|
(1) |
acquire, manage and dispose of the scheme property; and |
|
(2) |
enter into contracts which are binding on unitholders for the purposes of, or in connection with, the acquisition, management or disposal of scheme property. |
|
Co-ownership schemes: winding-up |
||
1227J |
A statement that the operator and depositary of a co-ownership scheme are required to wind up the scheme if directed to do so by the FCA in exercise of its power under section 261X (Directions) or section 261Z (Winding up or merger of master UCITS) of the Act. |
|
Limited partnership schemes: participants |
||
1227K |
A statement that the limited partners, other than the nominated partner, are to be the participants in the scheme. |
|
Limited partnership schemes: resignation of limited partners |
||
1227L |
A statement that the scheme is not dissolved on any person ceasing to be a limited partner or nominated partner provided that there remains at least one limited partner. |
|
Limited partnership schemes: inability to operate as an umbrella |
||
1227M |
A statement that the limited partnership scheme prohibits pooling as is mentioned in section 235(3)(a) of the Act in relation to separate parts of the scheme property, with the effect that the scheme cannot be an umbrella. |
|
3Investment in overseas4 property through an intermediate holding vehicle |
||
328 |
3If investment in an overseas4 immovable is to be made through an intermediate holding vehicle or a series of intermediate holding vehicles, a statement that the purpose of that intermediate holding vehicle or series of intermediate holding vehicles will be to enable the holding of overseas4 immovables by the scheme. |
|
1Exceptionally, the FCA will consider making such a challenge using its powers in sections 356 and 357 of the Act after considering, in particular, the following matters: (1) The composition of the creditors of the company including the ratio of consumer to non-consumer creditors or the nature of their claims;
(2) whether the FCA has concerns, or is aware of concerns of creditors, about the regularity of the meeting or the identification of connected or associated
(1) 14A firm must properly consider and document the use of TTCAs in the context of: (a) the relationship between the client’s obligation to the firm; and (b) the safe custody assets subjected to TTCAs by the firm.(2) A firm must be able to demonstrate that it has complied with the requirement under (1).(3) When considering, and documenting, the appropriateness of the use of TTCAs, a firm must take into account the following factors:(a) whether there is only a very weak connection
42Where the measure is not cumulative (e.g. the number of traders for fee-block A10), the firm must use the figure relating to the valuation date specified in FEES 4 Annex 1R Part 548 (e.g. 31 December for A10)48. Table A sets out the reporting requirements for the key fee-blocks when full48 actual data is not available:
Table A: calculating tariff data for second and subsequent years of authorisation when full trading figures are not available
Fee-block |
Tariff base |
Calculation where trading data are not available |
A1. Deposit acceptors |
Average MELS for October - December |
Use data available at 31 December or, if trading has not commenced by 31 December, use nil48. |
A2. Home finance providers and administrators |
Number of relevant contracts entered into or being administered in the twelve months up to 31 December |
Apply the formula (A÷B) x 12 to arrive at an annualised figure. |
A3. Insurers - general |
Gross written premium for fees purposes (GWP) 43for the financial year ended in the calendar year ending 31 December and best estimate liabilities for fees purposes (BEL) 43 valued at the end of the financial year |
GWP 43 – apply the formula (A÷B) x 12 to arrive at an annualised figure. BEL – use 43 data at valuation date or, if trading has not commenced by then, use nil48. |
A4. Insurers - life |
Gross written premium for fees purposes (GWP) 43 for the financial year ended in the calendar year ending 31 December and best estimate liabilities for fees purposes (BEL) 43 valued at the end of the financial year |
|
A5. Managing agents at Lloyd’s |
Active capacity in respect of the underwriting year at the beginning of the period to which the fee relates |
Not applicable. |
A6. The Society of Lloyd’s |
Bespoke fee |
Not applicable. |
A7. Portfolio managers |
Funds under management valued at 31 December |
Use data as at 31 December or, if trading has not commenced by 31 December, use nil48. |
A9. Managers and depositaries of investment funds, and operators of collective investment schemes or pension schemes |
Annual gross income for the financial year ended in the calendar year ending 31 December |
Apply the formula (A÷B) x 12 to arrive at an annualised figure. |
A10. Firms dealing as principal |
Number of traders as at 31 December |
Use data as at 31 December or, if trading has not commenced by 31 December, use nil48. |
A13. Advisors, arrangers, dealers or brokers |
Annual income for the financial year ended in the calendar year ending 31 December |
Apply the formula (A÷B) x 12 to arrive at the annualised figure |
A14. Corporate finance advisers |
||
A18. Home finance providers, advisers and arrangers |
||
A19. General insurance distribution44 |
||
A21. Firms holding client money or assets, or both |
The highest amount of client money and the highest amount of custody assets held over the 12 months ending 31 December |
The highest amount of client money and/or custody assets over the period between the date of authorisation and 31 December or, if trading has not started, use nil48. |
Flat fee |
Not applicable. |
|
B. Service companies |
Annual income for the financial year ended in the calendar year ending 31 December |
Apply the formula (A÷B) x 12 to arrive at the annualised figure. |
B. Regulated benchmark45 administrators |
Annual income for the financial year ended in the calendar year ending 31 December39 |
Apply the formula (A÷B) x 12 to arrive at the annualised figure.39 |
B. Recognised investment exchanges |
Annual income for the financial year ended in the calendar year ending 31 December39 |
Apply the formula (A÷B) x 12 to arrive at the annualised figure.39 |
B. Recognised auction platforms |
Flat fee |
Not applicable. |
B. Recognised overseas investment exchanges |
Flat fee |
Not applicable. |
CC1. Credit-related regulated activities with limited permission |
Annual income for the financial year ended in the calendar year ending 31 December |
Apply the formula (A÷B) x 12 to arrive at an annualised figure. |
CC2. Credit related regulated activities |
||
G.2 Payment services institutions – deposit acceptors |
See A1 deposit acceptors |
|
G.3. Large payment services institutions |
Relevant income |
Apply the formula (A÷B) x 12 to arrive at an annualised figure. |
G.4 Small payment institutions |
Flat fee |
Not applicable. |
G.5 Other payment institutions |
Relevant income |
Apply the formula (A÷B) x 12 to arrive at an annualised figure. |
G.10 Large electronic money institutions |
Average outstanding e-money over 12 months ending 31 December |
Average over the period from authorisation to 31 December. |
G.11 Small electronic money institutions |
Flat fee |
Not applicable. |
G.15 Issuer of regulated covered bonds |
Value as at 31 December |
Not applicable. |
G.20 Consumer buy-to-let (CBTL) lender |
Flat fee |
Not applicable. |
G.21 CBTL adviser and arranger |
||