Related provisions for SUP 16.5.1
1 - 7 of 7 items.
6(1) A firm must notify the FCA that it has become or ceased to be closely linked with any person and ensure the following:454(a) where a firm has elected to report changes in close links on a monthly basis under SUP 11.9.5A R, the notification must be made in line with SUP 11.9.3BA R; and4(b) in any other case, the notification must be made by completing the Close Links Notification Form (see SUP 11.9.3B G) and must include the information in SUP 11.9.3D G.4(2) If a group includes
2A firm may elect not to include the following close links in the notification submitted under SUP 11.9.1A R, SUP 11.9.1B R, SUP 11.9.5A R, SUP 11.9.5B R3 or SUP 16.5:3(1) shares held in its capacity as custodian provided it can only exercise any voting rights attached to such shares under instructions given in writing or by electronic means; (2) shares held in its capacity as collateral taker under a collateral transaction which involves the outright transfer of securities provided
(1) 3The notification in SUP 11.9.1AR (1)(b) and SUP 11.9.1BR (1)(b) should contain a list of all persons with whom the firm is aware that it has close links, at the time the notification is made, and, for each such person, state:(a) its name;(b) the nature of the close links;(c) if the close links are with a body corporate, its country of incorporation, address and registered number; and(d) if the close links are with an individual, their date and place of birth.(2) The firm
6The firm must make a notification to the FCA under SUP 11.9.1A R:(1) as soon as reasonably practicable and no later than one month after it becomes aware that it has become or ceased to be closely linked with any person; or(2) where a firm has elected to report on a monthly basis, within fifteen business days of the end of each month by completing 4the Close Links Monthly Report for that month and must submit the group organisation chart on a quarterly basis unless there have
6(1) A firm elects to report changes in close links on a monthly basis by sending a written notice of election to the firm's usual supervisory contact at the FCA.(2) An election to report changes in close links on a monthly basis will stand until such time as the firm gives its usual supervisory contact at the FCA at least one month's written notice of its intention to cease reporting changes in close links on a monthly basis.
A firm is required to notify the appropriate regulator of changes to its close links (see SUP 11.9). The effective supervision threshold conditions provide that, if a firm has close links with another person, the matters which are relevant in determining whether a firm satisfies the condition of being capable of being effective supervised include:1010(1) the nature of the relationship between the firm and that person;1010(2) whether those links or that relationship are likely
The purposes of the rules and guidance in this section are:(1) to ensure that, in addition to such notifications, the appropriate regulator10 receives regular and comprehensive information about the identities of all persons with whom a firm has close links, which is relevant to a firm's continuing to satisfy the effective supervision threshold conditions10 and to the protection of consumers; and1010(2) to implement certain requirements relating to the provision of information
(1) 10101010557[deleted]7(2) [deleted]7101010107(3) [deleted]7(4) [deleted]7(5) 57[deleted]7(6) 7A firm must submit a report to the appropriate regulator annually by completing the Close Links Annual Report in SUP 16 Annex 36A which must be sent electronically to the appropriate regulator within four months of the firm'saccounting reference date6.
7If a group includes more than one firm, a single close links notification may be made by completing the Annual Close Links Report and so satisfy the notification requirement for all firms in the group. Nevertheless, the requirement to notify, and the responsibility for notifying, remains with each firm in the group.
If a group includes more than one firm, a single annual close links report may be submitted and so satisfy the requirements of all firms in the group. Such a report should contain the information required from all of them, meet all relevant due dates, indicate all the firms on whose behalf it is submitted and give their firm reference numbers. Nevertheless, the requirement to provide a report, and the responsibility for the report, remain with each firm in the group.110
Similarly, the appropriate regulator5 needs to monitor a firm's continuing satisfaction of the5threshold conditions5 set out in paragraphs 3B, 4F and 5F of Schedule 6 to the Act (as applicable) (in relation to threshold conditions for which the FCA is responsible,5 see COND 2.32), which requires that a firm's close links are not likely to prevent the appropriate regulator's5 effective supervision of that firm. Accordingly the appropriate regulator5 needs to be notified of any
This chapter has been split into the following 14sections, covering:53514(1) annual controllers reports (SUP 16.4);(2) annual close links reports (SUP 16.5);(3) compliance reports (SUP 16.6); (4) [deleted]2424(4A) annual report and accounts (SUP 16.7A);26(5) persistency reports (SUP 16.8);53(6) annual appointed representatives reports (SUP 16.9);553(7) Verification of standing data (SUP 16.10);5814(8) product sales data reporting (SUP 16.11);51419(9) integrated regulatory reporting
Examples of reports covering a group are:(1) the compliance reports required from banks under SUP 16.6.4 R;(2) annual controllers reports required under SUP 16.4.5 R4040;(3) annual close links reports required under SUP 16.5.4 R(4) consolidated financial reports required from banks under SUP 16.12.5 R2424;(5) consolidated reporting statements required from securities and futures firms under 24SUP 16.12.11 R24;17(6) reporting in relation to defined liquidity groups under SUP 1
Before a firm appoints a person as an appointed representative (other than an introducer appointed representative) and on a continuing basis, it must establish on reasonable grounds that:11(1) the appointment does not prevent the firm from satisfying and continuing to satisfy the threshold conditions;(2) the person:(a) is solvent;(b) is otherwise 1suitable to act for the firm in that capacity;and1(c) has no close links which would be likely to prevent the effective supervision
In determining, under SUP 12.4.2 R (2)(c), whether an appointed representative or prospective appointed representative has any close links which would be likely to prevent the firm's effective supervision, a firm should consider the guidance to threshold condition 2C or 3B as applicable19 in COND 2.3.19