AUTH 1
Introduction to the Authorisation manual
AUTH 1.1
Application and purpose
- 01/12/2004
Application
AUTH 1.1.1
See Notes
Purpose
AUTH 1.1.2
See Notes
- 03/09/2001
AUTH 1.1.3
See Notes
AUTH 1.2
Introduction
- 01/12/2004
AUTH 1.2.1
See Notes
AUTH 1.2.2
See Notes
- 03/09/2001
AUTH 1.2.3
See Notes
AUTH 1.2.4
See Notes
AUTH 1.2.5
See Notes
AUTH 1.2.6
See Notes
AUTH 1.3
The Authorisation manual
- 01/12/2004
AUTH 1.3.1
See Notes
- 03/09/2001
AUTH 1.3.2
See Notes
- 18/10/2001
AUTH 1.3.3
See Notes
AUTH 1.3.4
See Notes
- 03/09/2001
AUTH 1.3.5
See Notes
- 03/09/2001
AUTH 1.3.6
See Notes
AUTH 1.3.7
See Notes
AUTH 1.3.8
See Notes
- 03/09/2001
AUTH 1.3.9
See Notes
Summary of AUTH
This table belongs to AUTH 1.3.7 G
Chapter: | Applicable to: | On: |
AUTH 2: Authorisation and regulated activities | a person wishing to find out whether it needs to be authorised (or is an exempt person). | the Act, the Regulated Activities Order and the Exemption Order. |
AUTH 3: Applications for Part IV permission | an applicant for Part IV permission. | how the FSA will exercise the powers granted to it in Part IV of the Act to determine and, if appropriate, grant an application for Part IV permission. |
AUTH 4: Authorisation Fees | an applicant for Part IV permission. | the fees the FSA will levy on applicants for Part IV permission. |
AUTH 5: Qualifying for authorisation under the Act | 1. an EEA firm wishing to exercise its EEA right and establish a branch in, or provide cross border services into, the United Kingdom; | how an EEA firm, a Treaty firm or a UCITS qualifier can qualify for authorisation under the Act. |
2. a Treaty firm wishing to exercise its Treaty rights; | ||
3. a prospective UCITS qualifier. | ||
AUTH 6: Approved persons | 1. an applicant
for Part IV permission seeking
approval for a person to perform a controlled
function under arrangements to
be entered into by the firm or
its contractors (including appointed
representatives); 2. a candidate. | 1. the controlled functions that
the FSA has
specified; and. 2. how the FSA will exercise the powers given to it in Part V of the Act to require firms to obtain prior approval for persons who will perform controlled functions. |
Note: EEA firms, Treaty firms and UCITS qualifiers should refer to SUP 10 (Application). | ||
AUTH 7: Periodical publications, news services and broadcasts: application for certification | anyone involved in publishing periodicals, or in providing news services or broadcasts, who gives (or proposes to give) advice about securities or contractually based investments. | 1. whether the person will be carrying on the regulated activity of advising on investments; and |
2. how the FSA will exercise its power to give certificates. | ||
AUTH 8: Determining applications | 1. applicants for Part IV permission generally; | 1. the procedures which the FSA will follow when granting an application; and |
2. an EEA firm or a Treaty firm that has submitted an application for approval of a person under the approved persons regime; | 2. a summary
of the FSA's decision
making procedures for: (a) refusing, or proposing to refuse, an application for Part IV permission or an application for approval under the approved persons regime; or | |
3. a candidate. | (b) granting, or proposing to grant, an application for Part IV permission subject to limitations or requirements not applied for or with a narrower description of regulated activity than that to which the application relates. |
AUTH 1.4
The FSA's approach to applications for Part IV permission: an overview
- 01/12/2004
AUTH 1.4.1
See Notes
- 03/09/2001
AUTH 1.4.2
See Notes
- 03/09/2001
AUTH 1.4.3
See Notes
- 03/09/2001
The FSA's approach to risk assessment
AUTH 1.4.4
See Notes
- 03/09/2001
AUTH 1.5
Understanding the requirements and standards of the regulatory system
- 01/12/2004
AUTH 1.5.1
See Notes
- 03/09/2001
AUTH 1.5.2
See Notes
- 03/09/2001
AUTH 1.5.3
See Notes
AUTH 1.5.4
See Notes
- 03/09/2001
AUTH 1.6
Applying for Part IV permission: overview of the process
- 01/12/2004
AUTH 1.6.1
See Notes
- 03/09/2001
AUTH 1.6.2
See Notes
- 03/09/2001
AUTH 1.6.3
See Notes
- 03/09/2001
AUTH 1.6.4
See Notes
- 03/09/2001
AUTH 1.6.5
See Notes
- 03/09/2001
AUTH 1.6.6
See Notes
AUTH 1.6.7
See Notes
- 01/07/2003
AUTH 1.6.8
See Notes
- 01/07/2003
AUTH 1.6.9
See Notes
AUTH 1.6.10
See Notes
- 03/09/2001
AUTH 1.6.11
See Notes
- 03/09/2001
AUTH 1.6.12
See Notes
- 01/07/2003
AUTH 1.7
Appointed representatives
- 01/12/2004
AUTH 1.7.1
See Notes
- 03/09/2001
AUTH 1.7.2
See Notes
- 18/10/2001
AUTH 1.8
What other general guidance is available from the FSA?
- 01/12/2004
AUTH 1.8.1
See Notes
- 03/09/2001
AUTH 1.8.2
See Notes
AUTH 1.8.3
See Notes
- 03/09/2001
AUTH 1.8.4
See Notes
- 01/10/2002
AUTH 1.8.5
See Notes
AUTH 1.9
Next steps?
- 01/12/2004
AUTH 1.9.1
See Notes
- 03/09/2001
AUTH 1.9.2
See Notes
Who to contact at the FSA
This table belongs to AUTH 1.9.1 G
FSA dept. | For advice on: | Contact details: |
Authorisation and Approvals Department | The authorisation aspects of the Act and relevant secondary legislation made under the Act (for example, the Regulated Activities Order) | Authorisation
Enquiries The Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS Telephone: 020 7066 0082 |
Authorisation and Approvals Department | Applications for Part IV permission | Authorisation
Teams The Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS Telephone: 020 7066 3954 email: corporate.authorisation@fsa.gov.uk |
Regulatory Decisions | Passporting notifications (into or out of the United Kingdom) | Passport Notification
Unit The Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS Telephone: 020 7066 1000 email: passport.notifications@fsa.gov.uk |
Authorisation and Approvals Department | Applications for approval of persons under the approved persons regime | Enquiries and
Applications Department (Individual Approvals team) The Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS Telephone: 020 7066 0019 Fax: 020 7066 0017 email: iva@fsa.gov.uk |
- 01/07/2003
AUTH 1 Annex 1
Introduction to the Authorisation Manual
- 01/12/2004
Where to next?
AUTH 1 Ann 1
See Notes
AUTH 2
Authorisation and regulated activities
AUTH 2.1
Application and purpose
- 01/12/2004
Application
AUTH 2.1.1
See Notes
- 03/09/2001
Purpose
AUTH 2.1.2
See Notes
- 03/09/2001
AUTH 2.2
Introduction
- 01/12/2004
AUTH 2.2.1
See Notes
- 03/09/2001
AUTH 2.2.2
See Notes
- 03/09/2001
AUTH 2.2.3
See Notes
- 03/09/2001
AUTH 2.2.4
See Notes
- 03/09/2001
AUTH 2.2.5
See Notes
- 03/09/2001
AUTH 2.3
The business element
- 01/12/2004
AUTH 2.3.1
See Notes
- 03/09/2001
AUTH 2.3.2
See Notes
- 01/10/2002
AUTH 2.3.3
See Notes
- 03/09/2001
AUTH 2.4
Link between activities and the United Kingdom
- 01/12/2004
AUTH 2.4.1
See Notes
- 03/09/2001
AUTH 2.4.2
See Notes
- 03/09/2001
AUTH 2.4.3
See Notes
- 21/08/2002
AUTH 2.4.4
See Notes
- 03/09/2001
AUTH 2.4.5
See Notes
- 03/09/2001
AUTH 2.4.6
See Notes
- 03/09/2001
AUTH 2.4.7
See Notes
- 21/08/2002
AUTH 2.5
Investments and activities: general
- 01/12/2004
AUTH 2.5.1
See Notes
- 03/09/2001
AUTH 2.5.2
See Notes
- 03/09/2001
Modification of certain exclusions as a result of Investment Services and Insurance Mediation Directives
AUTH 2.5.3
See Notes
- 03/09/2001
Investment services
AUTH 2.5.4
See Notes
- 03/09/2001
AUTH 2.5.5
See Notes
- 01/10/2002
Insurance mediation or reinsurance meditation
AUTH 2.5.6
See Notes
- 03/09/2001
AUTH 2.6
Specified investments: a broad outline
- 01/12/2004
AUTH 2.6.1
See Notes
- 03/09/2001
Deposits
AUTH 2.6.2
See Notes
- 03/09/2001
AUTH 2.6.3
See Notes
- 01/10/2002
AUTH 2.6.4
See Notes
- 03/09/2001
Electronic Money
AUTH 2.6.4A
See Notes
- 27/04/2002
Rights under a contract of insurance
AUTH 2.6.5
See Notes
- 03/09/2001
AUTH 2.6.6
See Notes
- 03/09/2001
AUTH 2.6.7
See Notes
- 03/09/2001
AUTH 2.6.8
See Notes
- 03/09/2001
Shares etc
AUTH 2.6.9
See Notes
- 03/09/2001
AUTH 2.6.10
See Notes
- 03/09/2001
Debt instruments
AUTH 2.6.11
See Notes
- 03/09/2001
AUTH 2.6.12
See Notes
- 03/09/2001
Warrants
AUTH 2.6.13
See Notes
- 03/09/2001
AUTH 2.6.14
See Notes
- 03/09/2001
Certificates representing securities
AUTH 2.6.15
See Notes
- 03/09/2001
AUTH 2.6.16
See Notes
- 03/09/2001
Units
AUTH 2.6.17
See Notes
- 03/09/2001
AUTH 2.6.18
See Notes
- 03/09/2001
Rights under a stakeholder pension scheme
AUTH 2.6.19
See Notes
Options
AUTH 2.6.20
See Notes
- 03/09/2001
Futures
AUTH 2.6.21
See Notes
- 03/09/2001
AUTH 2.6.22
See Notes
- 03/09/2001
Contracts for differences
AUTH 2.6.23
See Notes
- 03/09/2001
AUTH 2.6.24
See Notes
- 03/09/2001
Lloyd's investments
AUTH 2.6.25
See Notes
- 03/09/2001
Rights under a funeral plan
AUTH 2.6.26
See Notes
- 03/09/2001
Rights under a regulated mortgage contract
AUTH 2.6.27
See Notes
- 31/10/2004
Rights to or interests in investments
AUTH 2.6.28
See Notes
- 31/10/2004
AUTH 2.6.29
See Notes
- 03/09/2001
AUTH 2.7
Activities: a broad outline
- 01/12/2004
AUTH 2.7.1
See Notes
- 03/09/2001
Accepting deposits
AUTH 2.7.2
See Notes
- 03/09/2001
Issuing e-money
AUTH 2.7.2A
See Notes
- 01/10/2002
Effecting or carrying out contracts of insurance as principal
AUTH 2.7.3
See Notes
- 03/09/2001
AUTH 2.7.4
See Notes
- 03/09/2001
Dealing in investments (as principal or agent)
AUTH 2.7.5
See Notes
- 03/09/2001
AUTH 2.7.6
See Notes
- 03/09/2001
Arranging deals in investments and arranging regulated mortgage activities
AUTH 2.7.7
See Notes
- 18/10/2001
AUTH 2.7.7A
See Notes
- 01/10/2002
Managing investments
AUTH 2.7.8
See Notes
- 03/09/2001
Safeguarding and administering investments
AUTH 2.7.9
See Notes
- 03/09/2001
AUTH 2.7.10
See Notes
- 03/09/2001
Sending dematerialised instructions
AUTH 2.7.11
See Notes
- 03/09/2001
Establishing etc collective investment schemes
AUTH 2.7.12
See Notes
- 01/04/2004
AUTH 2.7.13
See Notes
In addition, express provision is included in the Regulated Activities Order to make acting as trustee of an authorised unit trust scheme into a regulated activity. The full picture for authorised schemes (that is, schemes that can be promoted to the public) is as follows:
- (1) Acting as trustee of an authorised unit trust scheme is expressly included as a regulated activity.
- (2) Acting as a depositary of an open-ended investment company that is authorised under regulations made under section 262 of the Act (Open-ended investment companies), is a regulated activity.
- (3) Acting as a sole director of such a company is a regulated activity.
- (4) Managing an authorised unit trust scheme will amount to operating the scheme and so will be a regulated activity. A person acting as manager is also likely to be carrying on other regulated activities (such as dealing (see AUTH 2.7.5 G) or managing investments (see AUTH 2.7.8 G)).
- (5) An open-ended investment company will, once it is authorised under regulations made under section 262 of the Act, become an authorised person in its own right under Schedule 5 to the Act (Persons concerned in Collective Investment Schemes). Under ordinary principles, a company operates itself and an authorisedopen-ended investment company will be operating the collective investment scheme constituted by the company. It is not required to go through a separate process of authorisation as a person because it has already undergone the process of product authorisation.
- (6) Operators, trustees or depositaries of UCITS schemes constituted in other EEA States are also authorised persons under Schedule 5 of the Act if those schemes qualify as recognised collective investment schemes for the purposes of section 264 of the Act.
- 03/09/2001
Establishing etc stakeholder pension schemes
AUTH 2.7.14
See Notes
- 03/09/2001
Advising on investments
AUTH 2.7.15
See Notes
- 03/09/2001
AUTH 2.7.16
See Notes
- 03/09/2001
Lloyd's activities
AUTH 2.7.17
See Notes
- 03/09/2001
Entering funeral plan contracts
AUTH 2.7.18
See Notes
- 01/10/2002
AUTH 2.7.19
See Notes
- 03/09/2001
Entering into and administering a regulated mortgage contract
AUTH 2.7.20
See Notes
- 01/10/2002
Agreeing
AUTH 2.7.21
See Notes
- 01/10/2002
AUTH 2.8
Exclusions applicable to particular regulated activities
- 01/12/2004
AUTH 2.8.1
See Notes
- 03/09/2001
Accepting deposits
AUTH 2.8.2
See Notes
- 21/08/2002
Issuing e-money
AUTH 2.8.2A
See Notes
- 27/04/2002
Effecting and carrying out contracts of insurance
AUTH 2.8.3
See Notes
- 21/08/2002
Dealing in investments as principal
AUTH 2.8.4
See Notes
The regulated activity of dealing in investments as principal applies to specified transactions relating to any security or to any contractually based investment (apart from rights under funeral plan contracts or rights to or interests in such contracts). The activity is cut back by exclusions as follows.
- (1) Of particular significance is the exclusion in article 15 of the Regulated Activities Order (Absence of holding out etc). This applies where dealing in investments as principal involves entering into transactions relating to any security or assigning rights under a life policy (or rights or interests in such a contract). In effect, it superimposes an additional condition that must be met before a person's activities become regulated activities. The additional condition is that a person must hold himself out as making a market in the relevant specified investments or as being in the business of dealing in them, or he must regularly solicit members of the public with the purpose of inducing them to deal. This exclusion does not apply to dealing activities that relate to any contractually based investment except the assigning of rights under a life policy.
- (2) Entering into a transaction relating to a contractually based investment is not regulated if the transaction is entered into by an unauthorised person and it takes place in either of the following circumstances (a transaction entered into by an authorised person would be caught). The first set of circumstances is where the person with whom the unauthorised person deals is either an authorised person or an exempt person who is acting in the course of a business comprising a regulated activity in relation to which he is exempt. The second set of circumstances is where the unauthorised person enters into a transaction through a non-UK office (which could be his own) and he deals with or through a person who is based outside the United Kingdom. This non-UK person must be someone who, as his ordinary business, carries on any of the activities relating to securities or contractually based investments that are generally treated as regulated activities.
- (3) A person (for example, a bank) who provides another person with finance for any purpose can accept an instrument acknowledging the debt (and as security for it) without risk of dealing as principal as a result.
- (4) A company does not deal as principal by issuing its own shares or share warrants and a person does not deal as principal by issuing his own debentures or debenture warrants.
- (5) Risk-management activities involving options, futures and contracts for differences will not require authorisation if specified conditions are met. The conditions include the company's business consisting mainly of unregulated activities and the sole or main purpose of the risk management activities being to limit the impact on that business of certain kinds of identifiable risk.
- (6) A person will not be treated as carrying on the activity of dealing in investments as principal if, in specified circumstances (outlined in AUTH 2.9), he enters as principal into a transaction:
- (a) while acting as bare trustee (or, in Scotland, as nominee);
- (b) in connection with the sale of goods or supply of services;
- (c) that takes place between members of a group or joint enterprise;
- (d) in connection with the sale of a body corporate;
- (e) in connection with an employee share scheme;
- (f) as an overseas person;
- (g) as an incoming ECA provider (see AUTH 2.9.18 G).
- 01/10/2002
Dealing in investments as agent
AUTH 2.8.5
See Notes
- 21/08/2002
Arranging deals in investments and arranging regulated mortgage contracts
AUTH 2.8.6
See Notes
- 01/10/2002
Managing investments
AUTH 2.8.7
See Notes
- 21/08/2002
Safeguarding and administering investments
AUTH 2.8.8
See Notes
- 21/08/2002
Sending dematerialised instructions
AUTH 2.8.9
See Notes
- 01/10/2002
Establishing etc collective investment schemes
AUTH 2.8.10
See Notes
- 21/08/2002
Establishing etc stakeholder pension schemes
AUTH 2.8.11
See Notes
- 01/10/2002
Advising on investments
AUTH 2.8.12
See Notes
- 21/08/2002
Lloyd's activities
AUTH 2.8.13
See Notes
- 03/09/2001
Entering funeral plan contracts
AUTH 2.8.14
See Notes
- 21/08/2002
Agreeing
AUTH 2.8.15
See Notes
- 21/08/2002
AUTH 2.8.16
See Notes
- 03/09/2001
AUTH 2.9
Regulated activities: exclusions applicable into certain circumstances
- 01/12/2004
AUTH 2.9.1
See Notes
- 01/10/2002
AUTH 2.9.2
See Notes
- 03/09/2001
Trustees, nominees or personal representatives
AUTH 2.9.3
See Notes
- 03/09/2001
AUTH 2.9.4
See Notes
- 03/09/2001
Professions or business not involving regulated activities
AUTH 2.9.5
See Notes
- 03/09/2001
AUTH 2.9.6
See Notes
- 21/02/2002
Sale of goods and supply of services
AUTH 2.9.7
See Notes
- 03/09/2001
AUTH 2.9.8
See Notes
- 31/10/2004
Group and joint enterprises
AUTH 2.9.9
See Notes
- 03/09/2001
AUTH 2.9.10
See Notes
- 03/09/2001
Sale of body corporate
AUTH 2.9.11
See Notes
- 03/09/2001
AUTH 2.9.12
See Notes
- 03/09/2001
Employee share schemes
AUTH 2.9.13
See Notes
- 03/09/2001
AUTH 2.9.14
See Notes
- 03/09/2001
Overseas persons
AUTH 2.9.15
See Notes
- 03/09/2001
AUTH 2.9.16
See Notes
- 03/09/2001
AUTH 2.9.17
See Notes
- 03/09/2001
Incoming ECA providers
AUTH 2.9.18
See Notes
- 03/09/2001
Insurance mediation activities
AUTH 2.9.19
See Notes
- 03/09/2001
AUTH 2.10
Persons carrying on regulated activities who do not need authorisation
- 01/12/2004
AUTH 2.10.1
See Notes
- 03/09/2001
AUTH 2.10.2
See Notes
- 03/09/2001
AUTH 2.10.3
See Notes
- 03/09/2001
AUTH 2.10.4
See Notes
- 03/09/2001
Appointed representatives
AUTH 2.10.5
See Notes
- 03/09/2001
Recognised Investment Exchanges and Recognised Clearing Houses
AUTH 2.10.6
See Notes
- 03/09/2001
Particular exempt persons
AUTH 2.10.7
See Notes
- 03/09/2001
AUTH 2.10.8
See Notes
- 03/09/2001
Members of Lloyd's
AUTH 2.10.9
See Notes
- 03/09/2001
AUTH 2.10.10
See Notes
- 03/09/2001
AUTH 2.10.11
See Notes
- 03/09/2001
Members of the professions
AUTH 2.10.12
See Notes
- 03/09/2001
AUTH 2.10.13
See Notes
- 03/09/2001
AUTH 2.10.14
See Notes
- 03/09/2001
AUTH 2.10.15
See Notes
- 03/09/2001
AUTH 2.10.16
See Notes
- 03/09/2001
AUTH 2.11
What to do now?
- 01/12/2004
AUTH 2.11.1
See Notes
- 03/09/2001
AUTH 2 Annex 1
Authorisation and regulated activities
- 01/12/2004
Do you need authorisation?
AUTH 2 Annex 1
See Notes
- 03/09/2001
AUTH 2 Annex 2
Regulated activities and the permission regime
- 01/12/2004
AUTH 2 Annex 2.1
See Notes
1.1 G | Table 1 is designed to relate the permission regime to regulated activities. Section 42(6) of the Act gives the FSA the power to describe the regulated activity or regulated activities for which it gives permission in such manner as the FSA considers appropriate. Table 1 details how the FSA has chosen to describe the regulated activities and specified investments for the purposes of the permission regime. |
1.2 G | In an application for Part IV permission, an applicant will need to state the regulated activities it requires permission to carry on. This will involve an applicant identifying the regulated activities and the specified investments associated with those activities for which it requires Part IV permission. |
1.3 G | Part II of the Regulated Activities Order (Specified activities) specifies the activities for the purposes of section 22 of the Act. This section states that an activity is a regulated activity if it is an activity of a specified kind which is carried on by way of business and: |
(1) | relates to an investment of a specified kind; or |
(2) | in the case of an activity specified for the purposes of section 22(1)(b) of the Act, is carried on in relation to property of any kind. |
Part III of the Regulated Activities Order (Specified investments) specifies the investments referred to at AUTH 2 Annex 2. | |
1.4 G | Column 1 of Table 1 lists the regulated activities and column 2 lists the associated specified investments. Descriptions of some categories of specified investments are expanded in Tables 2 and 3. There are notes to all three tables which provide further explanation where appropriate. |
1.5 G | A reference to an article in the tables in AUTH 2 Annex 2 G is to the relevant article in the Regulated Activities Order. |
Table 1: Regulated Activities [See note 1 to Table 1] | ||
Regulated activity | Specified investment in relation to which the regulated activity (in the corresponding section of column one) may be carried on | |
Accepting deposits | ||
(a) accepting deposits (article 5) | deposit (article 74) | |
Issuing electronic money | ||
(aa) issuing electronic money (article 9B) | electronic money (article 74A) | |
Insurance business | ||
(b) effecting contracts of insurance (article 10(1)) | contract of insurance (article 75) [Expanded in Table 2] | |
(c) carrying out contracts of insurance (article 10(2)) | ||
Designated investment business [see note 1A and 1B to Table 1] | ||
(d) dealing in investments as principal (article 14) [see note 2 to Table 1] | security [Expanded in Table 3]; or | |
(e) dealing in investments as agent (article 21) [see note 2 to Table 1] | contractually based investment [Expanded in Table 3] | |
(f) arranging (bringing about) deals in investments (article 25(1)) [see note 1B to Table 1] [also see Sections of Table 1 headed 'Lloyd's market' and 'regulated mortgage activities'] | ||
(g) making arrangements with a view to transactions in investments (article 25(2)) [see note 1B to Table 1] [also see Sections of Table 1 headed 'Lloyd's market' and 'regulated mortgage activities'] | ||
(h) managing investments (article 37) [see note 3 to Table 1] | ||
(i) safeguarding and administering investments (article 40) [see note 3 Table 1] | ||
For the purposes of the permission regime, this regulated activity is subdivided into: | ||
(i) | safeguarding and administration of assets (without arranging); | |
(ii) | arranging safeguarding and administration of assets | |
(j) advising on investments (article 53) [see note 1B to Table 1] [also see Section of Table 1 headed 'Lloyd's market' and 'regulated mortgage activity'] | ||
For the purposes of the permission regime, this regulated activity is subdivided into: | ||
(i) | advising on investments (except pension transfers and pension opt-outs); | |
(ii) | advising on pension transfers and pension opt-outs [see note 4 to Table 1] | |
(k) sending dematerialised instructions (article 45(1)) | ||
(l) causing dematerialised instructions to be sent (article 45(2)) | ||
(m) establishing, operating or winding up a collective investment scheme (article 51(1(a)) | [see note 5 to Table 1] | |
For the purposes of the permission regime, this regulated activity is subdivided into: | ||
(i) | establishing, operating or winding up a regulated collective investment scheme; | |
(ii) | establishing, operating or winding up an unregulated collective investment scheme | |
(n) acting as trustee of an authorised unit trust scheme (article 51(1)(b)) | ||
(o) acting as the depositary or sole director of an open-ended investment company (article 51(1)(c)) | ||
(p) establishing, operating or winding up a stakeholder pension scheme (article 52) | ||
Insurance mediation activity [see note 5A to Table 1] | ||
(pa) dealing in investments as agent (article 21) | life policy [see note 5B to Table 1] | |
(pb) arranging (bringing about) deals in investments (article 25(1)) | pure protection contract [see note 5C to Table 1] | |
(pc) making arrangements with a view to deals in investments (article 25(2)) | general insurance contract [see note 5D to Table 1] | |
(pd) assisting in the administration and performance of a contract of insurance (article 39A) | rights to or interests in investments (Article 89) in so far as they relate to a life policy | |
(pe) advising on investments (article 53) | ||
For the purposes of the permission regime, this regulated activity is subdivided into: | ||
(i) | advising on investments (except pension transfers or pension opt-outs); | |
(ii) | advising on pension transfers or pension opt-outs [See note 5E to Table 1] | |
The Lloyd's market [see note 6 to Table 1] | ||
(q) advising on syndicate participation at Lloyd's (article 56) | membership of a Lloyd's syndicate (article 86(2)) | |
(r) managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's (article 57) | underwriting capacity of a Lloyd's syndicate (article 86(1)) | |
(s) arranging (bringing about) deals in investments (article 25(1)) | underwriting capacity of a Lloyd's syndicate (article 86(1)), membership of a Lloyd's syndicate (Article 86(2)) or rights to or interests in investments (Article 89) in so far as they relate to underwriting capacity of a Lloyd's syndicate or membership of a Lloyd's syndicate | |
(t) making arrangements with a view to transactions in investments (article 25(2)) | ||
Funeral plan providers | ||
(u) entering as provider into a funeral plan contract (article 59) [see note 1A] | funeral plan contract (article 87) | |
Regulated mortgage activity | ||
(v) arranging (bringing about) regulated mortgage contracts (article 25(A)(1)) | regulated mortgage contract (Article 88) | |
(w) making arrangements with a view to regulated mortgage contracts (article 25(A)(2)) | ||
(x) advising on regulated mortgage contracts (article 53A) | ||
(y) entering into a regulated mortgage contract (article 61(1)) | ||
(z) administering a regulated mortgage contract (article 61(2)) |
Notes to Table 1 |
Note 1: |
In addition to the regulated activities listed in Table 1, article 64 of the Regulated Activities Order specifies that agreeing to carry on a regulated activity is itself a regulated activity in certain cases. This applies in relation to all the regulated activities listed in Table 1 apart from: |
• accepting deposits (article 5); |
• issuing electronic money (article 9B) |
• effecting and carrying out contracts of insurance (article 10); |
•establishing, operating or winding up a collective investment scheme (article 51(a)); |
• acting as trustee of an authorised unit trust scheme (article 51(1)(b)); |
• acting as the depositary or sole director of an open-ended investment company (article 51(1)(c)); and |
• establishing, operating or winding up a stakeholder pension scheme (article 52). |
Permission to carry on the activity of agreeing to carry on a regulated activity will be given automatically by the FSA in relation to those other regulated activities for which an applicant is given permission (other than those activities in articles 5, 9B, 10, 51 and 52 detailed above). |
Note 1A: |
Funeral plan contracts are contractually based investments. Accordingly, the following are regulated activities when carried on in relation to a funeral plan contract: (a) arranging (bringing about) deals in investments, (b) making arrangements with a view to transactions in investments, (c) managing investments, (d) safeguarding and administering investments, (e) advising on investments, (f) sending dematerialised instructions and (g) causing dematerialised instructions to be sent (as well as agreeing to carry on each of the activities listed in (a) to (g)). However, they are not designated investment business. |
Note 1B: |
Life policies are contractually based investments. Where the regulated activities listed as designated investment business in (e) to (g) and (j) are carried on in relation to a life policy, these activities also count as 'insurance mediation activities'. The full list of insurance mediation activities is set out in (pa) to (pe). The regulated activities of agreeing to carry on each of these activities will, if carried on in relation to a life policy, also come within both designated investment business and insurance mediation activities. |
Note 2: |
For the purposes of the regulated activities of dealing in investments as principal (article 14) and dealing in investments as agent (article 21), the definition of contractually based investments [expanded in Table 3] excludes a funeral plan contract (article 87) and rights to or interests in funeral plan contracts. |
Note 3: |
(i) The regulated activities of managing investments (article 37) and safeguarding and administering investments (article 40) may apply in relation to any assets, in particular circumstances, if the assets being managed or safeguarded and administered include, or may include, any security or contractually based investment. |
Note 4: |
(j) For the purposes of the permission regime, the activity in (j)(ii) of advising on pension transfers and pension opt-outs is carried on in respect of the following specified investments: |
• unit (article 81); |
• stakeholder pension scheme (article 82); and |
• life policy (as defined in note 5); |
• rights to or interests in investments in so far as they relate to a unit, a stakeholder pension scheme or a life policy. |
Note 5: |
Article 4(2) of the Regulated Activities Order specifies the activities (m) to (p) for the purposes of section 22(1)(b) of the Act. That is, these activities will be regulated activities if carried on in relation to any property and are not expressed as relating to a specified investment. |
Note 5A: |
Where they are carried on in relation to a life policy, the activities listed as insurance mediation activities in (pa) to (pe) (as well as the regulated activity of agreeing to carry on those activities) are also designated investment business. |
Note 5B: |
Life policy is the term used in the Handbook to mean 'qualifying contract of insurance' (as defined in Article 3(1) of the Regulated Activities Order), and except in COB 3, AUTH App 1 and AUTH App 5 the term also includes a long-term care insurance contract which is a pure protection contract. |
Note 5C: |
Pure protection contract is the term used in the Handbook to mean a long-term insurance contract which is not a life policy. |
Note 5D: |
General insurance contract is the term used in the Handbook to mean contract of insurance within column 1 of Table 2. |
Note 5E: |
For the purposes of the permission regime, the activity in (pe)(ii) of advising on pension transfers and pension opt-outs is carried on in respect of the following specified investments: |
• life policy (explained in note 5A); |
• rights to or interests in investments in so far as they relate to a life policy. |
Note 6: |
• Section 315 of the Act (The Society: authorisation and permission) states that the Society of Lloyd's has permission to carry on the regulated activities referred to in that section, one of which is specified in article 58 of the Regulated Activities Order. This permission is unique to the Society of Lloyd's. |
Table 2: Contracts of insurance | |||
Contract of insurance (article 75 of the RAO) | |||
(a) general insurance contract (Part I of Schedule 1 to the Regulated Activities Order) | (b) long-term insurance contract (Part II of Schedule 1 to the Regulated Activities Order) | ||
1.1.3 Number | |||
(1) | 1 | Accident (paragraph 1) | life and annuity (paragraph I) |
(a) | 2 | Sickness (paragraph 2) | marriage and birth (paragraph II) |
(i) | 3 | Land vehicles (paragraph 3) | linked long-term (paragraph III) |
(ii) | 4 | Railway rolling stock (paragraph 4) | permanent health (paragraph IV) |
(iii) | 5 | Aircraft (paragraph 5) | tontines (paragraph V) |
(iv) | 6 | Ships (paragraph 6) | capital redemption (paragraph VI) |
(v) | 7 | Goods in transit (paragraph 7) | pension fund management (paragraph VII) |
(vi) | 8 | fire and natural forces (paragraph 8) | collective insurance (paragraph VIII) |
(vii) | 9 | damage to property (paragraph 9) | social insurance (paragraph IX) |
(viii) | 10 | motor vehicle liability (paragraph 10) | |
(ix) | 11 | aircraft liability (paragraph 11) | |
(x) | 12 | liability of ships (paragraph 12) | |
(xi) | 13 | general liability (paragraph 13) | |
(xii) | 14 | credit (paragraph 14) | |
(xiii) | 15 | suretyship (paragraph 15) | |
(xiv) | 16 | miscellaneous financial loss (paragraph 16) | |
(xv) | 17 | legal expenses (paragraph 17) | |
(xvi) | 18 | assistance (paragraph 18) | |
Notes to Table 2 | |||
Note 1: See IPRU(INS) Ann 10.2 Part II for the groups of classes of general insurance business from the Annex to the First non-Life Directive. | |||
Note 2: See IPRU(INS) 11.8 and the definition of ancillary risks in IPRU(INS) and AUTH 3.12.6 G to AUTH 3.12.12 G for guidance on the treatment of supplementary and ancillary provisions in relation to contracts of insurance. |
Table 3: Securities, contractually based investments and relevant investments [see notes 1 and 2 to Table 3] | ||
Security (article 3(1)) | Contractually based investment (article 3(1)) | Relevant investment (article 3(1)) |
share (article 76) debenture (article 77) government and public security (article 78) warrant (article 79) certificate representing certain security (article 80) unit (article 81) stakeholder pension scheme (article 82) rights to or interests in investments (article 89) in so far as they relate to any of the above categories of security |
option (article
83) For the purposes of the permission regime, option is subdivided into: • option (excluding a commodity option and an option on a commodity future); • commodity option and option on a commodity future. future (article 84) For the purposes of the permission regime, future is subdivided into: • future (excluding a commodity future and arolling spot forex contract); • commodity future; • rolling spot forex contract. contract for differences (article 85) For the purposes of the permission regime, contract for differences is subdivided into: • contract for differences (excluding a spread bet and a rolling spot forex contract); • spread bet; • rolling spot forex contract. life policy (but excluding a long-term care insurance contract which is a pure protection contract) [see note 5B to Table 1] funeral plan contract (article 87) [see note 1A to Table 1] rights to or interests in investments (article 89) in so far as they relate to any of the above categories of contractually based investment. |
contractually
based investment (article 3(1)) pure protection contract [see note 5C to Table 1] general insurance contract [see note 5D to Table 1] |
Notes to Table 3 | ||
Note 1:
1. Security, contractually based investment and relevant investment are not, in themselves, specified investments they are defined as including a number of specified investments as set out in Table 3. Relevant investments is the term that is used to cover contractually based investments together with rights under a general insurance contract and a pure protection contract. Note 2: (1) For the purposes of the regulated activities of dealing in investments as principal (article 14) and dealing in investments as agent (article 21), the definition of contractually based investments excludes a funeral plan contract (article 87) and rights to or interests in funeral plan contracts. |
AUTH 3
Applications
for Part IV permission
AUTH 3.1
Application and purpose
- 01/12/2004
Application
AUTH 3.1.1
See Notes
- 03/09/2001
Purpose
AUTH 3.1.2
See Notes
- 03/09/2001
AUTH 3.2
Introduction
- 01/12/2004
AUTH 3.2.1
See Notes
AUTH 3.2.2
See Notes
- 03/09/2001
AUTH 3.3
When is Part IV permission required and what does it contain?
- 01/12/2004
AUTH 3.3.1
See Notes
AUTH 3.3.2
See Notes
- 03/09/2001
AUTH 3.3.3
See Notes
- 03/09/2001
AUTH 3.3.4
See Notes
- 03/09/2001
AUTH 3.3.5
See Notes
- 03/09/2001
AUTH 3.4
Activities
- 01/12/2004
AUTH 3.4.1
See Notes
AUTH 3.4.2
See Notes
- 03/09/2001
AUTH 3.4.3
See Notes
- 03/09/2001
AUTH 3.5
Specified investments
- 01/12/2004
AUTH 3.5.1
See Notes
AUTH 3.6
Limitations
- 01/12/2004
AUTH 3.6.1
See Notes
- 03/09/2001
AUTH 3.6.2
See Notes
- 03/09/2001
AUTH 3.6.3
See Notes
- 18/10/2001
AUTH 3.6.4
See Notes
AUTH 3.6.5
See Notes
AUTH 3.6.6
See Notes
- 03/09/2001
AUTH 3.7
Requirements
- 01/12/2004
AUTH 3.7.1
See Notes
- 03/09/2001
AUTH 3.7.2
See Notes
- 03/09/2001
AUTH 3.7.3
See Notes
- 13/02/2004
AUTH 3.7.4
See Notes
- 21/02/2002
AUTH 3.7.5
See Notes
- 03/09/2001
AUTH 3.7.6
See Notes
- 03/09/2001
AUTH 3.7.7
See Notes
AUTH 3.7.8
See Notes
- 03/09/2001
AUTH 3.8
The threshold conditions and financial resources
- 01/12/2004
The threshold conditions
AUTH 3.8.1
See Notes
- 03/09/2001
AUTH 3.8.2
See Notes
- 19/01/2003
AUTH 3.8.3
See Notes
- 03/09/2001
Financial resources
AUTH 3.8.4
See Notes
- 31/12/2004
AUTH 3.8.5
See Notes
- 27/04/2002
AUTH 3.8.6
See Notes
- 31/12/2004
AUTH 3.8.7
See Notes
AUTH 3.8.8
See Notes
- 31/12/2004
AUTH 3.9
Procedures in relation to applications for Part IV permission
- 01/12/2004
Pre-application meetings
AUTH 3.9.1
See Notes
- 01/07/2003
AUTH 3.9.2
See Notes
- 03/09/2001
The application for permission
AUTH 3.9.3
See Notes
- 01/07/2003
AUTH 3.9.4
See Notes
- 01/07/2003
AUTH 3.9.5
See Notes
- 03/09/2001
Information to be supplied to the FSA
AUTH 3.9.6
See Notes
- 03/09/2001
AUTH 3.9.7
See Notes
- 03/09/2001
AUTH 3.9.8
See Notes
- 03/09/2001
AUTH 3.9.9
See Notes
- 03/09/2001
AUTH 3.9.10
See Notes
- 03/09/2001
AUTH 3.9.11
See Notes
- 03/09/2001
AUTH 3.9.12
See Notes
- 01/07/2003
AUTH 3.9.13
See Notes
- 03/09/2001
AUTH 3.9.14
See Notes
- 01/07/2003
AUTH 3.9.15
See Notes
- 03/09/2001
Reports from third parties
AUTH 3.9.16
See Notes
- 03/09/2001
AUTH 3.9.17
See Notes
- 03/09/2001
AUTH 3.9.18
See Notes
- 03/09/2001
AUTH 3.9.19
See Notes
- 31/12/2004
AUTH 3.9.20
See Notes
- 03/09/2001
Applications to other bodies
AUTH 3.9.21
See Notes
- 03/09/2001
Connected persons
AUTH 3.9.22
See Notes
- 03/09/2001
AUTH 3.9.23
See Notes
- 03/09/2001
AUTH 3.9.24
See Notes
- 03/09/2001
Commencing regulated activities
AUTH 3.9.25
See Notes
- 01/07/2003
When will the FSA grant an application for Part IV permission?
AUTH 3.9.26
See Notes
- 03/09/2001
AUTH 3.9.27
See Notes
- 03/09/2001
AUTH 3.9.28
See Notes
- 01/07/2003
Other powers relating to the scope of Part IV permission
AUTH 3.9.29
See Notes
- 03/09/2001
How long will an application take?
AUTH 3.9.30
See Notes
- 03/09/2001
How will FSA make the decision?
AUTH 3.9.31
See Notes
Withdrawal of applications
AUTH 3.9.32
See Notes
- 03/09/2001
Authorised status
AUTH 3.9.33
See Notes
- 03/09/2001
AUTH 3.10
The FSA register
- 01/12/2004
AUTH 3.10.1
See Notes
- 03/09/2001
AUTH 3.11
Specific obligations: partnerships or unincorporated associations
- 01/12/2004
AUTH 3.11.1
See Notes
- 01/07/2003
AUTH 3.11.2
See Notes
- 03/09/2001
AUTH 3.11.3
See Notes
- 03/09/2001
AUTH 3.11.4
See Notes
- 01/07/2003
AUTH 3.12
Specific obligations: applicants seeking to carry on insurance business
- 01/12/2004
AUTH 3.12.1
See Notes
- 15/11/2001
AUTH 3.12.2
See Notes
- 31/12/2004
AUTH 3.12.3
See Notes
- 31/12/2004
AUTH 3.12.4
See Notes
- 03/09/2001
Friendly societies and reinsurance
AUTH 3.12.5
See Notes
- 03/09/2001
Contracts written on an ancillary and supplementary basis
AUTH 3.12.6
See Notes
- 03/09/2001
AUTH 3.12.7
See Notes
- 03/09/2001
AUTH 3.12.8
See Notes
- 03/09/2001
AUTH 3.12.9
See Notes
- 03/09/2001
AUTH 3.12.10
See Notes
- 03/09/2001
AUTH 3.12.11
See Notes
- 01/07/2003
AUTH 3.12.12
See Notes
- 03/09/2001
Reporting requirements
AUTH 3.12.13
See Notes
- 03/09/2001
Applicants seeking to carry on insurance business with a head office outside the United Kingdom (other than EEA firms or Treaty firms)
AUTH 3.12.14
See Notes
- 03/09/2001
AUTH 3.12.15
See Notes
- 31/12/2004
AUTH 3.12.16
See Notes
- 31/12/2004
AUTH 3.12.17
See Notes
- 31/12/2004
AUTH 3.13
Specific obligations: applicants seeking to carry on the regulated activities of accepting deposits or issuing electronic money
- 01/12/2004
AUTH 3.13.1
See Notes
- 27/04/2002
AUTH 3.14
Specific obligations: applicants seeking to hold or control client money
- 01/12/2004
AUTH 3.14.1
See Notes
- 03/09/2001
AUTH 3.14.2
See Notes
- 03/09/2001
AUTH 3.15
Specific obligations: applicants seeking to manage PEPS or ISAS
- 01/12/2004
AUTH 3.15.1
See Notes
- 03/09/2001
AUTH 3.15.2
See Notes
- 03/09/2001
AUTH 3.15.3
See Notes
AUTH 3.15.4
See Notes
AUTH 3.15.5
See Notes
- 03/09/2001
AUTH 3.16
Specific obligations: applicants seeking to establish, operate or wind up a stakeholder pension scheme
- 01/12/2004
AUTH 3.16.1
See Notes
AUTH 3.16.2
See Notes
- 03/09/2001
AUTH 3.17
Specific obligations: applicants seeking to establish a collective investment scheme or to act as manager of a regulated collective investment scheme
- 01/12/2004
AUTH 3.17.1
See Notes
- 01/04/2004
AUTH 3.17.2
See Notes
- 01/04/2004
AUTH 3.17.3
See Notes
- 01/04/2004
AUTH 3.17.4
See Notes
- 01/04/2004
AUTH 3.18
Specific obligations: additional considerations for applicants (other than EEA firms or Treaty firms) with a head office in a country of territory outside the United Kingdom seeking to establish a branch in the United Kingdom
- 01/12/2004
AUTH 3.18.1
See Notes
- 03/09/2001
AUTH 3.18.2
See Notes
- 03/09/2001
AUTH 3.18.3
See Notes
- 31/12/2004
AUTH 3.18.4
See Notes
- 03/09/2001
AUTH 3.19
Specific obligations: applications in connection with group-restructuring
- 01/12/2004
AUTH 3.19.1
See Notes
- 03/09/2001
AUTH 3.19.2
See Notes
- 01/07/2003
AUTH 3.19.3
See Notes
- 01/07/2003
AUTH 3.19.4
See Notes
- 03/09/2001
AUTH 3.20
Specific obligations: applicants seeking to establish a branch in, or provide services into, another EEA State
- 01/12/2004
AUTH 3.20.1
See Notes
- 03/09/2001
AUTH 3.20.2
See Notes
- 01/07/2003
AUTH 3.20.3
See Notes
- 01/04/2004
AUTH 3.20.4
See Notes
- 01/07/2003
AUTH 3.20.5
See Notes
- 03/09/2001
AUTH 3.21
Treaty firms applying for Part IV Permission
- 01/12/2004
AUTH 3.21.1
See Notes
- 21/02/2002
AUTH 3.21.2
See Notes
- 21/02/2002
AUTH 3.21.3
See Notes
- 21/02/2002
AUTH 3.21.4
See Notes
- 01/07/2003
AUTH 3.22
Specific issues: applicants that are limited partnerships under the Limited Partnerships Act 1907
- 01/12/2004
AUTH 3.22.1
See Notes
- 01/07/2003
AUTH 3.22.2
See Notes
- 01/07/2003
AUTH 3.22.3
See Notes
- 01/04/2004
AUTH 3.22.4
See Notes
- 01/07/2003
AUTH 3.22.5
See Notes
- 01/07/2003
AUTH 3.23
Specific issues: applicants that are limited liability partnerships
- 01/12/2004
AUTH 3.23.1
See Notes
- 01/07/2003
AUTH 3.23.2
See Notes
- 01/07/2003
AUTH 3.23.3
See Notes
- 01/07/2003
AUTH 3.23.4
See Notes
- 01/07/2003
AUTH 3.23.5
See Notes
- 01/07/2003
AUTH 3.24
Specific obligations: applicants wishing to operate an ATS
- 01/12/2004
AUTH 3.24.1
See Notes
- 01/04/2004
AUTH 3 Annex 1
Application for Part IV Permission
- 01/12/2004
AUTH 3 Annex 1.1
See Notes
AUTH 3 Annex 2
- 01/12/2004
AUTH 3 Annex 2.1
See Notes
CHAPTER OF IPRU(INV) THAT REQUIREMENT ON PERMISSION REQUIRES THE FIRM TO COMPLY WITH | FIRM'S PRUDENTIAL CATEGORY |
Chapter 3 | Securities and futures firm |
Chapter 5 | Investment management firm |
Chapter 10 | Securities and futures firm |
Chapter 13 | Personal investment firm |
The table below shows how a firm's main regulated activities determine its prudential category. A firm's 'main regulated activities' in this context are the regulated activities included in the firm's Part IV permission from which the firm derives or is expected to derive the most substantial part of its gross income, including commissions. The aggregate gross income from all of the activities listed against each prudential category should be considered to determine which source is the most substantial. The gross income is based on the business plan submitted as part of the firm's application for a Part IV permission. |
ACTIVITIES FROM WHICH THE MOST SUBSTANTIAL PART OF THE FIRM'S GROSS INCOME, INCLUDING COMMISSIONS, FROM REGULATED ACTIVITIES IS DERIVED | FIRM'S PRUDENTIAL CATEGORY |
(i) Managing investments other than for private customers or where the assets managed are primarily derivatives; (ii) OPS activity; (iii) acting as the manager or trustee of an AUT; (iv) acting as the ACD or depositary of an ICVC; (v) establishing, operating or winding up a collective investment scheme other than an AUT or ICVC; and (vi) safeguarding and administering investments. |
Investment management firm |
(i) Advising on investments, or arranging (bringing about) deals in investments in relation to, packaged products; and (ii) managing investments for private customers. |
Personal investment firm |
ACTIVITIES FROM WHICH THE MOST SUBSTANTIAL PART OF THE FIRM'S GROSS INCOME, INCLUDING COMMISSIONS, FROM REGULATED ACTIVITIES IS DERIVED | FIRM'S PRUDENTIAL CATEGORY |
(i) An activity carried on as a member of an exchange; (ii) making a market in securities or derivatives; (iii) corporate finance business; (iv) dealing, or arranging (bringing about) deals in investments, in securities or derivatives; (v) the provision of clearing services as a clearing firm; (vi) managing investments where the assets managed are primarily derivatives; and (vii) activities relating to spread bets; |
|
Securities and futures firm |
- 27/04/2002
AUTH 3 Annex 3
Determination of an applicant's prudential category
- 01/12/2004
AUTH 3 Annex 3.1
See Notes
- 03/09/2001
AUTH 4
Authorisation
Fees
AUTH 4.1
Introduction
- 01/12/2004
Application
AUTH 4.1.1
See Notes
- 01/01/2002
AUTH 4.1.2
See Notes
- 01/01/2002
Purpose
AUTH 4.1.3
See Notes
- 01/01/2002
Background
AUTH 4.1.4
See Notes
- 01/01/2002
AUTH 4.1.5
See Notes
- 01/04/2004
AUTH 4.1.5A
See Notes
- 01/01/2004
AUTH 4.1.6
See Notes
- 01/01/2002
AUTH 4.1.7
See Notes
- 01/11/2003
AUTH 4.1.7A
See Notes
- 01/01/2004
AUTH 4.1.8
See Notes
- 01/01/2002
AUTH 4.1.9
See Notes
- 01/01/2002
AUTH 4.1.10
See Notes
- 01/01/2002
AUTH 4.2
Obligation to Pay Authorisation Fees
- 01/12/2004
- Future version of AUTH 4.2 after 31/12/2005
General
AUTH 4.2.1
See Notes
- 01/11/2003
Amount
AUTH 4.2.2
See Notes
- 01/11/2003
AUTH 4.2.3
See Notes
- 01/01/2002
Due date and method of payment
AUTH 4.2.4
See Notes
- 01/01/2002
AUTH 4.2.5
See Notes
- 01/03/2003
Modification for certain Treaty firms
AUTH 4.2.6
See Notes
- 01/01/2002
AUTH 4.2.7
See Notes
- 01/01/2002
AUTH 4.3
Obligation to pay certification fees
- 01/12/2004
General
AUTH 4.3.1
See Notes
- 15/11/2001
Due date and method of payment
AUTH 4.3.2
See Notes
- 15/11/2001
AUTH 4.3.3
See Notes
- 15/11/2001
AUTH 4 Annex 1
Authorisation fees payable
- 01/12/2004
See Notes
Application type (see Part 2) | Amount payable |
(a) Credit unions - registration of common bond | £200 |
(b) Version 1 credit unions - authorisation | £300 |
(c) Version 2 credit unions - authorisation | £1,800 |
(d) Straightforward | £1,500 |
(e) Moderately complex | £5,000 |
(f) Complex | £25,000 |
Straightforward cases | |
Activity grouping | Description |
A.3 | Friendly societies only |
A.4 | Friendly societies only |
A.12 | Advisory arrangers, dealers or brokers (holding or controlling client money and/or assets) |
A.13 | Advisory only firms and advisory arrangers, dealers or brokers (not holding or controlling client money and/or assets) |
A.14 | Corporate finance advisers |
A.18 | Mortgage lenders, advisers and arrangers (excluding mortgage lenders) |
A.19 | General insurance mediation |
Moderately complex cases | |
Activity grouping | Description |
A.1 | E-money issuers only |
A.2 | Mortgage lenders and administrators |
A.5 | Managing agents at Lloyd's |
A.7 | Fund managers |
A.9 | Operators, trustees and depositaries of collective investment schemes |
A.10 | Firms dealing as principal |
B. | Service companies |
Complex cases | |
Activity grouping | Description |
A.1 | Deposit acceptors (excluding e-money issuers and credit unions) |
A.3 | Insurers - general (excluding friendly societies) |
A.4 | Insurers - life (excluding friendly societies) |
The fee payable under SUP 6.3.22 R is 50% of that payable under AUTH 4.2.2 R.There are no circumstances specified for the purposes of SUP 6.3.22 R (2). |
If the Treaty firm wishes to
undertake the permitted activities in question through its branch in the United Kingdom, the fee
is 50% of the fee that would be payable under AUTH
4.2.2 R. If the Treaty firm wishes to undertake the permitted activities in question by providing services in the United Kingdom, the fee is 25% of the fee which would be payable under AUTH 4.2.2 R. |
The activity group definitions are set out in SUP 20 Annex 1. |
The amount payable in relation to each application is £2,000. |
- 03/09/2001
AUTH 4 Annex 2
Authorisation fees payable in relation to the A.2 and A.18 activity groups up to and including 30 October 2004 and the A.19 activity group up to and including 13 January 2005
- 01/12/2004
See Notes
Note: This annex specifies the application fees for applicants seeking to apply for Part IV permission, or to vary their existing Part IV permission, in order to undertake any of the activities specified in the A.2, A.18 and A.19 activity groups (see Part 1 of SUP 20 Annex 1 for details of the activities). |
For the permitted activities included in the A.2 and A.18 activity groups, regulation commences on 31 October 2004. Regulation commences on 14 January 2005 for the permitted activities included in the A.19 activity group. |
The fee rules set out in this annex will apply from the beginning of the application period until regulation of these permitted activities commences. At that time, these rules will cease to have effect and application fees for these types of permitted activities will be dealt with alongside the other authorisation fees as part of AUTH 4 Annex 1. |
1. For the A.2
and A.18 activity groups, these rates apply up to and including 30 October
2004. 2. For the A.19 activity group, these rates apply up to and including 13 January 2005. |
Activity group | Amount payable | |||||
Fee bands | Fee - early applications | Fee - other applications | Discount - electronic applications | Discount - non-electronic applications paying by direct debit | ||
Band no. | Band | |||||
A.2 Mortgage lenders and administrators | 1 2 3 4 | Gross advances
(£m) 0-10 >10-100 >100-1,000 >1,000 | Fee (?) 600 8,000 13,000 23,000 | Fee (?) 1,200 10,000 15,000 25,000 | Discount
(£) 100 250 250 500 | Discount
(£) 50 50 50 50 |
A.18 Mortgage
lenders, advisers and arrangers; and A.19 General insurance mediation | 5 6 7 8 | Annual income
(£m) 0 - 1 >1-3 >3-25 >25 | Fee (?) 600 4,250 9,000 23,000 | Fee (?) 1,200 5,750 11,000 25,000 | Discount (£) 100 250 250 500 | Discount (£) 50 50 50 50 |
(1) | An early application is an application lodged: | |||
(a) | for A.2 or A.18 applications, before 1 April 2004; and | |||
(b) | for A.19 applications, before 1 June 2004. | |||
(2) | For the purposes of this table: | |||
(a) | ||||
An electronic application is one submitted via the electronic facility provided by the FSA for these purposes. | ||||
(b) | Gross advances means the value of all new mortgage advances made (not the total mortgage balances outstanding) including loans for house purchase, remortgages, further advances and top-up loans, in the 12 months to 31 December 2003; PLUS | |||
the value of all new mortgages administered (not the total mortgage balances outstanding) including loans for house purchase, remortgages, further advances and top-up loans, in the 12 months to 31 December 2003, multiplied by 0.5. | ||||
Note: For this purpose, a mortgage is a contract for a loan secured by a first charge over residential property in the United Kingdom. | ||||
(3) | For the purposes of this table, annual income means: | |||
(a) | the net amount retained by the firm of all brokerages, fees, commissions and other related income (e.g. administration charges, overriders, profit shares) due to the firm in respect of or in relation to: | |||
(i) | activities which would be mortgage mediation activity if they had been carried out after 30 October 2004; PLUS | |||
(ii) | activities which would be insurance mediation activity (in relation to general insurance contracts or pure protection contracts) if they had been carried out after 13 January 2005; | |||
earned in its latest financial year ending on or before 31 December 2003; | ||||
PLUS | ||||
(b) | (i) | in relation to the activities set out in (a)(i), for any mortgage mediation activity carried out by the firm for which it receives payment from the lender on a basis other than that in (a), the value of all new mortgage advances resulting from that activity multiplied by 0.004; | ||
PLUS | ||||
(ii) | If the firm is a mortgage lender, the value of all new mortgage advances which would be regulated mortgage contracts if they had been made after 30 October 2004 (other than those made as a result of mortgage mediation activity by another firm), multiplied by 0.004; | |||
for its latest financial year ending on or before 31 December 2003; | ||||
PLUS | ||||
(c) | in relation to the activities set out in (a)(ii): | |||
(i) | for any insurance mediation activity carried out by the firm for which it receives payment from the insurer on a basis other than that in (a), the amount of premiums receivable on the contracts of insurance resulting from that activity multiplied by 0.07; PLUS | |||
(ii) | if the firm is an insurer, the amount of premiums receivable on its contracts of insurance multiplied by 0.07, excluding those contracts of insurance which: | |||
(aa) | result from insurance mediation activity by another firm, where a payment has been made by the insurer to the firm under (a); or | |||
(ab) | the insurer reports, and pays a fee on, in the A.4 activity group; or | |||
(ac) | are not general insurance contracts or pure protection contracts; | |||
for its latest financial year ending on or before 31 December 2003. | ||||
The firm must include in its income calculation, on the same basis as above, earnings from those who will become its appointed representatives immediately after authorisation. | ||||
In note (3), a reference to a "firm" also includes reference to any person who carried out activities which would be; | ||||
(1) | mortgage mediation activity if they had been carried out after 30 October 2004; or | |||
(2) | insurance mediation activity (in respect of general insurance contracts or pure protection contracts) if they had been carried out after 13 January 2005. |
3. | The activity group definitions are set out in SUP 20 Annex 1. |
- 03/09/2001
AUTH 5
Qualifying for authorisation under the Act
AUTH 5.1
Application and purpose
- 01/12/2004
AUTH 5.1.1
See Notes
AUTH 5.1.2
See Notes
- 21/08/2002
AUTH 5.1.3
See Notes
- 01/12/2001
Purpose
AUTH 5.1.4
See Notes
- 01/12/2001
AUTH 5.1.5
See Notes
- 21/02/2002
AUTH 5.2
EEA firms and Treaty firms
- 01/12/2004
AUTH 5.2.1
See Notes
- 01/12/2001
AUTH 5.2.2
See Notes
- 01/12/2001
AUTH 5.3
Qualification for authorisation under the Act
- 01/12/2004
EEA firms
AUTH 5.3.1
See Notes
- 01/12/2001
AUTH 5.3.2
See Notes
- (1) On qualifying for authorisation, subject to AUTH 5.3.2 G (1A), an EEA firm will have permission to carry on each permitted activity (see (2) below) which is a regulated activity:
- (a) through its UK branch (if it satisfies the establishment conditions); or
- (b) by providing cross border services into the United Kingdom (if it satisfies the service conditions).
- (1A)
- (a) Paragraph (1) does not apply to the activity of dealing in units in a collective investment scheme in the United Kingdom where:
- (i) the firm is an EEA UCITS management company;
- (ii) the firm satisfies the establishment conditions in AUTH 5.4.2 G; and
- (iii) the FSA notifies the EEA firm and the EEA firm's Home State regulator that the way in which it intends to market a relevant scheme in the United Kingdom does not comply with the law in force in the United Kingdom.
- (b) The FSA's notice under (1A)(a)(iii) has to be given to the EEA firm within two months of receiving the consent notice (AUTH 5.4.2 G(1)) and will be similar to a warning notice.
- (c) For details of the FSA's procedures for the giving of warning notices and references to the Tribunal, see DEC 2.2 (Statutory notice procedure: Warning notice and decision notice procedure) and DEC 5 (References to the Tribunal, publication and services of notices).
- (2) The permitted activities of EEA firm are those activities identified in the consent notice, regulator's notice or notice of intention. Permitted activities may include activities that are within the scope of a Single Market Directive but which are unregulated activity in the United Kingdom.
- (3) Paragraph 15(2) of Part II of Schedule 3 to the Act states that this permission is treated as being on terms equivalent to those appearing in the consent notice, regulator's notice or notice of intention. For example, it will reflect any limitations or requirements which are included in the firm's Home State authorisation.
- 13/02/2004
AUTH 5.3.3
See Notes
- 01/12/2001
Treaty firms
AUTH 5.3.4
See Notes
- 01/12/2001
AUTH 5.3.5
See Notes
- 01/12/2001
AUTH 5.3.6
See Notes
- 01/12/2001
AUTH 5.3.7
See Notes
- 01/12/2001
AUTH 5.3.8
See Notes
- 01/12/2001
AUTH 5.3.9
See Notes
- 01/07/2003
AUTH 5.3.10
See Notes
- 01/07/2003
AUTH 5.3.11
See Notes
- 01/07/2003
AUTH 5.3.12
See Notes
AUTH 5.3.13
See Notes
- 01/07/2003
UCITS qualifiers
AUTH 5.3.14
See Notes
- 01/12/2001
AUTH 5.3.15
See Notes
- 01/07/2003
AUTH 5.3.16
See Notes
- 01/04/2004
AUTH 5.4
EEA firms establishing a branch in the United Kingdom
- 01/12/2004
What constitutes a branch?
AUTH 5.4.1
See Notes
- 01/12/2001
The conditions for establishing a branch
AUTH 5.4.2
See Notes
- 01/12/2001
AUTH 5.4.3
See Notes
- 01/12/2001
The notification procedure
AUTH 5.4.4
See Notes
- 01/12/2001
AUTH 5.5
EEA firms providing cross border services into the United Kingdom
- 01/12/2004
Is the service provided within the United Kingdom?
AUTH 5.5.1
See Notes
- 01/12/2001
AUTH 5.5.2
See Notes
- 01/12/2001
The conditions for providing cross border services into the United Kingdom
AUTH 5.5.3
See Notes
- 01/12/2001
The notification procedure
AUTH 5.5.4
See Notes
- 01/12/2001
AUTH 5.5.5
See Notes
- 01/12/2001
AUTH 5.6
Which rules will an incoming EEA firm be subject to?
- 01/12/2004
AUTH 5.6.1
See Notes
- 01/12/2001
AUTH 5.6.2
See Notes
- 01/12/2001
AUTH 5.6.3
See Notes
- 01/12/2001
AUTH 5.6.4
See Notes
- 01/12/2001
AUTH 5.6.5
See Notes
- 01/12/2001
AUTH 5.7
Top-up permission
- 01/12/2004
AUTH 5.7.1
See Notes
- 01/12/2001
AUTH 5.7.2
See Notes
- 01/12/2001
AUTH 5.7.3
See Notes
- 01/12/2001
AUTH 5.7.4
See Notes
- 01/12/2001
AUTH 5.8
Sources of further information
- 01/12/2004
AUTH 5.8.1
See Notes
For further information on UK regulation, an EEA firm, aTreaty firm or a UCITS qualifier should contact the Authorisation and Approvals Department (Authorisation Enquiries) at the FSA. Questions about the passporting notification procedures can be addressed to the Passport Notification Unit.
- (1) To contact the Authorisation Enquiries team:
- (a) telephone on +44 20 7066 0082 or fax on +44 20 7066 9719;
- (b) write to: Authorisation and Approvals Department (Authorisation Enquiries), The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.
- (2) To contact the Passport Notification Unit:
- (a) telephone on +44 20 7066 1000 or fax on +44 20 7066 xxxx;
- (b) write to: Passport Notification Unit, The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS;
- (c) email: passport.notifications@ fsa.gov.uk.
- 01/12/2001
AUTH 5 Annex 1
Establishment of a branch: Contents of Consent Notice G
- 01/12/2004
See Notes
Type of firm | Para No. | Contents of consent notice (Regulation 2) | |
Investment firm | (2)(a) | a statement that the firm is an investment firm; | |
(b) | the requisite details of the branch (see SUP 13 Annex 1 ); | ||
(c) | details of any compensation scheme which is intended to protect the branch's investors. | ||
EEA UCITS management company | (2A)(a) | a statement that the firm is an EEA UCITS management company; | |
(b) | the requisite details of the branch; and | ||
(c) | details of any compensation scheme which is intended to protect the branch's investors. | ||
Credit institution
or | (3)(a) | a statement that the firm is a credit institution; | |
(b) | the requisite details of the branch (see SUP 13 Annex 1 ); | ||
(c) | the amount of the firm's own funds (as defined in Section 1 of Chapter 2 of Title V to the Banking Consolidation Directive); and | ||
(d) | the solvency ratio of the firm (calculated in accordance with the Banking Consolidation Directive). | ||
Financial institution | (4)(a) | a statement that: | |
(i) | the firm is a financial institution; | ||
(ii) | the firm is a subsidiary undertaking of a credit institution which is authorised in the EEA State in question and which holds at least 90 per cent of the voting rights in the firm (and for the purpose of this paragraph any two or more credit institutions which are authorised in that EEA State and hold voting rights in the firm are to be treated as a single credit institution, and as being "parent undertakings" of the firm); | ||
(iii) | the firm carries on in that EEA State the EEA activities in question; | ||
(iv) | the memorandum and articles of association, or other constituent instrument, of the firm permit it to carry on those activities; | ||
(v) | the consolidated supervision of the firm's parent undertaking or, if more than one of them, any one of them effectively includes supervision of the firm; | ||
(vi) | the firm's parent undertaking has guaranteed or, if more than one, they have jointly and severally guaranteed, the firm's obligations, with the consent of the Home State regulator; | ||
(vii) | the firm's business is being conducted in a prudent manner. | ||
(b) | the requisite details of the branch (see SUP 13 Annex 1 ); | ||
(c) | the amount of the firm's own funds (as defined in Section 1 of Chapter 2 of Title V to the Banking Consolidation Directive); | ||
(d) | the solvency ratio of the firm's parent undertaking (calculated in accordance with the Banking Consolidation Directive). | ||
Insurance undertaking | (5)(a) | a scheme of operations prepared in accordance with such requirements as may be imposed by the firm's Home State regulator, setting out (among other things) the types of business to be carried on and the structural organisation of the branch; | |
(b) | the name of the firm's authorised agent; | ||
(c) | the address in the United Kingdom from which information about the business may be obtained, and a statement that this is the address for service on the firm's authorised agent; | ||
(d) | in the case of a firm which intends to cover relevant motor vehicle risks, a declaration by the firm that it has become a member of the Motor Insurers' Bureau (being a company limited by guarantee and incorporated under the Companies Act 1929(1) on 14 th June 1946); and | ||
(e) | a statement by the firm's Home State regulator attesting that the firm has the minimum margin of solvency calculated in accordance with such of the following as are appropriate: | ||
(i) | articles 16 and 17 of the First Non-Life Insurance Directive; and; | ||
(ii) | articles 18, 19 and 20 of the First Life Insurance Directive. |
- 13/02/2004
AUTH 5 Annex 2
Provision of services: Contents of regulator's notice G
- 01/12/2004
See Notes
Type of firm | Para No. | Contents of regulator's notice (Regulation 3) | |
Investment firm | (2)(a) | a statement that the firm is an investment firm; and | |
(b) | particulars of the programme of operations to be carried on in the United Kingdom including a description of the particular activities which the firm is seeking to carry on in the United Kingdom in the exercise of an EEA right. | ||
EEA UCITS management company | (2A)(a) | a statement that the firm is an EEA UCITS management company; | |
(b) | particulars of the programme of operations to be carried on in the United Kingdom including a description of the particular activities which the firm is seeking to carry on in the United Kingdom in the exercise of an EEA right; and | ||
(c) | details of any compensation scheme which is intended to protect the branch's investors. | ||
Insurance undertaking | (3)(a) | a statement of the classes of business which the firm is authorised to carry on in accordance with Article 6 of the First Non-Life Directive or Article 6 of the First Life Directive; | |
(b) | the name and address of the firm; | ||
(c) | the nature of the risks or commitments which the firm proposes to cover in the United Kingdom; | ||
(d) | in the case of a firm which intends to cover relevant motor vehicle risks: | ||
(i) | the name and address of the claims representative (Note); and | ||
(ii) | a declaration by the firm that it has become a member of the Motor Insurers' Bureau (being a company limited by guarantee and incorporated under the Companies Act 1929 (1) on 14 th June 1946); and | ||
(e) | a statement by the firm's Home State regulator attesting that the firm has a minimum margin of solvency calculated in accordance with such of the following as are appropriate: | ||
(i) | articles 16 and 17 of the First Non-Life Insurance Directive ; and | ||
(ii) | article 18, 19 and 20 of the First Life Insurance Directive | ||
Insurance intermediary | (4) | that the firm intends to carry on insurance mediation or reinsurance mediation by providing services in the United Kingdom. |
- 13/02/2004
AUTH 5 Annex 3
Application of the Handbook to Incoming EEA Firms G
- 01/12/2004
See Notes
1. | The table below summarises the application of the Handbook to an incoming EEA firm. Where the table indicates that a particular module of the Handbook may apply, its application in relation to any particular activity is dependent on the detailed application provisions in that module. The table does not apply to incoming ECA providers. These should refer to ECO 1 for guidance on how the Handbook applies to them. |
2. | In some cases, the application of the Handbook depends on whether responsibility for a matter is reserved under a European Community instrument to the incoming EEA firm's Home State regulator. Guidance on the reservation of responsibility is contained in SYSC App 1 (Matters reserved to a Home State regulator). |
3. | For an incoming EEA firm which has permission for cross-border services only, many parts of the Handbook apply only if the firm carries on regulated activities in the United Kingdom. Those parts of the Handbook will therefore not apply if the firm confines its activities to those within the overseas persons exclusions in article 72 of the Regulated Activities Order, or which would not be regarded as carried on in the United Kingdom. Further guidance may be found in AUTH 2.4 (Link between activities and the United Kingdom) and AUTH 2.9.15 G to AUTH 2.9.17 G (Overseas persons). |
(1) Module of Handbook | (2) Potential application to an incoming EEA firm with respect to activities carried on from an establishment of the firm (or its appointed representative) in the United Kingdom | (3) Potential application to an incoming EEA firm with respect to activities carried on other than from an establishment of the firm (or its appointed representative) in the United Kingdom |
PRIN | The Principles apply only in so far as responsibility for the matter in question is not reserved by a European Community instrument to the firm's Home State regulator (PRIN 3.1.1 R). For an incoming EEA firm which is a BCD credit institution without a top-up permission, Principle 4 applies only in relation to the liquidity of a branch established in the United Kingdom (PRIN 3.1.1 R (2)). |
The Principles do not apply if the firm has permission only for cross-border services and does not carry on regulated activities in the United Kingdom (PRIN 3.1.1 R (2)). The Principles have limited application for activities which are not carried on from a UK establishment (see PRIN 3.3.1 R). Otherwise, see column (2). |
SYSC | SYSC 1 contains application provisions only. SYSC 2 and SYSC 3 apply as set out in SYSC 1.1.1 R (1): (1) SYSC 2.1.1 R and SYSC 2.1.2 G do not apply; (2) SYSC 2.1.3 R to SYSC 2.2.3 G apply, but only in relation to allocation of the function in SYSC 2.1.3 R (2) and only in so far as responsibility for the matter in question is not reserved by a European Community instrument to the firm's Home State regulator; and (3) SYSC 3 applies, but only in so far as responsibility for the matter in question is not reserved by a European Community instrument to the firm's Home State regulator. SYSC 1.1.7 R (Where?) further restricts the territorial application of SYSC 1 to SYSC 3 for an incoming EEA firm. Further guidance is contained in SYSC 2.1.6 G, Question 12. SYSC 4 applies to the extent that the Public Interest Disclosure Act 1998 applies to the firm. |
SYSC 1 to SYSC 3 do not apply if the firm has permission only for cross-border services and does not carry on regulated activities in the United Kingdom (SYSC 1.1.1 R (2)). SYSC 1 to SYSC 3 have limited application for activities which are not carried on from a UK establishment (see SYSC 1.1.7 R). Otherwise, see column (2). |
COND | COND does not apply if the firm does not have, or apply for, a top-up permission. Otherwise, only threshold conditions 1, 3, 4 and 5 apply and only in so far as relevant to: (1) an application for a top-up permission under Part IV of the Act (that is, a permission to carry on regulated activities in addition to those permitted through its authorisation under Schedule 3 to the Act (EEA Passport Rights)); and (2) the exercise of the FSA's own-initiative power in relation to the top-up permission. (COND 1.1.1 G.) |
As column (2). |
APER | APER applies to approved persons (APER 1.1.1 G). See below under SUP 10 as to whether controlled functions are performed, and approval therefore required. | Not relevant because SUP 10 does not apply. |
FIT | FIT applies to a firm wishing to establish a branch in the United Kingdom or to apply for a top-up permission in respect of any application that it makes for the approval of a person to perform a controlled function (FIT 1.1). See under SUP 10 below as to whether such approval is required. | Does not apply. |
GEN | GEN applies (GEN 1.1, GEN 2.1, GEN 3.1, GEN 4.1, GEN 5.1 and GEN 6.1). However, (a) GEN 4 does not apply to the extent that the firm is subject to equivalent rules imposed by its Home State (4.1.1 R (3)) and (b) GEN 6 only applies to business that can be regulated under section 138 of the Act (General rule-making power). It does not therefore apply if, or to the extent that, responsibility has been reserved to an incoming firm's Home State regulator by a European Community instrument. | GEN 4 does not apply if the firm has permission only for cross-border services and does not carry on regulated activities in the United Kingdom. Otherwise, as column (2). |
IPRU(BANK) | Only the following apply, and only if the firm is a credit institution other than an electronic money institution within the meaning of article 1(3)(a) of the E-Money Directive that has the right to benefit from the mutual recognition arrangements under the Banking Consolidation Directive (IPRU(BANK) 3.2.1R): (1) IPRU(BANK) 3.3.15R, IPRU(BANK) 3.3.16G and IPRU(BANK) 3.5.1R; and (2) chapter CO (which provides an overview of the underlying policy) and the more detailed guidance in chapters CB, CA, BC, BO, FX, CM, DU, TI, TE, TC, TL, TU, TS and TV. |
Does not apply. But if the firm is a credit institution whose notification to the FSA of its intention to provide services in the United Kingdom covers services provided through a branch, see column (2). |
IPRU(BSOC) | Does not apply because an incoming EEA firm cannot be a building society (IPRU(BSOC) X.2.1R). | Does not apply because an incoming EEA firm cannot be a building society (IPRU(BSOC) X.2.1R). |
IPRU(FSOC) | Does not apply because an incoming EEA firm cannot be a friendly society (IPRU(FSOC) 1.1). | Does not apply because an incoming EEA firm cannot be a friendly society (IPRU(FSOC) 1.1). |
IPRU(INS) | Only IPRU(INS) 3.6 and 3.7 (Linked long-term contracts) apply, and only if the firm is an insurer (IPRU(INS) 1.1(b)). | As column (2). |
IPRU(INV) | IPRU(INV) does not apply unless the firm: (1) has a top-up permission; (2) is an authorised professional firm, investment management firm, members' adviser, personal investment firm, securities and futures firm, service company or underwriting agent; and (3) is not a lead regulated firm or a media firm. (IPRU(INV) 1.1.1R and 1.2R) |
As column (2). |
PRU | PRU 9.1 (Responsibility for insurance mediation activity) does not apply unless the firm has a top-up permission. PRU 9.2 (Professional indemnity insurance requirements for insurance and mortgage mediation activity and mortgage lending and administration) does not apply unless the firm has a top-up permission. |
As column (2). As column (2). |
PRU | PRU 9.3 (Capital resources for insurance and mortgage mediation activity and mortgage lending and administration) does not apply unless the firm has a top-up permission. See PRU 9.3.2 G for more detailed guidance. PRU 9.4 (Insurance undertakings and mortgage lenders using insurance or mortgage mediation services) does not apply unless the firm has a top-up permission. Otherwise, PRU does not apply unless the firm is an insurer to which PRU 7.6.33 R applies |
As column (2). As column (2). |
COB | COB applies. | Where the activity: (1) (a) would fall within the overseas persons exclusions in article 72 of the Regulated Activities Order; or (b) would not be regarded as carried on in the United Kingdom; or (c) is not carried on with or for a client in the United Kingdom; then only the following apply: (d) COB 3 (Financial promotion), but see the territorial scope in COB 3.3 (Where?); (e) COB 5.5.7 R (Overseas business);and (f) certain parts of COB 6 (Product disclosure and the customer's right to cancel or withdraw) but only in relation to long-term insurance business carried on with a customer habitually resident in the United Kingdom or if the State of the risk is the FSA (see COB 1.4.7 R and COB 1.4.8 R); and (g) (i) COB 4.3.19 R to COB 4.3.25 R save that the firm must also comply with those rules as if they also applied to a firm carrying out the activities in COB 4.3.19R (1) with or on behalf of all private customers; (ii) COB 5.2.12 R to COB 5.2.14 R; and (iii) COB 5.3.18 R (1) and COB 5.3.18A R to COB 5.3.18C R; but only in relation to activities passported under the IMD (see COB 1.4.12R (3)); (2) concerns a distance contract and is carried on with retail customers in the United Kingdom from an establishment maintained by the firm in an EEA State which: (a) has implemented the DMD; or (b) has obligations in its domestic law corresponding to those provided for by the DMD; COB 4.2, COB 5, and COB 6 do not apply. Otherwise, as column (2), (COB 1.4.3 R). |
ICOB | ICOB applies. | Only the following provisions of ICOB apply: (a) ICOB 3 (Financial promotion), but see the territorial scope in ICOB 3.4 (Application: where?) (b) ICOB 5.5.20 R, but only in relation to general insurance contracts if the state of the risk is the United Kingdom; (c) ICOB 5.5.20 Rand ICOB 5.5.20 R, but only in respect of non-investment insurance contracts which are pure protection contracts where the habitual residence of the customer, other than an EEA ECA recipient, is in the United Kingdom; (d) ICOB 6 (Cancellation), but only in respect of non-investment insurance contracts which are pure protection contracts where the habitual residence of the customer, other than an EEA ECA recipient, is in the United Kingdom. |
CASS | CASS does not apply with respect to the firm's passported activities unless the firm is an insurer (CASS 1.2.3 R (2)). | As column (2). |
MAR | MAR 1 (Code of market conduct) Applies if the firm is seeking guidance as to whether or not behaviour amounts to market abuse (MAR 1.1.1 G). |
MAR 1 (Code of market conduct) As column (2). |
MAR 2 (Price stabilising rules) Applies if the firm undertakes stabilising action and wishes to show that it has acted in conformity with price stabilising rules, or that its behaviour conforms with rules in accordance with section 118(8)of the Act (Market abuse) (MAR 2.1 Application)) |
MAR 2 (Price stabilising rules) Only applies in so far as the firm undertakes stabilising action and wishes to rely on a defence that it has acted in conformity with price stabilising rules, or that its behaviour conforms with rules in accordance with section 118(8)of the Act (Market abuse) (MAR 2.1.6 R (1) |
|
MAR 3 (Inter-professional conduct) Applies (MAR 3.1.4 R). |
MAR 3 (Inter-professional conduct) Does not apply (MAR 3.1.4 R). |
|
MAR 4 (Endorsement of the Take-over Code) Applies to firms whose permission includes, or ought to include, any designated investment business, except as set out in MAR 4.4.1 R. |
MAR 4 (Endorsement of the Take-over Code) Does not apply (MAR 4.4.1 R (4)(b)). |
|
MAR 5 (Alternative Trading Systems) Does not apply (MAR 5.1.1 R). |
MAR 5 (Alternative Trading Systems) Does not apply (MAR 5.1.1 R). |
|
TC | TC applies, but only in so far as responsibility for any matter it covers is not reserved by a European Community instrument to the firm's Home State regulator. | TC 1 (Commitments): (1) contains guidance relevant to compliance with Principle 3, satisfaction of threshold condition 5 and the fit and proper test for approved persons; it is therefore relevant only if they apply to the firm (see the guidance on application of PRIN, COND and FIT above); (2) in particular, does not therefore apply if the firm has permission only for cross-border services and does not carry on regulated activities in the United Kingdom. TC 2 (Rules and guidance) does not apply (TC 2.1.2 R (2)). |
ML | Applies (ML 1.1.2 R). | Does not apply (ML 1.1.2 R). |
AUTH | AUTH applies to the firm if it: (1) is considering carrying on activities in the United Kingdom which may fall within the scope of the Act and is seeking guidance on whether it needs a top-up permission; or (2) is, or is considering, applying to the FSA to carry on regulated activities in the United Kingdom under a top-up permission; or (3) is, or is considering, establishing a branch or providing cross-border services into the United Kingdom using EEA rights. |
As column (2). |
SUP | SUP 1 (The FSA's approach to supervision) Applies, but contains only guidance. |
SUP 1 (The FSA's approach to supervision) As column (2). |
SUP 2 (Information gathering by the FSA on its own initiative) The application of this chapter is the same as for Principle 11 (see under PRIN above). |
SUP 2 (Information gathering by the FSA on its own initiative) As column (2). |
|
SUP 3 (Auditors) Applies to the firm (and its auditor) only if the firm has a top-up permission. |
SUP 3 (Auditors) As column (2). |
|
SUP 4 (Actuaries) Does not apply. |
SUP 4 (Actuaries) Does not apply |
|
SUP 5 (Skilled persons) Applies only if the firm is required by the FSA to provide a report under section 166 of the Act (Reports by skilled persons). |
SUP 5 (Skilled persons) As column (2). |
|
SUP 6 (Applications to vary and cancel Part IV permission) Applies only if the firm has a top-up permission. |
SUP 6 (Applications to vary and cancel Part IV permission) As column (2). |
|
SUP 7 (Individual requirements) Applies only if the firm has a top-up permission. It contains only guidance on the exercise of the FSA's own-initiative power to vary that permission. The FSA has similar, but more limited, powers of intervention under Part XIII of the Act in relation to the permission of the firm under Schedule 3 to the Act (see ENF 4). |
SUP 7 (Individual requirements) As column (2). |
|
SUP 8 (Waiver and modification of rules) Applies only if the firm wishes to apply for, or consent to, or has been given, a waiver of the FSA's rules (SUP 8.1.1 R). |
SUP 8 (Waiver and modification of rules) As column (2). |
|
SUP 9 (Individual guidance) Applies only if the firm wishes to obtain individual guidance from the FSA or if the FSA gives the firm individual guidance on its own initiative (SUP 9.1.1 G). |
SUP 9 (Individual guidance) As column (2). |
|
SUP 10 (Approved persons) Applies, but the applicable controlled functions are limited. See SUP 10.1 (Application) for more detailed guidance. |
SUP 10 (Approved persons) Does not apply (SUP 10.1.6 R). |
|
SUP 11 (Controllers and close links) Does not apply (SUP 11.1.1 R (2)). |
SUP 11 (Controllers and close links) Does not apply (SUP 11.1.1 R (2)). |
|
SUP 12 (Appointed representatives) Applies only if the firm has permission to carry on designated investment business, insurance mediation activity or mortgage mediation activity and wishes to appoint, or has appointed, an appointed representative (SUP 12.1.1 R (1)). |
SUP 12 (Appointed representatives) As column (2). |
|
SUP 13 (Exercise of passport rights by UK firms) Does not apply. |
SUP 13 (Exercise of passport rights by UK firms) Does not apply. |
|
SUP 14 (Incoming EEA Firms: Changing detail and cancelling qualifications for authorisation) Applies. |
SUP 14 (Incoming EEA Firms: Changing detail and cancelling qualifications for authorisation) Applies |
|
SUP 15 (Notifications to the FSA) Applies in full if the firm has a top-up permission. Otherwise, the application is modified as set out in SUP 15 Annex 1. |
SUP 15 (Notifications to the FSA) Does not apply if the firm has permission only for cross-border services and does not carry on regulated activities in the United Kingdom (SUP 15 Annex 1).Otherwise, as column (2). |
|
SUP 16 (Reporting requirements) Parts of this chapter may apply if the firm has a top-up permission or if the firm is: (a) a bank; or (b) a depositary of an ICVC; or (c) an OPS firm; or (d) a trustee of an AUT; or (e) an insurer with permission to effect or carry out life policies; or (f) a firm with permission to establish, operate or wind up a stakeholder pension scheme; or (g) a firm with permission to advise on investments, arrange (bring about) deals in investments, make arrangements with a view to transactions in investments, or arrange safeguarding and administration of assets. (SUP 16.1.) |
SUP 16 (Reporting requirements) Parts of this chapter may apply if the firm has a top-up permission or if the firm is: (a) a depositary of an ICVC; or (b) an OPS firm; or (c) a trustee of an AUT; or (d) an insurer with permission to effect or carry out life policies; or (e) a firm with permission to establish, operate or wind up a stakeholder pension scheme; or (f) a firm with permission to advise on investments, arrange (bring about) deals in investments, make arrangements with a view to transactions in investments, or arrange safeguarding and administration of assets (SUP 16.1.) |
|
SUP 17 (Transaction reporting) Does not apply in relation to the firm's passported activities. Otherwise, this chapter applies only if the firm is a securities and futures firm, a personal investment firm or an ISD investment firm (SUP 17.1.1). |
SUP 17 (Transaction reporting) Does not apply (SUP 17.1.1 (2)(a)). |
|
SUP 18 (Transfers of business) SUP 18.4 Does not apply. SUP 18.1, SUP 18.2 and SUP 18.3 may be relevant if the firm proposes to transfer the whole or part of its business by an insurance business transfer scheme or to accept such a transfer or proposes to accept certain transfers of insurance business taking place outside the United Kingdom. |
SUP 18 (Transfers of business) As column (2). |
|
SUP 19 (Commodity Futures Trading Commission Part 30 Exemption) This chapter may be relevant if the firm intends to trade on behalf of US customers on non-US futures and options exchanges. |
SUP 19 (Commodity Futures Trading Commission Part 30 Exemption) Does not apply (SUP 19.1.1 G (2)). |
|
SUP 20 (Fees) Applies (SUP 20.1.1 R) but modified (SUP 20.4.7 G - SUP 20.4.10 R). |
SUP 20 (Fees) As column (2). |
|
SUP App 1 (Prudential categories) Applies and provides guidance on the prudential categories used in the Handbook. |
SUP App 1 (Prudential categories) As column (2). |
|
SUP App 2 (Insurers: Scheme of operations) Does not apply (SUP App 2.1.1 R). |
SUP App 2 (Insurers: Scheme of operations) Does not apply (SUP App 2.1.1 R). |
|
ENF | ENF applies and contains guidance on the use of the FSA's enforcement powers (ENF 1). | ENF applies and contains guidance on the use of the FSA's enforcement powers (ENF 1). |
DEC | DEC applies and contains guidance on the FSA's decision making procedures (DEC 1). | DEC applies and contains guidance on the FSA's decision making procedures (DEC 1). |
DISP | Applies (DISP 1.1.1 R). | Does not apply (DISP 1.1.1 R). |
COMP | Applies, except in relation to the passported activities of an ISD investment firm or a BCD credit institution (see the definition of "participant firm") other than an electronic money institution within the meaning of article 1(3)(a) of the E-Money Directive that has the right to benefit from the mutual recognition arrangements under the Banking Consolidation Directive. However, an ISD investment firm or BCD credit institution may be able to apply for top-up cover in relation to its passported activities (see COMP 14 (Participation by EEA Firms)). | Does not apply in relation to the passported activities of an ISD investment firm or a BCD credit institution (see the definition of "participant firm"). Otherwise, COMP may apply, but the coverage of the compensation scheme is limited for non-UK activities (see COMP 5). |
COAF | Applies if the firm wishes to bring a complaint under the complaints scheme, provided the complaint meets the requirements of the complaints scheme (COAF 1.2). | As column (2). |
COLL and CIS | COLL and CIS apply if the firm: (a) is the operator or depositary of an AUT or ICVC; or (b) wishes to apply for an authorisation order to establish an AUT or ICVC; or (c) is the operator of a recognised scheme; or (d) wishes to apply for recognition of a recognised scheme. |
As column (2). |
CRED | Does not apply. | Does not apply. |
ECO | ECO 2 applies if the firm is an outgoing ECA provider. ECO 3 applies if the firm is a domestic ECA provider. ECO 1 does not apply. | ECO 1 applies if the firm is an incoming ECA provider except for ECO 1.2.1 R which does not apply if:. (a) the electronic commerce activity is not insurance business which: (i) satisfies the conditions in ECO 1.2.3 R; and (ii) is carried on by an insurer; and (b) the EEA State from which the activity is provided has implemented the DMD with the result that the obligations provided for by the DMD are applied when the incoming ECA provider is carrying on the activity from an establishment in that State with a UK ECA recipient in the United Kingdom. ECO 2 and ECO 3 do not apply. |
ELM | Only ELM 6 and (in so far as it applies to the rules in ELM 6) ELM 5.6.1R apply. | Does not apply. |
LLD | Does not apply. | Does not apply. |
MCOB | Applies where the activity is carried on with or for a customer resident in the United Kingdom or another EEA State at the time that the activity is carried on, but see the territorial scope in MCOB 3.3 (Application: where?). | Applies where the activity is carried on with or for a customer resident in the United Kingdom at the time, that the activity is carried on but see MCOB 1.3.4 R (Distance contracts entered into from an establishment in another EEA State) and MCOB 3.3 (Application: where?). |
PROF | PROF applies only if the firm is an authorised professional firm. | As column (2). |
REC | Does not apply. | Does not apply. |
AUTH 6
Approved
persons
AUTH 6.1
Application and purpose
- 01/12/2004
Application
AUTH 6.1.1
See Notes
- 21/02/2002
AUTH 6.1.2
See Notes
- 03/09/2001
AUTH 6.1.3
See Notes
- 03/09/2001
Purpose
AUTH 6.1.4
See Notes
- 03/09/2001
AUTH 6.2
Introduction
- 01/12/2004
AUTH 6.2.1
See Notes
- 03/09/2001
AUTH 6.2.2
See Notes
- 03/09/2001
AUTH 6.2.3
See Notes
- 03/09/2001
AUTH 6.2.4
See Notes
- 03/09/2001
AUTH 6.2.5
See Notes
- 03/09/2001
AUTH 6.2.6
See Notes
- 03/09/2001
AUTH 6.2.7
See Notes
- 18/10/2001
AUTH 6.2.8
See Notes
- 21/02/2002
Controlled functions
AUTH 6.2.9
See Notes
- 18/10/2001
AUTH 6.3
Procedures relating to approved persons
- 01/12/2004
AUTH 6.3.1
See Notes
- 21/02/2002
AUTH 6.3.2
See Notes
- 03/09/2001
AUTH 6.3.3
See Notes
- 03/09/2001
AUTH 6.3.4
See Notes
- 03/09/2001
Outsourcing to another firm
AUTH 6.3.5
See Notes
- 03/09/2001
EEA firms and Treaty firms
AUTH 6.3.6
See Notes
- 03/09/2001
Processing an application
AUTH 6.3.7
See Notes
- 03/09/2001
AUTH 6.3.8
See Notes
- 03/09/2001
AUTH 6.3.9
See Notes
AUTH 6.3.10
See Notes
- 03/09/2001
AUTH 6.3.11
See Notes
- 21/02/2002
Decisions on applications
AUTH 6.3.12
See Notes
- 03/09/2001
AUTH 6.3.13
See Notes
- 03/09/2001
AUTH 6.4
Further questions
- 01/12/2004
AUTH 6.4.1
See Notes
- 03/09/2001
AUTH 6.4.2
See Notes
- 01/07/2003
AUTH 6.5
Notified persons
- 01/12/2004
AUTH 6.5.1
See Notes
- 18/10/2001
AUTH 6.5.2
See Notes
- 18/10/2001
AUTH 6 Annex 1
Approved Persons
- 01/12/2004
AUTH 6 Annex 1.1
See Notes
Question: | Answer: | |
Requirements of the regime | ||
1 | When is approval required? | The Act requires that approval be obtained before a person performs a controlled function. See section 59 of the Act (Approval for particular arrangements). |
2 | Can an individual be approved in advance of a firm becoming authorised? | No. The application will be coordinated to ensure that the approval of the individual coincides with the giving of permission to the firm. |
3 | Can a person be approved for more than one controlled function? | Yes. A firm will need to seek approval in respect of each controlled function a person is to perform. |
4 | Do the controlled functions apply to an incoming EEA firm that is providing cross border services into the United Kingdom? | No. The approved persons regime does not apply to cross border services. See SUP 10.1.6 R (Application). |
5 | May any activity be outsourced by a firm? | Yes. But if that activity constitutes a regulated activity the person to whom it is outsourced will itself need permission. |
6 | Can a significant influence function be outsourced? | It is a question of fact in each case who is performing a significant influence function. These functions are mostly described at a high level of responsibility, that is, for example, the director of a company or a partner of a partnership. The persons performing these functions cannot avoid their ultimate responsibility and therefore the need for approval approval. However, some of the significant influence functions may be performed by a person who is specifically brought in to do the job, for example the chief executive function (where it is to be performed by a body corporate) and the appointed actuary function actuarial and with-profits actuary functions. |
7 | Do Lloyd's underwriting agents still require registration with Lloyd's? | Yes. Approval for a controlled function is not sufficient. |
Submitting an application | ||
8 | Who applies for approval? | It is the firm which applies for approval. See section 60 of the Act (Applications for approval). |
9 | What is the role of the candidate in the application process? | Before the firm submits Form A it must verify the information contained in it. As part of this verification, the form provides for the candidate to confirm the accuracy of the information given by the firm so far as it relates to him. |
10 | What is the "fit and proper" test for approval? | Section 61(1) of the Act (Determination of applications) provides that the FSA may grant an application only if it is satisfied that the candidate is a fit and proper person to perform the relevant function. In determining this question, the Act sets out the matters to which the FSA may have regard (section 61(2) of the Act) and the FSA has given guidance on this in FIT. |
11 | If a firm is unsure whether or not something may have an impact on an individual's fitness and propriety, should it be disclosed? | Yes, always. The non-disclosure of material facts is taken very seriously by the FSA, as it is seen as evidence of current dishonesty. Therefore, if in doubt, disclose. |
12 | Must all gaps in previous employment be explained? | Yes. |
FSA procedures | ||
13 | Does the FSA verify the information provided to it? | Yes, as far as possible, information is verified. |
14 | Will the FSA handle information confidentially? | Yes. The FSA handles all information confidentially and is subject to the provisions of the Data Protection Act 1988. |
AUTH 6 Annex 2
Approved Persons
- 01/12/2004
AUTH 6 Annex 2.1
See Notes
AUTH 7
Periodical publications, news services and broadcasts: applications
for certification
AUTH 7.1
Application and purpose
- 01/12/2004
Application
AUTH 7.1.1
See Notes
- 15/11/2001
Purpose
AUTH 7.1.2
See Notes
- 15/11/2001
AUTH 7.1.3
See Notes
- 15/11/2001
AUTH 7.2
Introduction
- 01/12/2004
Exclusion for advice given in certain publications and services
AUTH 7.2.1
See Notes
- 15/11/2001
Certificate that the exclusion applies
AUTH 7.2.2
See Notes
- 15/11/2001
Certificates under the Financial Services Act 1986
AUTH 7.2.3
See Notes
- 15/11/2001
AUTH 7.3
Does the activity require authorisation?
- 01/12/2004
Advising on investments and advising on regulated mortgage contracts
AUTH 7.3.1
See Notes
- 15/11/2001
AUTH 7.3.1A
See Notes
- 14/01/2001
AUTH 7.3.2
See Notes
- 15/11/2001
Carrying on the regulated activity by way of business
AUTH 7.3.3
See Notes
- 15/11/2001
AUTH 7.3.3A
See Notes
- 14/01/2001
AUTH 7.3.4
See Notes
- 15/11/2001
Carrying on the regulated activity in the United Kingdom
AUTH 7.3.5
See Notes
- 15/11/2001
AUTH 7.3.6
See Notes
- 15/11/2001
AUTH 7.3.7
See Notes
- 15/11/2001
Exclusions and exempt persons
AUTH 7.3.8
See Notes
- 15/11/2001
Which person is required to be authorised?
AUTH 7.3.9
See Notes
- 15/11/2001
AUTH 7.3.10
See Notes
- 15/11/2001
AUTH 7.4
Does the article 54 exclusion apply?
- 01/12/2004
The formats
AUTH 7.4.1
See Notes
- 15/11/2001
AUTH 7.4.2
See Notes
- 15/11/2001
Formats in writing or other legible form
AUTH 7.4.3
See Notes
- 15/11/2001
Television and Radio
AUTH 7.4.4
See Notes
- 15/11/2001
The principal purpose test
AUTH 7.4.5
See Notes
- 15/11/2001
AUTH 7.4.6
See Notes
- 15/11/2001
AUTH 7.4.7
See Notes
- 15/11/2001
AUTH 7.4.8
See Notes
- 15/11/2001
AUTH 7.4.9
See Notes
In the FSA's view, material will not lead or enable a person to engage in a relevant transaction where the material is intended merely to raise people's awareness of matters relating to securities, relevant investments or regulated mortgage contracts.
- 15/11/2001
AUTH 7.4.10
See Notes
- 15/11/2001
AUTH 7.4.11
See Notes
- 15/11/2001
AUTH 7.4.12
See Notes
- 15/11/2001
Who can benefit from the exclusion?
AUTH 7.4.13
See Notes
- 15/11/2001
AUTH 7.5
When is it appropriate to apply for a certificate?
- 01/12/2004
AUTH 7.5.1
See Notes
- 15/11/2001
AUTH 7.5.2
See Notes
- 15/11/2001
AUTH 7.5.3
See Notes
- 15/11/2001
AUTH 7.5.4
See Notes
- 15/11/2001
AUTH 7.6
Applications for a certificate
- 01/12/2004
Pre-application contact
AUTH 7.6.1
See Notes
- 01/07/2003
Form of application
AUTH 7.6.2
See Notes
- 01/07/2003
Requests for further information
AUTH 7.6.3
See Notes
- 15/11/2001
Time for processing applications
AUTH 7.6.4
See Notes
- 15/11/2001
Application Fee
AUTH 7.6.5
See Notes
- 15/11/2001
The FSA's approach to considering applications
AUTH 7.6.6
See Notes
- 15/11/2001
AUTH 7.6.7
See Notes
- 15/11/2001
AUTH 7.6.8
See Notes
- 15/11/2001
AUTH 7.6.9
See Notes
- 15/11/2001
AUTH 7.6.10
See Notes
- 15/11/2001
Grant of application
AUTH 7.6.11
See Notes
- 15/11/2001
Refusal of application
AUTH 7.6.12
See Notes
- 15/11/2001
AUTH 7.7
Post certification issues
- 01/12/2004
Ongoing monitoring
AUTH 7.7.1
See Notes
- 15/11/2001
AUTH 7.7.2
See Notes
- 01/04/2004
Revocation of certificate
AUTH 7.7.3
See Notes
- 15/11/2001
Publication of details of certificate holders
AUTH 7.7.4
See Notes
- 15/11/2001
Further information
AUTH 7.7.5
See Notes
- 01/07/2003
AUTH 8
Determining applications
AUTH 8.1
Application and purpose
- 01/12/2004
Application
AUTH 8.1.1
See Notes
- 03/09/2001
Purpose
AUTH 8.1.2
See Notes
- 03/09/2001
AUTH 8.1.3
See Notes
- 03/09/2001
AUTH 8.1.4
See Notes
- 03/09/2001
AUTH 8.1.5
See Notes
- 03/09/2001
AUTH 8.2
Determination of an application
- 01/12/2004
Who makes the determination?
AUTH 8.2.1
See Notes
- 03/09/2001
AUTH 8.2.2
See Notes
- 03/09/2001
What are internal staff procedures?
AUTH 8.2.3
See Notes
- 03/09/2001
AUTH 8.2.4
See Notes
- 03/09/2001
An overview of internal staff procedures
AUTH 8.2.5
See Notes
- 03/09/2001
AUTH 8.2.6
See Notes
- 21/02/2002
AUTH 8.2.7
See Notes
- 03/09/2001
AUTH 8.2.8
See Notes
- 03/09/2001
The Regulatory Decisions Committee
AUTH 8.2.9
See Notes
- 03/09/2001
AUTH 8.2.10
See Notes
- 03/09/2001
AUTH 8.2.11
See Notes
- 03/09/2001
AUTH 8.2.12
See Notes
- 03/09/2001
AUTH 8.3
Statutory notices and other matters
- 01/12/2004
AUTH 8.3.1
See Notes
- 03/09/2001
Warning notices
AUTH 8.3.2
See Notes
- 03/09/2001
AUTH 8.3.3
See Notes
- 03/09/2001
AUTH 8.3.4
See Notes
- 03/09/2001
AUTH 8.3.5
See Notes
- 03/09/2001
Representations
AUTH 8.3.6
See Notes
- 03/09/2001
AUTH 8.3.7
See Notes
- 03/09/2001
Decision notices
AUTH 8.3.8
See Notes
- 03/09/2001
AUTH 8.3.9
See Notes
- 03/09/2001
AUTH 8.3.10
See Notes
- 03/09/2001
Reference to the Financial Services and Markets Tribunal
AUTH 8.3.11
See Notes
- 03/09/2001
AUTH 8.3.12
See Notes
- 03/09/2001
AUTH 8.3.13
See Notes
- 03/09/2001
Final notices
AUTH 8.3.14
See Notes
- 03/09/2001
AUTH 8.3.15
See Notes
- 03/09/2001
AUTH 8.3.16
See Notes
- 03/09/2001
Publication
AUTH 8.3.17
See Notes
- 03/09/2001
AUTH 8.3.18
See Notes
- 01/11/2004
AUTH 8 Annex 1
Determining applications
- 01/12/2004
AUTH 8 Annex 1
See Notes
- 03/09/2001
Export chapter as
AUTH App 1
Appendix 1. Financial promotion and related activities
AUTH App 1.1
Application and purpose
- 01/12/2004
Application
AUTH App 1.1.1
See Notes
- 01/06/2002
Purpose of guidance
AUTH App 1.1.2
See Notes
- 01/10/2002
AUTH App 1.1.3
See Notes
- 01/06/2002
AUTH App 1.1.4
See Notes
- 01/06/2002
AUTH App 1.2
Introduction
- 01/12/2004
AUTH App 1.2.1
See Notes
- 01/06/2002
AUTH App 1.2.2
See Notes
- 01/06/2002
AUTH App 1.2.3
See Notes
- 01/06/2002
AUTH App 1.2.4
See Notes
- 01/06/2002
AUTH App 1.2.5
See Notes
- 01/06/2002
AUTH App 1.2.6
See Notes
- 01/06/2002
AUTH App 1.2.7
See Notes
- 01/06/2002
AUTH App 1.2.8
See Notes
- 01/06/2002
AUTH App 1.3
Financial promotion
- 01/12/2004
AUTH App 1.3.1
See Notes
- 01/06/2002
AUTH App 1.3.2
See Notes
- 01/06/2002
AUTH App 1.3.3
See Notes
- 01/06/2002
AUTH App 1.3.4
See Notes
- 01/06/2002
AUTH App 1.3.5
See Notes
- 01/06/2002
AUTH App 1.3.6
See Notes
- 01/06/2002
AUTH App 1.4
Invitation or inducement
- 01/12/2004
Promotional element
AUTH App 1.4.1
See Notes
- 01/06/2002
AUTH App 1.4.2
See Notes
- 01/06/2002
AUTH App 1.4.3
See Notes
- 01/06/2002
AUTH App 1.4.4
See Notes
- 01/06/2002
Invitations
AUTH App 1.4.5
See Notes
- 01/06/2002
AUTH App 1.4.6
See Notes
- 01/06/2002
Inducements
AUTH App 1.4.7
See Notes
- 01/06/2002
AUTH App 1.4.8
See Notes
- 01/06/2002
Directory listings
AUTH App 1.4.9
See Notes
- 01/06/2002
Tombstone advertisements (announcements of a firm's past achievements)
AUTH App 1.4.10
See Notes
- 01/06/2002
Links to a website
AUTH App 1.4.11
See Notes
- 01/06/2002
Banner advertisements on a website
AUTH App 1.4.12
See Notes
- 01/06/2002
Publication or broadcast of prices of investments (historic or live)
AUTH App 1.4.13
See Notes
- 01/06/2002
Company statements and announcements and analyst briefings
AUTH App 1.4.14
See Notes
- 01/06/2002
Journalism
AUTH App 1.4.15
See Notes
- 01/06/2002
Performance tables
AUTH App 1.4.16
See Notes
- 01/06/2002
AUTH App 1.4.17
See Notes
- 01/06/2002
Decision Trees
AUTH App 1.4.18
See Notes
- 01/06/2002
Investment agreements, share purchase agreements and customer agreements
AUTH App 1.4.19
See Notes
- 01/06/2002
Image advertising
AUTH App 1.4.20
See Notes
- 01/06/2002
Advertisements which invite contact with the advertiser
AUTH App 1.4.21
See Notes
- 01/06/2002
Introductions
AUTH App 1.4.22
See Notes
- 01/06/2002
Distributors
AUTH App 1.4.23
See Notes
- 01/06/2002
Investment trading methods and training courses
AUTH App 1.4.24
See Notes
- 01/06/2002
Invitations to attend meetings or to receive telephone calls or visits
AUTH App 1.4.25
See Notes
- 01/06/2002
Explanation of terms
AUTH App 1.4.26
See Notes
- 01/06/2002
Enquiries about a person's status or intentions
AUTH App 1.4.27
See Notes
- 01/06/2002
Solicited and accompanying material
AUTH App 1.4.28
See Notes
- 01/06/2002
AUTH App 1.4.29
See Notes
- 01/06/2002
AUTH App 1.4.30
See Notes
- 01/06/2002
Telephone services
AUTH App 1.4.31
See Notes
- 01/06/2002
Personal illustrations
AUTH App 1.4.32
See Notes
- 01/06/2002
Instructions or guidance on how to invest
AUTH App 1.4.33
See Notes
- 01/06/2002
Communications by employers to their employees
AUTH App 1.4.34
See Notes
- 01/06/2002
AUTH App 1.5
In the course of business
- 01/12/2004
AUTH App 1.5.1
See Notes
- 01/06/2002
AUTH App 1.5.2
See Notes
- 01/06/2002
AUTH App 1.5.3
See Notes
- 01/06/2002
AUTH App 1.5.4
See Notes
- 01/06/2002
AUTH App 1.5.5
See Notes
- 01/06/2002
AUTH App 1.6
Communicate
- 01/12/2004
AUTH App 1.6.1
See Notes
- 01/06/2002
Persons who communicate or cause a communication
AUTH App 1.6.2
See Notes
- 01/06/2002
Persons who do not communicate or cause a communication
AUTH App 1.6.3
See Notes
- 01/06/2002
Need for an active step to communicate or cause a communication
AUTH App 1.6.4
See Notes
- 01/06/2002
AUTH App 1.6.5
See Notes
- 01/06/2002
Website operators
AUTH App 1.6.6
See Notes
- 01/06/2002
Application of exemptions to persons causing a communication
AUTH App 1.6.7
See Notes
- 01/06/2002
Application of exemptions to persons who communicate on behalf of others
AUTH App 1.6.8
See Notes
- 01/06/2002
Meaning of 'made to', 'directed at' and 'recipient'
AUTH App 1.6.9
See Notes
- 01/06/2002
AUTH App 1.6.10
See Notes
- 01/06/2002
AUTH App 1.7
Engage in investment activity
- 01/12/2004
AUTH App 1.7.1
See Notes
- 01/06/2002
AUTH App 1.7.2
See Notes
So, it is quite possible for a person to be carrying on a business in the United Kingdom for which he does not require authorisation because the business activity either is not connected with financial services or falls within one of the exclusions in the Regulated Activities Order but find that the restriction in section 21 applies to his communications. It should also be noted that e-money is not a controlled investment. This means that the restriction in section 21 does not apply to the communication of an invitation or inducement that concerns e-money. This is unless the communication is a financial promotion for some other reason.
- 01/10/2002
AUTH App 1.7.3
See Notes
- 01/06/2002
AUTH App 1.7.4
See Notes
- 01/06/2002
AUTH App 1.7.5
See Notes
- 01/06/2002
AUTH App 1.8
Having an effect in the United Kingdom
- 01/12/2004
AUTH App 1.8.1
See Notes
- 01/06/2002
AUTH App 1.8.2
See Notes
- 01/06/2002
AUTH App 1.8.3
See Notes
- 01/10/2002
AUTH App 1.9
Circumstances where the restriction in section 21 does not apply
- 01/12/2004
AUTH App 1.9.1
See Notes
- 01/06/2002
AUTH App 1.9.2
See Notes
- 01/06/2002
AUTH App 1.9.3
See Notes
- 01/06/2002
AUTH App 1.9.4
See Notes
- 01/06/2002
AUTH App 1.9.5
See Notes
The Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) (Electronic Commerce Directive) Order 2002 (SI 2002/2157); and
- 01/10/2002
AUTH App 1.10
Types of financial promotion
- 01/12/2004
AUTH App 1.10.1
See Notes
- 01/06/2002
Real time v non-real time financial promotions
AUTH App 1.10.2
See Notes
- 01/06/2002
AUTH App 1.10.3
See Notes
- 01/10/2002
AUTH App 1.10.4
See Notes
- 01/06/2002
AUTH App 1.10.5
See Notes
- 01/06/2002
AUTH App 1.10.6
See Notes
- 01/06/2002
AUTH App 1.10.7
See Notes
- 01/06/2002
Solicited v unsolicited real time financial promotions
AUTH App 1.10.8
See Notes
- 01/06/2002
AUTH App 1.10.9
See Notes
- 01/06/2002
AUTH App 1.10.10
See Notes
AUTH App 1.10.11
See Notes
- 01/06/2002
AUTH App 1.10.12
See Notes
- 01/06/2002
AUTH App 1.10.13
See Notes
- 01/06/2002
AUTH App 1.10.14
See Notes
- 01/06/2002
AUTH App 1.11
Types of exemption under the Financial Promotion Order
- 01/12/2004
AUTH App 1.11.1
See Notes
- 01/06/2002
AUTH App 1.11.2
See Notes
- 01/06/2002
AUTH App 1.11.3
See Notes
- 01/06/2002
AUTH App 1.11.4
See Notes
- 01/06/2002
AUTH App 1.11.5
See Notes
- 01/06/2002
AUTH App 1.11.6
See Notes
- 01/06/2002
AUTH App 1.12
Exemptions applying to all controlled activities
- 01/12/2004
AUTH App 1.12.1
See Notes
- 01/10/2002
Financial promotions to overseas recipients (article 12)
AUTH App 1.12.2
See Notes
- 01/06/2002
AUTH App 1.12.3
See Notes
- 01/06/2002
AUTH App 1.12.4
See Notes
- 01/10/2002
AUTH App 1.12.5
See Notes
- 01/06/2002
AUTH App 1.12.6
See Notes
- 01/06/2002
AUTH App 1.12.7
See Notes
- 01/06/2002
AUTH App 1.12.8
See Notes
- 01/06/2002
Financial promotions from customers and potential customers (article 13)
AUTH App 1.12.9
See Notes
- 01/06/2002
Follow up financial promotions (article 14)
AUTH App 1.12.10
See Notes
- 01/06/2002
Introductions (article 15)
AUTH App 1.12.11
See Notes
- 01/10/2002
Exempt persons (article 16)
AUTH App 1.12.12
See Notes
- 01/06/2002
AUTH App 1.12.13
See Notes
- 01/06/2002
Generic promotions (article 17)
AUTH App 1.12.14
See Notes
- 01/06/2002
AUTH App 1.12.15
See Notes
- 01/06/2002
AUTH App 1.12.16
See Notes
- 01/06/2002
AUTH App 1.12.17
See Notes
- 01/06/2002
Mere conduits (article 18 and 18A)
AUTH App 1.12.18
See Notes
- 01/10/2002
AUTH App 1.12.19
See Notes
- 01/06/2002
AUTH App 1.12.20
See Notes
- 01/06/2002
Investment professionals (article 19)
AUTH App 1.12.21
See Notes
- 01/06/2002
AUTH App 1.12.22
See Notes
- 01/06/2002
Journalists (article 20)
AUTH App 1.12.23
See Notes
- 01/06/2002
AUTH App 1.12.24
See Notes
- 01/06/2002
AUTH App 1.12.25
See Notes
In addition, the publication, service or broadcast must be one which satisfies the principal purpose test set out in article 54 of the Regulated Activities Order. This means that the principal purpose must not be to advise on or lead or enable persons to buy or sell securities or relevant investments. See AUTH 7 for further guidance on this. Article 20 does not define what is meant by a person 'acting in the capacity of a journalist'. In the FSA's opinion, this expression has a potentially wide meaning. It will apply to anyone who writes for or contributes to a publication, service or broadcast. This includes experts or analysts who may be asked to contribute articles for a publication or website service or to offer their opinion in a broadcast.
- 01/06/2002
AUTH App 1.12.26
See Notes
- 01/06/2002
AUTH App 1.12.27
See Notes
- 01/10/2002
AUTH App 1.12.28
See Notes
- 01/06/2002
AUTH App 1.12.29
See Notes
- 01/06/2002
AUTH App 1.12.30
See Notes
- 01/06/2002
AUTH App 1.12.31
See Notes
- 01/06/2002
Promotion broadcast by company director etc (article 20A)
AUTH App 1.12.32
See Notes
- 01/10/2002
AUTH App 1.12.33
See Notes
- 01/06/2002
AUTH App 1.12.34
See Notes
- 01/06/2002
AUTH App 1.12.35
See Notes
- 01/06/2002
AUTH App 1.12.36
See Notes
- 01/06/2002
AUTH App 1.12.37
See Notes
- 01/06/2002
Incoming electronic commerce communications (article 20B)
AUTH App 1.12.38
See Notes
- 01/10/2002
AUTH App 1.13
Exemptions applying to financial promotions concerning deposits and certain contracts of insurance
- 01/12/2004
AUTH App 1.13.1
See Notes
- 01/06/2002
AUTH App 1.13.2
See Notes
- 01/06/2002
AUTH App 1.13.3
See Notes
- 01/06/2002
AUTH App 1.13.4
See Notes
- 01/06/2002
AUTH App 1.14
Other financial promotions
- 01/12/2004
AUTH App 1.14.1
See Notes
- 01/06/2002
AUTH App 1.14.2
See Notes
- 01/06/2002
One-off financial promotions (articles 28 and 28A)
AUTH App 1.14.3
See Notes
- 01/06/2002
AUTH App 1.14.4
See Notes
- 01/06/2002
AUTH App 1.14.5
See Notes
- 01/06/2002
AUTH App 1.14.6
See Notes
- 01/06/2002
AUTH App 1.14.7
See Notes
- 01/06/2002
AUTH App 1.14.8
See Notes
- 01/06/2002
AUTH App 1.14.9
See Notes
- 01/06/2002
AUTH App 1.14.10
See Notes
- 01/06/2002
AUTH App 1.14.11
See Notes
- 01/06/2002
AUTH App 1.14.12
See Notes
- 01/06/2002
AUTH App 1.14.13
See Notes
- 01/06/2002
Overseas communicators (articles 30-33)
AUTH App 1.14.14
See Notes
- 01/06/2002
AUTH App 1.14.15
See Notes
- 01/06/2002
AUTH App 1.14.16
See Notes
- 01/06/2002
AUTH App 1.14.17
See Notes
- 01/06/2002
Nationals of EEA States other than the United Kingdom (article 36)
AUTH App 1.14.18
See Notes
- 01/06/2002
Joint enterprises (article 39)
AUTH App 1.14.19
See Notes
- 01/06/2002
AUTH App 1.14.20
See Notes
- 01/06/2002
Certified high net worth individuals (article 48)
AUTH App 1.14.21
See Notes
- 01/06/2002
AUTH App 1.14.22
See Notes
- 01/10/2002
AUTH App 1.14.23
See Notes
- 01/06/2002
AUTH App 1.14.24
See Notes
- 01/06/2002
High net worth companies, unincorporated associations and trusts (article 49)
AUTH App 1.14.25
See Notes
- 01/06/2002
AUTH App 1.14.26
See Notes
- 01/06/2002
Sophisticated investors (article 50)
AUTH App 1.14.27
See Notes
- 01/10/2002
AUTH App 1.14.28
See Notes
- 01/06/2002
Associations of high net worth or sophisticated investors (article 51)
AUTH App 1.14.29
See Notes
- 01/06/2002
Common interest group of a company (article 52)
AUTH App 1.14.30
See Notes
- 01/06/2002
AUTH App 1.14.31
See Notes
- 01/10/2002
AUTH App 1.14.32
See Notes
- 01/06/2002
AUTH App 1.14.33
See Notes
- 01/06/2002
AUTH App 1.14.34
See Notes
- 01/06/2002
Sale of body corporate (article 62)
AUTH App 1.14.35
See Notes
- 01/06/2002
AUTH App 1.14.36
See Notes
- 01/06/2002
AUTH App 1.14.37
See Notes
- 01/06/2002
AUTH App 1.14.38
See Notes
- 01/06/2002
AUTH App 1.14.39
See Notes
- 01/06/2002
AUTH App 1.14.40
See Notes
- 01/06/2002
Other issues
AUTH App 1.14.41
See Notes
- 01/06/2002
AUTH App 1.14.42
See Notes
- 01/06/2002
AUTH App 1.15
Financial promotions by members of the professions (articles 55 and 55A)
- 01/12/2004
Real time financial promotions by professional firms
AUTH App 1.15.1
See Notes
- 01/06/2002
AUTH App 1.15.2
See Notes
- 01/06/2002
AUTH App 1.15.3
See Notes
- 01/06/2002
AUTH App 1.15.4
See Notes
- 01/06/2002
Non-real time financial promotions by professional firms
AUTH App 1.15.5
See Notes
- 01/06/2002
AUTH App 1.15.6
See Notes
- 01/06/2002
AUTH App 1.15.7
See Notes
- 01/06/2002
AUTH App 1.16
Financial promotions concerning funeral plans
- 01/12/2004
AUTH App 1.16.1
See Notes
- 01/06/2002
AUTH App 1.17
Introduction
- 01/12/2004
AUTH App 1.18
Financial promotions concerning the Lloyd's market
- 01/12/2004
AUTH App 1.18.1
See Notes
- 01/06/2002
AUTH App 1.18.2
See Notes
- 01/06/2002
AUTH App 1.19
Additional restriction on the promotion of life policies
- 01/12/2004
AUTH App 1.19.1
See Notes
- 01/06/2002
AUTH App 1.20
Additional restriction on the promotion of collective investment schemes
- 01/12/2004
AUTH App 1.20.1
See Notes
- 01/06/2002
AUTH App 1.20.2
See Notes
- 01/06/2002
AUTH App 1.20.3
See Notes
- 01/10/2002
AUTH App 1.20.4
See Notes
- 01/06/2002
AUTH App 1.21
Company statements, announcements and briefings
- 01/12/2004
AUTH App 1.21.1
See Notes
- 01/06/2002
AUTH App 1.21.2
See Notes
- 01/06/2002
AUTH App 1.21.3
See Notes
- 01/06/2002
Article 17: Generic promotions
AUTH App 1.21.4
See Notes
- 01/06/2002
Article 19: Investment professionals
AUTH App 1.21.5
See Notes
- 01/06/2002
Article 20A: Promotion broadcast by company director etc
AUTH App 1.21.6
See Notes
- 01/06/2002
Article 28 and 28A: One off promotions
AUTH App 1.21.7
See Notes
- 01/06/2002
Article 43: Members and creditors of certain bodies corporate
AUTH App 1.21.8
See Notes
- 01/06/2002
AUTH App 1.21.9
See Notes
- 01/06/2002
Article 47: Persons in the business of disseminating information
AUTH App 1.21.10
See Notes
- 01/06/2002
Article 59: Annual accounts and directors' report
AUTH App 1.21.11
See Notes
- 01/06/2002
AUTH App 1.21.12
See Notes
- 01/06/2002
Article 67: Promotions required or permitted by market rules
AUTH App 1.21.13
See Notes
- 01/10/2002
AUTH App 1.21.14
See Notes
- 01/06/2002
AUTH App 1.21.15
See Notes
- 01/06/2002
Article 68: Promotions in connection with admission to certain EEA markets
AUTH App 1.21.16
See Notes
- 01/10/2002
Article 69: Promotion of securities already admitted in certain markets
AUTH App 1.21.17
See Notes
- 01/06/2002
AUTH App 1.21.18
See Notes
- 01/06/2002
AUTH App 1.21.19
See Notes
- 01/06/2002
Article 71: Promotions included in listing particulars, etc
AUTH App 1.21.20
See Notes
- 01/06/2002
General issues
AUTH App1.21.21
See Notes
- 01/06/2002
AUTH App 1.22
The internet
- 01/12/2004
AUTH App 1.22.1
See Notes
- 01/06/2002
AUTH App 1.22.2
See Notes
- 01/06/2002
AUTH App 1.22.3
See Notes
- 01/06/2002
AUTH App 1.23
Regulated activities
- 01/12/2004
AUTH App 1.23.1
See Notes
- 01/06/2002
AUTH App 1.23.2
See Notes
- 01/06/2002
AUTH App 1.23.3
See Notes
- 01/06/2002
AUTH App 1.24
Advising on investments
- 01/12/2004
AUTH App 1.24.1
See Notes
- 01/06/2002
AUTH App 1.24.2
See Notes
- 01/06/2002
AUTH App 1.24.3
See Notes
AUTH App 1.25
Advice must relate to an investment which is a security or contractually based investment
- 01/12/2004
AUTH App 1.25.1
See Notes
- 01/06/2002
AUTH App 1.25.2
See Notes
- 01/06/2002
AUTH App 1.26
The investment must be a particular investment
- 01/12/2004
AUTH App 1.26.1
See Notes
- 01/06/2002
AUTH App 1.26.2
See Notes
- 01/06/2002
AUTH App 1.26.3
See Notes
- 01/06/2002
AUTH App 1.26.4
See Notes
- 01/06/2002
AUTH App 1.27
Advice to be given to persons in their capacity as investors (on the merits of their investing as principal or agent)
- 01/12/2004
AUTH App 1.27.1
See Notes
- 01/06/2002
AUTH App 1.27.2
See Notes
- 01/06/2002
AUTH App 1.27.3
See Notes
- 01/06/2002
AUTH App 1.27.4
See Notes
- 01/06/2002
AUTH App 1.27.5
See Notes
- 01/06/2002
AUTH App 1.28
Advice or information
- 01/12/2004
AUTH App 1.28.1
See Notes
- 01/06/2002
AUTH App 1.28.2
See Notes
- 01/06/2002
AUTH App 1.28.3
See Notes
- 01/06/2002
AUTH App 1.28.4
See Notes
- 01/06/2002
AUTH App 1.29
Advice must relate to the merits (of buying or selling a particular investment)
- 01/12/2004
AUTH App 1.29.1
See Notes
- 01/06/2002
AUTH App 1.29.2
See Notes
- 01/06/2002
AUTH App 1.29.3
See Notes
- 01/10/2002
AUTH App 1.29.4
See Notes
- 01/06/2002
AUTH App 1.29.5
See Notes
- 01/06/2002
AUTH App 1.29.6
See Notes
- 01/06/2002
AUTH App 1.30
Medium used to give advice or information
- 01/12/2004
AUTH App 1.30.1
See Notes
- 01/06/2002
AUTH App 1.30.2
See Notes
- 01/06/2002
AUTH App 1.30.3
See Notes
- 01/06/2002
AUTH App 1.30.4
See Notes
- 01/06/2002
AUTH App 1.30.5
See Notes
- 01/06/2002
AUTH App 1.31
Exclusions for advising on investments
- 01/12/2004
AUTH App 1.31.1
See Notes
- 01/06/2002
AUTH App 1.31.2
See Notes
- 01/06/2002
AUTH App 1.31.3
See Notes
- 01/06/2002
AUTH App 1.31.4
See Notes
- 01/06/2002
AUTH App 1.32
Arranging deals in investments
- 01/12/2004
AUTH App 1.32.1
See Notes
- 01/06/2002
AUTH App 1.32.2
See Notes
- 01/06/2002
AUTH App 1.32.3
See Notes
- 01/06/2002
AUTH App 1.32.4
See Notes
- 01/06/2002
AUTH App 1.32.5
See Notes
- 01/06/2002
AUTH App 1.32.6
See Notes
- 01/06/2002
AUTH App 1.32.7
See Notes
- 01/06/2002
AUTH App 1.32.8
See Notes
- 01/06/2002
AUTH App 1.32.9
See Notes
- 01/06/2002
AUTH App 1.32.10
See Notes
- 01/06/2002
AUTH App 1.32.11
See Notes
- 01/06/2002
AUTH App 1.33
Introducing
- 01/12/2004
AUTH App 1.33.1
See Notes
- 01/06/2002
AUTH App 1.33.2
See Notes
- 01/06/2002
AUTH App 1.33.3
See Notes
- 01/06/2002
AUTH App 1.33.4
See Notes
- 01/06/2002
AUTH App 1.33.5
See Notes
- 01/06/2002
AUTH App 1.34
The business test
- 01/12/2004
AUTH App 1.34.1
See Notes
- 01/06/2002
AUTH App 1.34.2
See Notes
- 01/06/2002
AUTH App 1.35
Authorisation and exemption
- 01/12/2004
AUTH App 1.35.1
See Notes
- 01/06/2002
AUTH App 1.36
Illustrative tables
- 01/12/2004
Financial Promotions: flowchart
AUTH App 1.36.1
See Notes
- 01/06/2002
Controlled activities and controlled investments
AUTH App 1.36.2
See Notes
- 01/06/2002
AUTH App 1.36.3
See Notes
Controlled activities
1. | Accepting deposits. |
2. | Effecting and carrying out contracts of insurance. |
3. | Dealing in securities and contractually based investments. |
4. | Arranging deals in investments. |
5. | Managing investments. |
6. | Safeguarding and administering investments. |
7. | Advising on investments. |
8. | Advising on syndicate participation at Lloyd's. |
9. | Providing funeral plan contracts. |
10. | Providing qualifying credit. |
10A. | Arranging qualifying credit etc. |
10B. | Advising on qualifying credit etc. |
11. | Agreeing to do anything in 3 to 10B above. |
- 01/10/2002
AUTH App 1.36.4
See Notes
Controlled investments
12. | A deposit. |
13. | Rights under a contract of insurance. |
14. | Shares etc. |
15. | Instruments creating or acknowledging indebtedness (referred to in the Glossary as debentures). |
16. | Government and public securities. |
17. | Instruments giving entitlement to investments (referred to in the Glossary as warrants). |
18. | Certificates representing certain securities. |
19. | Units in a collective investment scheme. |
20. | Rights under a stakeholder pension scheme. |
21. | Options. |
22. | Futures. |
23. | Contracts for differences etc. |
24. | Lloyd's syndicate capacity and syndicate membership. |
25. | Funeral plan contracts (with effect from a date to be announced). |
26. | Agreements for qualifying credit (with effect from a date to be announced). |
27. | Rights to or interests in anything falling under 12 to 25 above. |
- 01/06/2002
Application of exemptions to forms of financial promotion
AUTH App 1.36.5
See Notes
- 01/06/2002
AUTH App 1.36.6
See Notes
Application of Exemptions to Forms of Promotions
Financial Promotion Order | Applies to | |||
Article No. | Title and AUTH App 1 reference (where applicable) | Unsolicited real time | Solicited real time | Non-real time (solicited or unsolicited) |
12 | Communications to overseas recipients (1.12.2G) | *1 | * | * |
13 | Communications from customers and potential customers (1.12.9G) | * | * | * |
14 | Follow up non-real time communications and solicited real time communications (1.12.10G) | * | * | |
15 | Introductions (1.12.11G) | * | * | |
16 | Exempt persons (1.12.12G) | *2 | *3 | *3 |
17 | Generic promotions (1.12.14G and 1.21.4G) | * | * | * |
18 | Mere conduits (1.12.18G) | * | * | * |
18A | Outgoing electronic commerce communications: mere conduits, caching and hosting | * | * | * |
19 | Investment professionals (1.12.21G and 1.21.5G) | * | * | * |
20 | Communications by journalists (1.12.23G) | * | ||
20A | Promotion broadcast by company director etc (1.12.23G and 1.21.6G) | * | * | * |
20B | Incoming electronic commerce communications (1.12.38G) | * | * | * |
22 | Deposits : non-real time communications (1.13) | * | ||
23 | Deposits : real time communications (1.13) | * | * | |
24 | Relevant insurance activity : non-real time communications (1.13) | * | ||
25 | Relevant insurance activity : non-real time communications : reinsurance and large risks (1.13) | * | ||
26 | Relevant insurance activity : real time communications (1.13) | * | * | |
28 | One-off non-real time communications and solicited real time communications (1.14.3G) | * | * | |
28A | One-off unsolicited real time communications (1.14.11G) | * | ||
29 | Communications required or authorised by enactments | * | * | * |
30 | Overseas communicators: solicited real time communications (1.14.15G) | * | ||
31 | Overseas communicators: non-real time communications to previously overseas customers (1.14.17G) | * | ||
32 | Overseas communicators: unsolicited real time communications to previously overseas customers (1.14.16G) | * | ||
33 | Overseas communicators: unsolicited real time communications to knowledgeable customers (1.14.16G) | * | ||
34 | Governments, central banks etc | * | * | |
35 | Industrial and provident societies | * | * | |
36 | Nationals of the EEA States other than United Kingdom (1.14.18G) | * | * | |
37 | Financial markets | * | * | |
38 | Persons in the business of placing promotional material | * | * | * |
39 | Joint enterprises (1.14.19G) | * | * | * |
40 | Participants in certain recognised collective investment schemes | * | * | |
41 | Bearer instruments: promotions required or permitted by market rules (1.14.42G) | * | * | |
42 | Bearer instruments: promotions to existing holders (1.14.42G) | * | * | |
43 | Members and creditors of certain bodies corporate (1.14.41G and 1.21.8G) | * | * | |
44 | Members and creditors of open-ended investment companies | * | * | |
45 | Group companies | * | * | * |
46 | Qualifying credit to bodies corporate | * | * | * |
47 | Persons in the business of disseminating information (1.21.10G) | * | * | * |
48 | Certified high net worth individuals (1.14.21G) | * | * | |
49 | High net worth companies, unincorporated associations etc (1.14.25G) | * | * | * |
50 | Sophisticated investors (1.14.27G) | * | * | * |
51 | Associations of high net worth or sophisticated investors (1.14.29G) | * | * | |
52 | Common interest group of a company (1.14.30G) | * | * | |
53 | Settlors, trustees and personal representatives | * | * | * |
54 | Beneficiaries of trust, will or intestacy | * | * | * |
55 | Communications by members of professions (1.15.1G) | * | * | |
55A | Non-real time communication by members of the professions. (1.15.5G) | * | ||
56 | Remedy following report by Parliamentary Commissioner for Administration | * | * | * |
57 | Persons placing promotional material in particular publications | * | * | * |
58 | Acquisition of interest in premises run by management companies | * | * | |
59 | Annual accounts and directors' report (1.21.11G) | * | * | * |
60 | Participation in employee shares schemes | * | * | * |
61 | Sale of goods and supply of services | * | * | |
62 | Sale of body corporate (1.14.35G) | * | * | * |
64 | Takeovers of relevant unlisted companies | * | * | * |
65 | Takeovers of relevant unlisted companies: warrants etc | * | * | * |
66 | Takeovers of relevant unlisted companies: application forms | * | * | * |
67 | Promotions required or permitted by market rules (1.21.13G) | * | * | |
68 | Promotions in connection with admission to certain EEA markets (1.21.16G) | * | * | |
69 | Promotions of securities already admitted to certain markets (1.21.17G) | * | * | |
70 | Promotions in connection with listing applications | * | * | |
71 | Promotions included in listing particulars etc | * | ||
72 | Promotions included in prospectus for public offer of unlisted securities (1.21.20G) | * | ||
73 | Material relating to prospectus for public offer of unlisted securities | * | ||
74 | Approval of communication prior to Order coming into force | *4 | *4 | * |
in limited circumstances only - see article 12(2) of the Financial Promotion Order | ||||
1 for the purpose of article 16 (2) only | ||||
2 for the purpose of article 16 (1) only | ||||
3 for the purpose of article 16 (1) only | ||||
4 although article 74 applies to real time communications it may be unlikely to do so in practice. This is because it relates to advertisements which are approved under section 57 of the Financial Services Act 1986 or communications approved in accordance with COB 3. Such advertisements and communications are likely to be non-real time communications. |
- 01/06/2002
AUTH App 2
Meaning of open-ended investment company
AUTH App 2.1
Application and Purpose
- 01/12/2004
Application
AUTH App 2.1.1
See Notes
- 01/10/2002
Purpose
AUTH App 2.1.2
See Notes
- 01/10/2002
Effect of guidance
AUTH App 2.1.3
See Notes
- 01/10/2002
Other guidance that may be relevant
AUTH App 2.1.4
See Notes
- 01/04/2004
AUTH App 2.1.5
See Notes
- 01/04/2004
AUTH App 2.1.6
See Notes
- 01/10/2002
AUTH App 2.2
Introduction
- 01/12/2004
AUTH App 2.2.1
See Notes
- 01/10/2002
AUTH App 2.2.2
See Notes
- 01/10/2002
AUTH App 2.2.3
See Notes
- 01/10/2002
AUTH App 2.2.4
See Notes
- 01/10/2002
AUTH App 2.3
The definition
- 01/12/2004
AUTH App 2.3.1
See Notes
- 01/10/2002
AUTH App 2.3.2
See Notes
- 01/10/2002
AUTH App 2.3.3
See Notes
- 01/10/2002
AUTH App 2.3.4
See Notes
- 01/10/2002
AUTH App 2.3.5
See Notes
- 01/10/2002
AUTH App 2.3.6
See Notes
- 01/10/2002
AUTH App 2.4
Collective investment scheme (section 235 of the Act)
- 01/12/2004
AUTH App 2.4.1
See Notes
- 01/10/2002
AUTH App 2.4.2
See Notes
- 01/10/2002
AUTH App 2.4.3
See Notes
- 01/10/2002
AUTH App 2.4.4
See Notes
- 01/10/2002
AUTH App 2.4.5
See Notes
- 01/10/2002
AUTH App 2.4.6
See Notes
- 01/10/2002
AUTH App 2.5
The property condition (section 236(2) of the Act)
- 01/12/2004
AUTH App 2.5.1
See Notes
- 01/10/2002
AUTH App 2.5.2
See Notes
- 01/10/2002
AUTH App 2.5.3
See Notes
- 01/10/2002
AUTH App 2.5.4
See Notes
- 01/10/2002
AUTH App 2.5.5
See Notes
- 01/10/2002
AUTH App 2.6
The investment condition (section 236(3) of the Act): general
- 01/12/2004
AUTH App 2.6.1
See Notes
- 01/10/2002
AUTH App 2.6.2
See Notes
- 01/10/2002
AUTH App 2.6.3
See Notes
- 01/10/2002
AUTH App 2.6.4
See Notes
- 01/10/2002
AUTH App 2.6.5
See Notes
- 01/10/2002
AUTH App 2.6.6
See Notes
- 01/10/2002
AUTH App 2.6.7
See Notes
- 01/10/2002
AUTH App 2.7
The investment condition: the 'reasonable investor'
- 01/12/2004
AUTH App 2.7.1
See Notes
- 01/10/2002
AUTH App 2.7.2
See Notes
- 01/10/2002
AUTH App 2.7.3
See Notes
- 01/10/2002
AUTH App 2.7.4
See Notes
- 01/10/2002
AUTH App 2.7.5
See Notes
- 01/10/2002
AUTH App 2.7.6
See Notes
- 01/10/2002
AUTH App 2.8
The investment condition : the 'expectation test' (section 236(3)(a) of the Act)
- 01/12/2004
AUTH App 2.8.1
See Notes
- 01/10/2002
'Realisation' of investment
AUTH App 2.8.2
See Notes
- 01/10/2002
AUTH App 2.8.3
See Notes
- 01/10/2002
AUTH App 2.8.4
See Notes
- 01/10/2002
Illustrations of 'expectation'
AUTH App 2.8.5
See Notes
- 01/10/2002
AUTH App 2.8.6
See Notes
- 01/10/2002
Some relevant factors in applying the 'expectation test'
AUTH App 2.8.7
See Notes
- 01/10/2002
AUTH App 2.8.8
See Notes
- 01/10/2002
AUTH App 2.8.9
See Notes
- 01/10/2002
AUTH App 2.9
The investment condition : the 'satisfaction test' (section 236(3)(b) of the Act)
- 01/12/2004
AUTH App 2.9.1
See Notes
- 01/10/2002
AUTH App 2.9.2
See Notes
- 01/10/2002
AUTH App 2.9.3
See Notes
- 01/10/2002
Effect of realisation on a market
AUTH App 2.9.4
See Notes
- 01/10/2002
AUTH App 2.9.5
See Notes
- 01/10/2002
AUTH App 2.9.6
See Notes
- 01/10/2002
'Wholly or mainly'
AUTH App 2.9.7
See Notes
- 01/10/2002
AUTH App 2.10
Significance of being an open-ended investment company
- 01/12/2004
Marketing of shares or securities issued by body corporate
AUTH App 2.10.1
See Notes
- 01/10/2002
AUTH App 2.10.2
See Notes
- 01/10/2002
AUTH App 2.10.3
See Notes
- 01/10/2002
AUTH App 2.10.4
See Notes
- 01/04/2004
AUTH App 2.10.5
See Notes
- 01/10/2002
AUTH App 2.10.6
See Notes
- 01/10/2002
Implications for regulated activities
AUTH App 2.10.7
See Notes
- 01/10/2002
AUTH App 2.10.8
See Notes
- 01/10/2002
AUTH App 2.10.9
See Notes
- 01/10/2002
AUTH App 2.10.10
See Notes
- 01/10/2002
AUTH App 2.11
Frequently Asked Questions
- 01/12/2004
AUTH App 2.11.1
See Notes
There are some frequently asked questions about the application of the definition of an open-ended investment company in the following table. This table belongs to AUTH App 2.2.4 G (Introduction). | ||
Question | Answer | |
1 | Can a body corporate be both open-ended and closed-ended at the same time? | In the FSA's view, the answer to this question is 'no'. The fact that the investment condition is applied to BC (rather than to particular shares in, or securities of, BC) means that a body corporate is either an open-ended investment company as defined in section 236 of the Act or it is not. Where BC is an open-ended investment company, all of its securities would be treated as units of a collective investment scheme for the purpose of the Act. A body corporate formed in another jurisdiction may, however, be regarded as open-ended under the laws of that jurisdiction but not come within the definition of an open-ended investment company in section 236 (and vice versa). |
2 | Can an open-ended investment company become closed-ended (or a closed-ended body become open-ended)? | In the FSA's view, the answer to this question is 'yes'. A body corporate may change from open-ended to closed-ended (and vice versa) if, taking an overall view, circumstances change so that a hypothetical reasonable investor would consider that the investment condition is no longer met (or vice versa). This might happen where, for example, an open-ended investment company stops its policy of redeeming shares or securities at regular intervals (so removing the expectation that a reasonable investor would be able to realise his investment within a period appearing to him to be reasonable). See also AUTH App 2.7.5G. |
3 | Does the liquidation of a body corporate affect the assessment of whether or not the body is an open-ended investment company? | The FSA considers that the possibility that a body corporate that would otherwise be regarded as closed-ended may be wound up has no effect at all on the nature of the body corporate before the winding up. The fact that, on a winding up, the shares or securities of any investor in the body corporate may be converted into cash or money on the winding up (and so 'realised') would not, in the FSA's view, affect the outcome of applying the expectation test to the body corporate when looked at as a whole. The answer to Question 4 explains that investment in a closed-ended fixed term company shortly before its winding up does not, in the FSA's view, change the closed-ended nature of the company. For companies with no fixed term, the theoretical possibility of a winding up at some uncertain future point is not, in the FSA's view, a matter that would generally carry weight with a reasonable investor in assessing whether he could expect to be able to realise his investment within a reasonable period. |
4 | Does a fixed term closed-ended investment company become an open-ended investment company simply because the fixed term will expire? | In the FSA's view, the answer to this is 'no'. The termination of the body corporate is an event that has always been contemplated (and it will appear in the company's constitution). Even as the date of the expiry of the fixed term approaches, there is nothing about the body corporate itself that changes so as to cause a fundamental reassessment of its nature as something other than closed-ended. Addressing this very point in parliamentary debate, the Economic Secretary to the Treasury stated that the "aim and effect [of the definition] is to cover companies that look, to a reasonable investor, like open-ended investment companies". The Minister added that "A reasonable investor's overall expectations of potential investment in a company when its status with respect to the definition is being judged will determine whether it meets the definition. The matter is therefore, definitional rather than one of proximity to liquidation". (Hansard HC, 5 June 2000 col 124). |
5 | In what circumstances will a body corporate that issues a mixture of redeemable and non-redeemable shares or securities be an open-ended investment company? | In the FSA's view, the existence of non-redeemable shares or securities will not, of itself, rule out the possibility of a body corporate falling within the definition of an open-ended investment company. All the relevant circumstances will need to be considered (see AUTH App 2.6.4, AUTH App 2.8.8G and AUTH App 2.8.9G). So the following points need to be taken into account.(1) The precise terms of the issue of all the shares or securities will be relevant to the question whether the investment condition is met, as will any arrangements that may exist to allow the investor to realise his investment by other means.(2) The proportions of the different share classes will be relevant to the impression the reasonable investor forms of the body corporate. A body corporate that issues only a minimal amount of redeemable shares or securities will not, in the FSA view, be an open-ended investment company. A body corporate that issues a minimal amount of non-redeemable shares or securities will be likely to be an open-ended investment company. A body corporate that falls within the definition of an open-ended investment company is likely to have (and to be marketed as having) mainly redeemable shares or securities. However, whether or not the body corporate does fall within the definition in any particular case will be subject to any contrary indications there may be in its constitutional documents or otherwise. (3) Where shares or securities are only redeemable after the end of a stated period, this factor will make it more likely that the body corporate is open-ended than if the shares or securities are never redeemable. |
6 | Does "realised on a basis calculated wholly or mainly by reference to..." in section 236(3)(b) apply to an investor buying investment trust company shares traded on a recognised investment exchange because of usual market practice that the shares trade at a discount to asset value? | In the FSA's view, the answer is 'no' (for the reasons set out in AUTH App 2.9.4G to AUTH App 2.9.6G). |
7 | Does the practice of UK investment trust companies buying back shares result in them becoming open-ended investment companies? | In the FSA's view, it does not, because its actions will comply with company law: see section 236(4) of the Act and AUTH App 2.6.5 G. |
8 | Would a body corporate holding out redemption or repurchase of its shares or securities every six months be an open-ended investment company? | In the FSA's view a period of six months would generally be too long to be a reasonable period for a liquid securities fund. A shorter period affording more scope for an investor to take advantage of any profits caused by fluctuations in the market would be more likely to be a reasonable period for the purpose of the realisation of the investment (in the context of the 'expectation' test, see AUTH App 2.8 and, in particular, AUTH App 2.8.9G which sets out the kind of factors that may need to be considered in applying the test). |
9 | Would an initial period during which it is not possible to realise investment in a body corporate mean that the body corporate could not satisfy the investment condition? | In the FSA's view, the answer to that question is 'no'. In applying the investment condition, the body corporate must be considered as a whole (see AUTH App 2.6.3G). At the time that the shares or securities in a body corporate are issued, a reasonable investor may expect that he will be able to realise his investment within a reasonable period notwithstanding that there will first be a short-term delay before he can do so. Whether or not the 'expectation test' is satisfied will depend on all the circumstances (see AUTH App 2.8.9G). |
- 01/10/2002
AUTH App 3
Guidance on the scope of the regulated
activity of issuing e-money
AUTH App 3.1
Application and purpose
- 01/12/2004
Application
AUTH App 3.1.1
See Notes
- 27/04/2002
AUTH App 3.1.2
See Notes
- 27/04/2002
Purpose
AUTH App 3.1.3
See Notes
- 27/04/2002
AUTH App 3.1.4
See Notes
- 27/04/2002
AUTH App 3.1.5
See Notes
- 27/04/2002
AUTH App 3.2
The regulated activity of issuing e-money
- 01/12/2004
The Regulated Activities Order
AUTH App 3.2.1
See Notes
- 27/04/2002
AUTH App 3.2.2
See Notes
- 27/04/2002
AUTH App 3.2.3
See Notes
- 27/04/2002
AUTH App 3.2.4
See Notes
- 27/04/2002
AUTH App 3.2.5
See Notes
- 27/04/2002
The E-Money Directive
AUTH App 3.2.6
See Notes
- 27/04/2002
AUTH App 3.2.7
See Notes
- 27/04/2002
AUTH App 3.2.8
See Notes
- 27/04/2002
AUTH App 3.2.9
See Notes
- 27/04/2002
AUTH App 3.2.10
See Notes
- 27/04/2002
Exclusions
AUTH App 3.2.11
See Notes
- 27/04/2002
The issuer of e-money
AUTH App 3.2.12
See Notes
- 27/04/2002
AUTH App 3.2.13
See Notes
- 27/04/2002
AUTH App 3.2.14
See Notes
- 27/04/2002
Exclusion from the definition of deposit
AUTH App 3.2.15
See Notes
- 27/04/2002
AUTH App 3.2.16
See Notes
- 27/04/2002
AUTH App 3.2.17
See Notes
- 27/04/2002
AUTH App 3.2.18
See Notes
- 27/04/2002
AUTH App 3.2.19
See Notes
- 27/04/2002
Transitionals
AUTH App 3.2.20
See Notes
- 27/04/2002
AUTH App 3.2.21
See Notes
- 27/04/2002
AUTH App 3.2.22
See Notes
a) an EEA firm of the kind mentioned in paragraph 5(b) or (c) of Schedule 3 to the Act qualified for authorisation under that Schedule; and
b) the activities which were treated as permitted activities for the purposes of paragraph 13 or 14 of that Schedule as it applied to that person included issuing e-money; the firm'spermission under paragraph 15 of that Schedule is to be treated as including permission to carry on that activity.
- 27/04/2002
AUTH App 3.2.23
See Notes
- 27/04/2002
AUTH App 3.2.24
See Notes
- 27/04/2002
AUTH App 3.2.25
See Notes
- 27/04/2002
AUTH App 3.2.26
See Notes
- 27/04/2002
AUTH App 3.2.27
See Notes
- 27/04/2002
AUTH App 3.2.28
See Notes
- 27/04/2002
AUTH App 3.2.29
See Notes
- 27/04/2002
AUTH App 3.3
Elements of the definition of e-money
- 01/12/2004
Monetary value
AUTH App 3.3.1
See Notes
- 27/04/2002
Storage on an electronic device
AUTH App 3.3.2
See Notes
- 27/04/2002
AUTH App 3.3.3
See Notes
- 27/04/2002
AUTH App 3.3.4
See Notes
- 27/04/2002
Prepayment
AUTH App 3.3.5
See Notes
- 27/04/2002
AUTH App 3.3.6
See Notes
- 27/04/2002
AUTH App 3.3.7
See Notes
- 27/04/2002
AUTH App 3.3.8
See Notes
- 27/04/2002
AUTH App 3.3.9
See Notes
- 27/04/2002
Multipurpose
AUTH App 3.3.10
See Notes
- 27/04/2002
AUTH App 3.3.11
See Notes
- 27/04/2002
AUTH App 3.3.12
See Notes
- 27/04/2002
AUTH App 3.3.13
See Notes
- 27/04/2002
Accounted e-money schemes
AUTH App 3.3.14
See Notes
- 27/04/2002
AUTH App 3.3.15
See Notes
- 27/04/2002
AUTH App 3.3.16
See Notes
- 27/04/2002
AUTH App 3.3.17
See Notes
- 27/04/2002
AUTH App 3.3.18
See Notes
- 27/04/2002
AUTH App 3.3.19
See Notes
- 27/04/2002
AUTH App 3.3.20
See Notes
- 27/04/2002
AUTH App 3.3.21
See Notes
- 27/04/2002
AUTH App 3.4
Financial promotion
- 01/12/2004
AUTH App 3.4.1
See Notes
- 27/04/2002
AUTH App 3.4.2
See Notes
- 27/04/2002
AUTH App 3.4.3
See Notes
- 27/04/2002
AUTH App 3.4.4
See Notes
- 27/04/2002
AUTH App 3.4.5
See Notes
- 27/04/2002
AUTH App 3.4.6
See Notes
- 27/04/2002
AUTH App 3.4.7
See Notes
- 27/04/2002
AUTH App 4
Guidance on regulated activities connected with mortgages
AUTH App 4.1
Application and purpose
- 01/12/2004
Application
AUTH App 4.1.1
See Notes
- 31/10/2004
Purpose of guidance
AUTH App 4.1.2
See Notes
- 31/10/2004
Effect of guidance
AUTH App 4.1.3
See Notes
- 31/10/2004
AUTH App 4.1.4
See Notes
- 31/10/2004
AUTH App 4.1.5
See Notes
- 31/10/2004
Guidance on other activities
AUTH App 4.1.6
See Notes
- 31/10/2004
AUTH App 4.2
Introduction
- 01/12/2004
Requirement for authorisation or exemption
AUTH App 4.2.1
See Notes
- 31/10/2004
Professional firms
AUTH App 4.2.2
See Notes
- 31/10/2004
Questions to be considered to decide if authorisation is required
AUTH App 4.2.3
See Notes
- 31/10/2004
AUTH App 4.2.4
See Notes
- 31/10/2004
AUTH App 4.2.5
See Notes
- 31/10/2004
AUTH App 4.3
Regulated activities related to mortgages
- 01/12/2004
AUTH App 4.3.1
See Notes
- 31/10/2004
AUTH App 4.3.2
See Notes
- 31/10/2004
The business test
AUTH App 4.3.3
See Notes
- 31/10/2004
AUTH App 4.3.4
See Notes
- 31/10/2004
AUTH App 4.3.5
See Notes
Summary of which variant of the business test applies to the different regulated mortgage activities.
This table belongs to AUTH App 4.3.4 G
By way of business | Carrying on the business |
Entering into a regulated mortgage contract (article 61(1)) Administering a regulated mortgage contract (article 61(2)) (and the contract administered must have been entered into by way of business) |
Arranging (bringing about) regulated mortgage contracts (article 25A(1)) Making arrangements with a view to regulated mortgage contracts (article 25A(2)) Advising on regulated mortgage contracts (article 53A) |
- 31/10/2004
AUTH App 4.3.6
See Notes
- 31/10/2004
AUTH App 4.3.7
See Notes
- 31/10/2004
AUTH App 4.3.8
See Notes
- 31/10/2004
AUTH App 4.3.9
See Notes
- 31/10/2004
AUTH App 4.4
What is a regulated mortgage contract?
- 01/12/2004
The definition of "regulated mortgage contract"
AUTH App 4.4.1
See Notes
- 31/10/2004
Which borrowers?
AUTH App 4.4.2
See Notes
- 31/10/2004
Date the contract is entered into
AUTH App 4.4.3
See Notes
- 31/10/2004
AUTH App 4.4.4
See Notes
- 31/10/2004
Land in the United Kingdom
AUTH App 4.4.5
See Notes
- 31/10/2004
Occupancy requirement
AUTH App 4.4.6
See Notes
- 31/10/2004
AUTH App 4.4.7
See Notes
- 31/10/2004
AUTH App 4.4.8
See Notes
- 31/10/2004
AUTH App 4.4.9
See Notes
- 31/10/2004
Purpose of the loan is irrelevant
AUTH App 4.4.10
See Notes
- 31/10/2004
Type of lending
AUTH App 4.4.11
See Notes
- 31/10/2004
AUTH App 4.4.12
See Notes
- 31/10/2004
Regulated mortgage contracts and contract variations
AUTH App 4.4.13
See Notes
- 31/10/2004
AUTH App 4.4.14
See Notes
- 31/10/2004
AUTH App 4.5
Arranging regulated mortgage contracts
- 01/12/2004
Definition of the regulated activities involving arranging
AUTH App 4.5.1
See Notes
- 31/10/2004
AUTH App 4.5.2
See Notes
- 31/10/2004
AUTH App 4.5.3
See Notes
- 31/10/2004
Exclusion: article 25A(1) arrangements not causing a deal
AUTH App 4.5.4
See Notes
- 31/10/2004
Exclusion: article 25A(2) arrangements enabling parties to communicate
AUTH App 4.5.5
See Notes
- 31/10/2004
AUTH App 4.5.6
See Notes
- 31/10/2004
Exclusion: article 25A(1) and (2) arranging of contracts to which the arranger is a party
AUTH App 4.5.7
See Notes
- 31/10/2004
Exclusion: article 25A(1) and (2) arrangements with or through authorised persons
AUTH App 4.5.8
See Notes
- 31/10/2004
Exclusion: article 25A(1)(b) arrangements made in the course of administration by authorised person
AUTH App 4.5.9
See Notes
- 31/10/2004
Exclusion: article 25A(2) arrangements and introducing
AUTH App 4.5.10
See Notes
- 31/10/2004
AUTH App 4.5.11
See Notes
- 31/10/2004
AUTH App 4.5.12
See Notes
- 31/10/2004
AUTH App 4.5.13
See Notes
- 31/10/2004
AUTH App 4.5.14
See Notes
- 31/10/2004
AUTH App 4.5.15
See Notes
- 31/10/2004
AUTH App 4.5.16
See Notes
- 31/10/2004
AUTH App 4.5.17
See Notes
- 31/10/2004
AUTH App 4.5.18
See Notes
- 31/10/2004
Other exclusions
AUTH App 4.5.19
See Notes
- 31/10/2004
AUTH App 4.6
Advising on regulated mortgage contracts
- 01/12/2004
Definition of 'advising on regulated mortgage contracts'
AUTH App 4.6.1
See Notes
- 31/10/2004
AUTH App 4.6.2
See Notes
- 31/10/2004
AUTH App 4.6.3
See Notes
- 31/10/2004
AUTH App 4.6.4
See Notes
- 31/10/2004
Advice must relate to a particular regulated mortgage contract
AUTH App 4.6.5
See Notes
- 31/10/2004
AUTH App 4.6.6
See Notes
- 31/10/2004
AUTH App 4.6.7
See Notes
Typical recommendations and whether they will be regulated as advice under article 53A of the Regulated Activities Order
This table belongs to AUTH App 4.6.5 G
Regulated or not? | |
I recommend you take out the ABC Building Society 2 year fixed rate mortgage at 5%. | Yes. This is advice which steers the borrower in the direction of a particular mortgage which the borrower could enter into. |
I recommend you do not take out the ABC Building Society 2 year fixed rate mortgage at 5%. | Yes. This is advice which steers the borrower away from a particular mortgage which the borrower could have entered into. |
I recommend that you take out either the ABC Building Society 2 year fixed rate mortgage at 5% or the XYZ Bank standard variable rate mortgage. | Yes. This is advice which steers the borrower in the direction of more than one particular mortgage which the borrower could enter into. |
I recommend you take out (or do not take out) an ABC Building Society fixed rate mortgage. | This will depend on the circumstances. If, for example, the society only offers one such mortgage, this would be a recommendation intended implicitly to steer the borrower in the direction of that particular mortgage which the borrower could enter into and therefore would be advice. |
I suggest you take out (or do not take out) a mortgage with ABC Building Society. | No. This is not advice which steers the borrower in the direction of a particular mortgage which the borrower could enter into. However, if the society only offers one mortgage, this would be a recommendation intended implicitly to steer the borrower in the direction of that particular mortgage which the borrower could enter into and therefore would be advice. |
I suggest you change (or do not change) your current mortgage from a variable rate to a fixed rate. | No in respect of the advice about rate type, as this does not steer the borrower in the direction of a particular mortgage which the borrower could enter into. Yes in respect of the advice about varying the terms of the particular mortgage that the borrower had already entered into. |
I suggest you take out (or do not take out) a variable rate mortgage. | No. This is not advice which steers the borrower in the direction of a particular mortgage which the borrower could enter into. |
I recommend you take out (or do not take out) a mortgage. | No. This is not advice which steers the borrower in the direction of a particular mortgage which the borrower could enter into. |
I would always recommend buying a house and taking out a mortgage as opposed to renting a property. | No. This is an example of generic advice which does not steer the borrower in the direction of a particular mortgage that he could enter into. |
I recommend you do not borrow more than you can comfortably afford. | No. This is an example of generic advice. |
If you are looking for flexibility with your mortgage I would recommend you explore the possibilities of either a flexible mortgage or an off-set mortgage. There are a growing number of lenders offering both. | No. This is an example of generic advice. |
- 31/10/2004
AUTH App 4.6.8
See Notes
- 31/10/2004
AUTH App 4.6.9
See Notes
- 31/10/2004
Advice given to a person in his capacity as a borrower or potential borrower
AUTH App 4.6.10
See Notes
- 31/10/2004
AUTH App 4.6.11
See Notes
- 31/10/2004
AUTH App 4.6.12
See Notes
- 31/10/2004
Advice or information
AUTH App 4.6.13
See Notes
- 31/10/2004
AUTH App 4.6.14
See Notes
- 31/10/2004
AUTH App 4.6.15
See Notes
- 31/10/2004
AUTH App 4.6.16
See Notes
- 31/10/2004
Advice must relate to the merits (of entering into as borrower or varying)
AUTH App 4.6.17
See Notes
- 31/10/2004
AUTH App 4.6.18
See Notes
- 31/10/2004
AUTH App 4.6.19
See Notes
- 31/10/2004
AUTH App 4.6.20
See Notes
- 31/10/2004
Scripted questioning (including decisions trees)
AUTH App 4.6.21
See Notes
- 31/10/2004
AUTH App 4.6.22
See Notes
- 31/10/2004
AUTH App 4.6.23
See Notes
- 31/10/2004
AUTH App 4.6.24
See Notes
- 31/10/2004
AUTH App 4.6.25
See Notes
- 31/10/2004
Medium used to give advice
AUTH App 4.6.26
See Notes
- 31/10/2004
AUTH App 4.6.27
See Notes
- 31/10/2004
AUTH App 4.6.28
See Notes
- 31/10/2004
AUTH App 4.6.29
See Notes
- 31/10/2004
Exclusion: periodical publications, broadcasts and websites
AUTH App 4.6.30
See Notes
- 31/10/2004
Exclusion: advice in the course of administration by authorised person
AUTH App 4.6.31
See Notes
- 31/10/2004
Other exclusions
AUTH App 4.6.32
See Notes
- 31/10/2004
AUTH App 4.7
Entering into a regulated mortgage contract
- 01/12/2004
Definition of 'entering into a regulated mortgage contract'
AUTH App 4.7.1
See Notes
- 31/10/2004
Exclusions
AUTH App 4.7.2
See Notes
- 31/10/2004
Transfer of lending obligations
AUTH App 4.7.3
See Notes
- 31/10/2004
AUTH App 4.8
Administering a regulated mortgage contract
- 01/12/2004
Definition of 'administering a regulated mortgage contract'
AUTH App 4.8.1
See Notes
- 31/10/2004
AUTH App 4.8.2
See Notes
- 31/10/2004
AUTH App 4.8.3
See Notes
- 31/10/2004
Exclusion: arranging administration by authorised persons
AUTH App 4.8.4
See Notes
- 31/10/2004
AUTH App 4.8.5
See Notes
- 31/10/2004
AUTH App 4.8.6
See Notes
- 31/10/2004
Exclusion: administration pursuant to agreement with authorised person
AUTH App 4.8.7
See Notes
- 31/10/2004
Other exclusions
AUTH App 4.8.8
See Notes
- 31/10/2004
AUTH App 4.9
Agreeing to carry on a regulated activity
- 01/12/2004
AUTH App 4.9.1
See Notes
- 31/10/2004
AUTH App 4.9.2
See Notes
- 31/10/2004
AUTH App 4.10
Exclusions applying to more than one regulated activity
- 01/12/2004
Exclusion: Activities carried on in the course of a profession or non-investment business
AUTH App 4.10.1
See Notes
- 31/10/2004
AUTH App 4.10.2
See Notes
- 31/10/2004
AUTH App 4.10.3
See Notes
- 31/10/2004
AUTH App 4.10.4
See Notes
- 31/10/2004
Exclusion: Trustees, nominees and personal representatives
AUTH App 4.10.5
See Notes
- 31/10/2004
AUTH App 4.10.6
See Notes
- 31/10/2004
AUTH App 4.10.7
See Notes
- 31/10/2004
AUTH App 4.10.8
See Notes
- 31/10/2004
AUTH App 4.11
Link between activities and the United Kingdom
- 01/12/2004
Introduction
AUTH App 4.11.1
See Notes
- 31/10/2004
AUTH App 4.11.2
See Notes
- 31/10/2004
Legislative provisions: definition of "regulated mortgage contract"
AUTH App 4.11.3
See Notes
- 31/10/2004
Legislative provisions: section 418 of the Act
AUTH App 4.11.4
See Notes
- 31/10/2004
AUTH App 4.11.5
See Notes
- 31/10/2004
Legislative provisions: overseas persons exclusion
AUTH App 4.11.6
See Notes
- 31/10/2004
AUTH App 4.11.7
See Notes
- 31/10/2004
Territorial scenarios: general
AUTH App 4.11.8
See Notes
- 31/10/2004
AUTH App 4.11.9
See Notes
Simplified summary of the territorial scope of the regulated mortgage activities, to be read in conjunction with the rest of this section.
This table belongs to AUTH App 4.11.8 G
Individual borrower resident and located: | |||
in the UK | outside the UK | ||
Service provider carrying on regulated activity from establishment: | in the UK | Yes | Yes |
outside the UK | Yes | No | |
Yes = authorisation or exemption required | |||
No = authorisation or exemption not required |
- 31/10/2004
AUTH App 4.11.10
See Notes
- 31/10/2004
AUTH App 4.11.11
See Notes
- 31/10/2004
Service provider overseas: general
AUTH App 4.11.12
See Notes
- 31/10/2004
Service provider overseas: arranging regulated mortgage contracts
AUTH App 4.11.13
See Notes
- 31/10/2004
AUTH App 4.11.14
See Notes
- 31/10/2004
Service provider overseas: advising on regulated mortgage contracts
AUTH App 4.11.15
See Notes
- 31/10/2004
Service provider overseas: entering into a regulated mortgage contract
AUTH App 4.11.16
See Notes
- 31/10/2004
AUTH App 4.11.17
See Notes
- 31/10/2004
Service provider overseas: administering a regulated mortgage contract
AUTH App 4.11.18
See Notes
- 31/10/2004
AUTH App 4.11.19
See Notes
- 31/10/2004
Service provider: agreeing to carry on a regulated activity
AUTH App 4.11.20
See Notes
- 31/10/2004
E-Commerce Directive
AUTH App 4.11.21
See Notes
- 31/10/2004
Distance marketing directive
AUTH App 4.11.22
See Notes
- 31/10/2004
AUTH App 4.12
Appointed representatives
- 01/12/2004
What is an appointed representative?
AUTH App 4.12.1
See Notes
- 31/10/2004
AUTH App 4.12.2
See Notes
- 31/10/2004
AUTH App 4.12.3
See Notes
- 31/10/2004
Persons who are not already appointed representatives
AUTH App 4.12.4
See Notes
- 31/10/2004
Persons who are already appointed representatives
AUTH App 4.12.5
See Notes
- 31/10/2004
AUTH App 4.13
Other exemptions
- 01/12/2004
AUTH App 4.13.1
See Notes
- 31/10/2004
AUTH App 4.14
Mortgage activities carried on by professional firms
- 01/12/2004
Introduction
AUTH App 4.14.1
See Notes
- 31/10/2004
AUTH App 4.14.2
See Notes
- 31/10/2004
AUTH App 4.14.3
See Notes
- 31/10/2004
AUTH App 4.14.4
See Notes
- 31/10/2004
Part XX exemption: advising on regulated mortgage contracts
AUTH App 4.14.5
See Notes
- 31/10/2004
Part XX exemption: entering into and administering a regulated mortgage contract
AUTH App 4.14.6
See Notes
- 31/10/2004
AUTH App 4.15
Mortgage activities carried on by 'packagers'
- 01/12/2004
Introduction
AUTH App 4.15.1
See Notes
- 31/10/2004
AUTH App 4.15.2
See Notes
- 31/10/2004
Mortgage packaging companies
AUTH App 4.15.3
See Notes
- 31/10/2004
Broker packagers (sometimes called 'intermediary brokers')
AUTH App 4.15.4
See Notes
- 31/10/2004
AUTH App 4.16
Mortgage activities and securitisation
- 01/12/2004
Introduction
AUTH App 4.16.1
See Notes
- 31/10/2004
AUTH App 4.16.2
See Notes
- 31/10/2004
Entering into a regulated mortgage contract
AUTH App 4.16.3
See Notes
- 31/10/2004
Administering, arranging and advising on a regulated mortgage contract
AUTH App 4.16.4
See Notes
- 31/10/2004
AUTH App 4.17
Interaction with the Consumer Credit Act
- 01/12/2004
Entering into and administering a regulated mortgage contract
AUTH App 4.17.1
See Notes
- 31/10/2004
AUTH App 4.17.2
See Notes
- 31/10/2004
AUTH App 4.17.3
See Notes
- 31/10/2004
AUTH App 4.17.4
See Notes
- 31/10/2004
AUTH App 4.17.5
See Notes
- 31/10/2004
Advising on and arranging a regulated mortgage contract
AUTH App 4.17.6
See Notes
- 31/10/2004
AUTH App 4.17.7
See Notes
- 31/10/2004
AUTH App 4.17.8
See Notes
- 31/10/2004
AUTH App 4.17.9
See Notes
- 31/10/2004
AUTH App 4.17.10
See Notes
- 31/10/2004
AUTH App 4.17.11
See Notes
- 31/10/2004
AUTH App 4.17.12
See Notes
- 31/10/2004
AUTH App 4.17.13
See Notes
- 31/10/2004
AUTH App 4.17.14
See Notes
- 31/10/2004
Financial Promotion and advertisements
AUTH App 4.17.15
See Notes
- 31/10/2004
AUTH App 4.17.16
See Notes
- 31/10/2004
AUTH App 4.18
Regulated activities related to mortgages: flowchart
- 01/12/2004
AUTH App 4.18.1
See Notes
- 31/10/2004
AUTH App 5
Guidance on Insurance Mediation Activities
AUTH App 5.1
Application and purpose
- 01/12/2004
Application
AUTH App 5.1.1
See Notes
Purpose of guidance
AUTH App 5.1.2
See Notes
AUTH App 5.1.3
See Notes
AUTH App 5.1.4
See Notes
AUTH App 5.1.5
See Notes
AUTH App 5.1.6
See Notes
Effect of guidance
AUTH App 5.1.7
See Notes
AUTH App 5.1.8
See Notes
AUTH App 5.1.9
See Notes
AUTH App 5.1.10
See Notes
Guidance on other activities
AUTH App 5.1.11
See Notes
AUTH App 5.2
Introduction
- 01/12/2004
AUTH App 5.2.1
See Notes
Requirement for authorisation or exemption
AUTH App 5.2.2
See Notes
Questions to be considered to decide if authorisation is required
AUTH App 5.2.3
See Notes
AUTH App 5.2.4
See Notes
Approach to implementation of the IMD
AUTH App 5.2.5
See Notes
AUTH App 5.2.6
See Notes
AUTH App 5.2.7
See Notes
AUTH App 5.2.8
See Notes
AUTH App 5.2.9
See Notes
Financial promotion
AUTH App 5.2.10
See Notes
AUTH App 5.3
Contracts of insurance
- 01/12/2004
AUTH App 5.3.1
See Notes
Definition
AUTH App 5.3.2
See Notes
AUTH App 5.3.3
See Notes
AUTH App 5.3.4
See Notes
AUTH App 5.3.5
See Notes
AUTH App 5.3.6
See Notes
Connected contracts of insurance
AUTH App 5.3.7
See Notes
Large risks
AUTH App 5.3.8
See Notes
Specified investments
AUTH App 5.3.9
See Notes
AUTH App 5.3.10
See Notes
AUTH App 5.3.11
See Notes
AUTH App 5.4
The business test
- 01/12/2004
AUTH App 5.4.1
See Notes
AUTH App 5.4.2
See Notes
AUTH App 5.4.3
See Notes
AUTH App 5.4.4
See Notes
AUTH App 5.4.5
See Notes
AUTH App 5.4.6
See Notes
AUTH App 5.4.7
See Notes
AUTH App 5.4.8
See Notes
Table: Carrying on insurance mediation activities 'for remuneration' and 'by way of business'
Carrying on insurance mediation activities 'for remuneration' and 'by way of business' | ||
'For remuneration' | ||
Factor | Indicators that P does not carry on activities "for remuneration" | Indicators that P does carry on activities "for remuneration" |
Direct remuneration, whether received from the customer or the insurer/broker (cash or benefits in kind such as tickets to the opera, a reduction in other insurance premiums, a remission of a debt or any other benefit capable of being measured in money's worth) | P does not receive any direct remuneration specifically identified as a reward for his carrying on insurance mediation activities. | P receives direct remuneration specifically identified as being a reward for providing insurance mediation services. |
Indirect remuneration (such as any form of economic benefit as may be explicitly or implicitly agreed between P and the insurer/broker or P's customer - including, for example, through the acceptance of P's terms and conditions or mutual recognition of the economic benefit that is likely to accrue to P). An indirect economic benefit can include expectation of making a profit of some kind as a result of carrying on insurance mediation activities as part of other services. | P does not obtain any form of indirect remuneration through an economic benefit other than one which is not likely to have a material effect on P's ability to make a profit from his other activities. | P obtains an
economic benefit that: (a) is explicitly or implicitly agreed between P and the insurer/broker or P's customer; and (b) has the potential to go beyond mere cost recovery through fees or other benefits received for providing a package of services that includes insurance mediation activities but where no particular part of the fees is attributable to insurance mediation activities. This could include where insurance mediation activity are likely to: • play a material part in the success of P's other business activities or in P's ability to make a profit from them; or • provide P with a materially increased opportunity to provide other goods or services; or • be a major selling point for P's other business activities; or • be essential for P to provide other goods or services. P charges his customers a greater amount for other goods or services than would be the case if P were not also carrying on insurance mediation activities for those customers and this: • is explicitly or implicitly agreed between P and the insurer/broker or P's customer; and • has the potential to go beyond mere cost recovery. |
Recovery of costs | P receives no benefits of any kind (direct or indirect) in respect of his insurance mediation activities beyond the reimbursement of his actual costs incurred in carrying on the activity (including receipt by P of a sum equal to the insurance premium that P is to pass on to the insurer or broker). | P receives benefits of any kind (direct or indirect) in respect of his insurance mediation activities which go beyond the reimbursement of his actual costs incurred in carrying on the activity. |
'By way of business' | ||
Factor | Indicators that P does not carry on activities "by way of business" | Indicators that P does carry on activities "by way of business" |
Regularity/ frequency | Involvement
is one-off or infrequent (for instance, once or twice a year) provided that
the transaction(s) is not of such size and importance that it is essential
to the success of P's other business activities. Transactions do not result from formal arrangements (for instance, occasional involvement purely as a result of an unsolicited approach). | Involvement
is frequent (for instance, once a week). Involvement is infrequent but the transactions are of such size or importance that they are essential to the success of P's other business activities. P has formal arrangements which envisage transactions taking place on a regular basis over time (whether or not such transactions turn out in practice to be regular). |
Holding out | P does not hold himself out as providing a professional service that includes insurance mediation activities (by professional is meant not the services of a layman). | P holds himself out as providing a professional service that includes insurance mediation activities. |
Relevance to other activities/ business |
Insurance mediation activities: • have no relevance to P's other activities; or • have some relevance but could easily be ceased without causing P any difficulty in carrying on his main activities; or • would be unlikely to result in a material reduction in income from P's main activities if ceased |
Insurance mediation activities: • are essential to P in carrying on his main activities; or • would cause a material disruption to P carrying on his main activities if ceased; or • would be likely to reduce P's income by a material amount. |
Commercial benefit | P receives no
direct or indirect pecuniary or economic benefit. P is a layman and acting in that capacity. P would not obtain materially less income from his main activities if they did not include insurance mediation activities. | P receives a
direct or indirect pecuniary or economic benefit from carrying on insurance mediation activities -
such as a fee, a benefit in kind or the likelihood of materially enhanced
sales of other goods or services that P provides. P would obtain materially less income from his main activities if they did not include insurance mediation activities. |
AUTH App 5.5
The regulated activities: dealing in contracts as agent
- 01/12/2004
AUTH App 5.5.1
See Notes
AUTH App 5.5.2
See Notes
AUTH App 5.5.3
See Notes
AUTH App 5.6
The regulated activities: arranging deals in, and making arrangements with a view to transactions in, contracts of insurance
- 01/12/2004
AUTH App 5.6.1
See Notes
Article 25(1): arranging (bringing about) deals in investments
AUTH App 5.6.2
See Notes
Article 25(2): making arrangements with a view to transactions in investments
AUTH App 5.6.3
See Notes
AUTH App 5.6.4
See Notes
Exclusion: article 72C (Provision of information on an incidental basis)
AUTH App 5.6.5
See Notes
AUTH App 5.6.6
See Notes
AUTH App 5.6.7
See Notes
AUTH App 5.6.8
See Notes
AUTH App 5.6.9
See Notes
Exclusion from article 25(2): arrangements enabling parties to communicate
AUTH App 5.6.10
See Notes
AUTH App 5.6.11
See Notes
Exclusion from article 25(2): transactions to which the arranger is a party
AUTH App 5.6.12
See Notes
AUTH App 5.6.13
See Notes
AUTH App 5.6.14
See Notes
AUTH App 5.6.15
See Notes
AUTH App 5.6.16
See Notes
Exclusion from article 25(2) for introducing
AUTH App 5.6.17
See Notes
AUTH App 5.6.18
See Notes
AUTH App 5.6.19
See Notes
AUTH App 5.6.20
See Notes
AUTH App 5.6.21
See Notes
Application of article 33 to arrangements for making introductions. This table belongs to AUTH App 5.6.20 G.
Type of introduction | Applicability of exclusion | |
1 | Introductions are purely for the purpose of the provision of independent advice - Introducer is completely indifferent to whether or not transactions take place after advice has been given. | Exclusion not relevant as introducer is not arranging under article 25(2). |
2 | Introduction is one-off or otherwise not part of pre-existing ongoing arrangements that envisage such introduction being made. | Exclusion not relevant as introducer is not arranging under article 25(2). |
3 | Introducer is not indifferent to whether or not transactions take place after advice has been given, but is indifferent to whether or not the transactions may involve a contract of insurance. | Exclusion will be available provided the introduction was made with a view to the provision of independent advice on investments generally. |
4 | Introducer is not indifferent to whether or not transactions take place after advice has been given (for example, because he expects to receive a percentage of the commission), and introductions specifically relate to contracts of insurance. | Exclusion is not available. If introducer is an unauthorised person, he will need authorisation or exemption as an designated investment business. If introducer is an authorised person (such as an IFA introducing to a general insurance broker), he will need to vary his Part IV permission accordingly. If introducer is an appointed representative, he will need to ensure that his agreement covers making such arrangements. |
Exclusion from article 25(2): arrangements for the provision of finance
AUTH App 5.6.22
See Notes
Other exclusions
AUTH App 5.6.23
See Notes
AUTH App 5.7
The regulated activities: assisting in the administration and performance of a contract of insurance
- 01/12/2004
AUTH App 5.7.1
See Notes
AUTH App 5.7.2
See Notes
AUTH App 5.7.3
See Notes
AUTH App 5.7.4
See Notes
AUTH App 5.7.5
See Notes
AUTH App 5.7.6
See Notes
Exclusions
AUTH App 5.7.7
See Notes
AUTH App 5.7.8
See Notes
AUTH App 5.8
The regulated activities: advising on contracts of insurance
- 01/12/2004
AUTH App 5.8.1
See Notes
AUTH App 5.8.2
See Notes
AUTH App 5.8.3
See Notes
Advice must relate to a particular contract of insurance
AUTH App 5.8.4
See Notes
AUTH App 5.8.5
See Notes
Typical recommendations and whether they will be regulated as advice on contracts of insurance under article 53 of the Regulated Activities Order. This table belongs to AUTH App 5.8.4 G
Recommendation | Regulated under article 53 or not? |
I recommend you take the ABC Insurers motor insurance policy | Yes |
I recommend that you take out the GHI Insurers life insurance policy | Yes |
I recommend that you do not take out the ABC Insurers motor insurance policy | Yes |
I recommend that you do not take out the GHI Insurers life insurance policy | Yes |
I recommend that you take out either the ABC Insurers motor insurance policy or the DEF Insurers motor insurance policy | Yes |
I recommend that you take out either the GHI Insurers life insurance policy or the JKL Insurers life insurance policy | Yes |
I recommend that you take out (or do not take out) insurance with ABC Insurers | Possibly (depending on whether or not the circumstances relating to the recommendation, including the range of possible products, is such that this amounts to an implied recommendation of a particular policy) |
I recommend that you take out (or do not take out) contents insurance | No, unless a specific insurance policy is implied by the context |
I recommend that you take out (or do not take out) life insurance | No, unless a specific insurance policy is implied by the context |
Advice given to a person in his capacity as an investor or potential investor
AUTH App 5.8.6
See Notes
AUTH App 5.8.7
See Notes
Advice or information
AUTH App 5.8.8
See Notes
AUTH App 5.8.9
See Notes
AUTH App 5.8.10
See Notes
AUTH App 5.8.11
See Notes
Advice must relate to the merits (of buying or selling a contract of insurance)
AUTH App 5.8.12
See Notes
AUTH App 5.8.13
See Notes
AUTH App 5.8.14
See Notes
Pre-purchase questioning (including decision trees)
AUTH App 5.8.15
See Notes
AUTH App 5.8.16
See Notes
AUTH App 5.8.17
See Notes
AUTH App 5.8.18
See Notes
AUTH App 5.8.19
See Notes
Medium used to give advice
AUTH App 5.8.20
See Notes
AUTH App 5.8.21
See Notes
AUTH App 5.8.22
See Notes
AUTH App 5.8.23
See Notes
Exclusion: periodical publications, broadcasts and web-sites
AUTH App 5.8.24
See Notes
AUTH App 5.8.25
See Notes
Other exclusions
AUTH App 5.8.26
See Notes
AUTH App 5.9
The Regulated Activities: agreeing to carry on a regulated activity
- 01/12/2004
AUTH App 5.9.1
See Notes
AUTH App 5.9.2
See Notes
AUTH App 5.10
Renewals
- 01/12/2004
AUTH App 5.10.1
See Notes
AUTH App 5.11
Other aspects of exclusions
- 01/12/2004
AUTH App 5.11.1
See Notes
AUTH App 5.11.2
See Notes
Exclusions disapplied where activities relate to contracts of insurance
AUTH App 5.11.3
See Notes
AUTH App 5.11.4
See Notes
AUTH App 5.11.5
See Notes
AUTH App 5.11.6
See Notes
Exclusions disapplied in connection with insurance mediation
AUTH App 5.11.7
See Notes
Exclusions applying to more than one regulated activity
AUTH App 5.11.8
See Notes
Activities carried on in the course of a profession or non-investment business
AUTH App 5.11.9
See Notes
AUTH App 5.11.10
See Notes
AUTH App 5.11.11
See Notes
AUTH App 5.11.12
See Notes
Activities carried on by a provider of relevant goods or services
AUTH App 5.11.13
See Notes
AUTH App 5.11.14
See Notes
AUTH App 5.11.15
See Notes
Large risks
AUTH App 5.11.16
See Notes
AUTH App 5.12
Link between activities and the United Kingdom
- 01/12/2004
Introduction
AUTH App 5.12.1
See Notes
AUTH App 5.12.2
See Notes
AUTH App 5.12.3
See Notes
AUTH App 5.12.4
See Notes
Territorial issues relating to overseas insurance intermediaries carrying on insurance mediation activities in or into the United Kingdom
Needs Part IV permission | Schedule 3 EEA passport rights available | Overseas persons exclusion available | |
Registered EEA-based intermediary with UK branch (registered office or head office in another EEA State) | No | Yes | No |
Registered EEA-based intermediary with no UK branch providing cross-border services | No | Yes | Potentially available [see Note 1] |
Third country intermediary operating from branch in UK | Yes | No | No |
Third country intermediary providing services in (or into) UK | Yes unless overseas persons exclusion applies | No | Potentially available |
Note 1. This does not, however, affect the firm's authorisation under Schedule 3 to the Act (see AUTH App 5.12.13 G to AUTH App 5.12.14 G (Passporting)). |
Where are insurance mediation activities carried on?
AUTH App 5.12.5
See Notes
AUTH App 5.12.6
See Notes
AUTH App 5.12.7
See Notes
AUTH App 5.12.8
See Notes
Overseas persons
AUTH App 5.12.9
See Notes
AUTH App 5.12.10
See Notes
How should persons be authorised?
AUTH App 5.12.11
See Notes
AUTH App 5.12.12
See Notes
Passporting
AUTH App 5.12.13
See Notes
AUTH App 5.12.14
See Notes
E-Commerce Directive
AUTH App 5.12.15
See Notes
AUTH App 5.12.16
See Notes
AUTH App 5.12.17
See Notes
AUTH App 5.13
Appointed representatives
- 01/12/2004
What is an appointed representative?
AUTH App 5.13.1
See Notes
AUTH App 5.13.2
See Notes
Business for which an appointed representative is exempt
AUTH App 5.13.3
See Notes
AUTH App 5.13.4
See Notes
Insurance mediation activities able to be carried on by an appointed representative. This table belongs to AUTH App 5.13.3 G
Type of contract of insurance | Regulated activities an appointed representative can carry on |
General insurance contract | •Dealing in investments as agent; •Arranging; •Assisting in the administration and performance of a contract of insurance; •Advising on investments; and • Agreeing to carry on these regulated activities. |
Pure protection contract | •Dealing in investments as agent (but only where the contract is not a long-term care insurance contract); •Arranging; •Assisting in the administration and performance of a contract of insurance; •Advising on investments; and • Agreeing to carry on these regulated activities. |
Life policy (note that this already has effect prior to 14 January 2005) | •Arranging; •Assisting in the administration and performance of a contract of insurance; •Advising on investments; and • Agreeing to carry on these regulated activities |
Persons who are not already appointed representatives
AUTH App 5.13.5
See Notes
Persons who are already appointed representatives
AUTH App 5.13.6
See Notes
AUTH App 5.14
Exemptions
- 01/12/2004
Professionals
AUTH App 5.14.1
See Notes
AUTH App 5.14.2
See Notes
AUTH App 5.14.3
See Notes
AUTH App 5.14.4
See Notes
Other exemptions
AUTH App 5.14.5
See Notes
AUTH App 5.15
Illustrative tables
- 01/12/2004
AUTH App 5.15.1
See Notes
AUTH App 5.15.2
See Notes
AUTH App 5.15.3
See Notes
AUTH App 5.15.4
See Notes
Types of activity -are they regulated activities and, if so, why?
Type of activity | Is it a regulated activity? | Rationale |
MARKETING AND EFFECTING INTRODUCTIONS | ||
Passive display of information-for example, medical insurance brochures in doctor's surgery (whether or not remuneration is received for this activity) | No. | Merely displaying information does not constitute making arrangements under article 25(2) (see AUTH App 5.6.4 G). |
Recommending a broker/insurance undertaking and providing customer with contact details (whether by phone, fax, e-mail, face-to-face or any other means of communication) | Yes, but article 72C may be available. | This will constitute making arrangements under article 25(2). But, the exclusion in article 72C will apply if all the intermediary does is supply information to the customer and the conditions of article 72C are otherwise met (see AUTH App 5.6.5 G to AUTH App 5.6.9 G). Generally, this will not amount to advice under article 53 unless there is an implied recommendation of a particular policy (see AUTH App 5.8.4 G), in which case article 72C would not be available. |
Providing an insurance undertaking/broker with contact details of customer | Yes. | This will constitute making arrangements under article 25(2) when undertaken in the context of regular or ongoing arrangements for introducing customers. Article 72C will not apply because the information is supplied to someone other than the policyholder or potential policyholder. |
Marketing on behalf of insurance undertaking to intermediaries only (for example, broker consultants) | Yes. | This amounts to work preparatory to the conclusion of contracts of insurance and so constitutes making arrangements under article 25(2). Article 72C is not available because this activity does not involve provision of information to the policyholder or potential policyholder only. |
Telemarketing services (that is, companies specialising in marketing an insurance undertaking's products/services to prospective customers) | Yes. | This amounts to introducing and/or other work preparatory to the conclusion of contracts of insurance and so constitutes making arrangements under article 25(2). This could also involve article 25(1) arranging where the telemarketing company actually sells a particular policy and could involve advising on investments. Article 72C will not be available where the provision of information is more than incidental to the telemarketing company's main business or where the telemarketing company is advising on investments. |
PRE-PURCHASE DISCUSSIONS WITH CUSTOMERS AND ADVICE | ||
Discussion with client about need for insurance generally/need to take out a particular type of insurance | Generally, no. Article 72C available if needed. | Not enough, of itself, to constitute making arrangements under article 25(2), but you should consider whether, viewed as a whole, your activities might amount to arranging. If so, article 72C might be of application (see AUTH App 5.6.5 G to AUTH App 5.6.9 G). |
Advising on the level of cover needed | Generally, no. Article 72C available if needed. | Not enough, of itself, to constitute making arrangements under article 25(2), but you should consider whether, viewed as a whole, your activities might amount to making arrangements under article 25(2) (see AUTH App 5.8.3 G). If so, article 72C might be of application (see AUTH App 5.6.5 G to AUTH App 5.6.9 G). |
Pre-purchase questioning in the context of filtered sales (intermediary asks a series of questions and then suggests several policies which suit the answers given) | Yes. Subject to Article 72 C exclusion where available. | This will constitute arranging although article 72C may be of application (see AUTH App 5.6.5 G to AUTH App 5.6.9 G). If there is no express or implied recommendation of a particular policy, this activity will not amount to advice under article 53 (see AUTH App 5.8.15 G to AUTH App 5.8.19 G). |
Explanation of the terms of a particular policy or comparison of the terms of different policies | Possibly. Article 72C available. | This is likely to amount to making arrangements under article 25(2). In certain circumstances, it could involve advising on investments (see AUTH App 5.8.8 G (Advice or information)). Where the explanation is provided to the potential policyholder, and does not involve advising on investments, article 72C may be of application (see AUTH App 5.6.5 G to AUTH App 5.6.9 G), and where information is provided by a professional in the course of a profession, article 67 may apply (see AUTH App 5.11.9 G to AUTH App 5.11.12 G). |
Advising that a customer take out a particular policy | Yes. | This amounts to advice on the merits of a particular policy under article 53 (see AUTH App 5.8.4 G to AUTH App 5.8.5 G). |
Advising that a customer does not take out a particular policy | Yes. | This amounts to advice on the merits of a particular policy under article 53 (see AUTH App 5.8.4 G to AUTH App 5.8.5 G). |
Advice by journalists in newspapers, broadcasts etc. | Generally, no because of the article 54 exclusion. | Article 54 provides an exclusion for advice given in newspapers etc (see AUTH App 5.8.24 G to AUTH App 5.8.25 G). |
Giving advice to a customer in relation to his buying a consumer product, where insurance is a compulsory secondary purchase and/or a benefit that comes with buying the product | Not necessarily but depends on the circumstances | Where the advice relates specifically to the merits of the consumer product, it is possible that references to the accompanying insurance may be seen to be information and not advice. If, however, the advice relates, in part, to the merits of the insurance element, then it will be regulated activity. |
ASSISTING CUSTOMERS WITH COMPLETING/SENDING APPLICATION FORMS | ||
Providing information to customer who fills in application form | Possibly. Subject to article 67 or 72C exclusions where available. | This activity may amount to arranging although the exclusions in article 67 (see AUTH App 5.11.9 G to AUTH App 5.11.12 G) and article 72C (see AUTH App 5.6.5 G to AUTH App 5.6.9 G) may be of application. |
Helping a potential policyholder fill in an application form | Yes. | This activity amounts to arranging. Article 72C will not apply because this activity goes beyond the mere provision of information to a policyholder or potential policyholder (see AUTH App 5.6.5 G to AUTH App 5.6.9 G). |
Receiving completed proposal forms for checking and forwarding to an insurance undertaking (for example, an administration outsourcing service provider that receives and processes proposal forms) | Yes. | This amounts to arranging. Article 72C does not apply because this activity goes beyond the mere provision of information to a policyholder or potential policyholder (see AUTH App 5.6.5 G to AUTH App 5.6.9 G). |
Assisting in completion of proposal form and sending to insurance undertaking | Yes. | This activity amounts to arranging. Article 72C does not apply because this activity goes beyond the mere provision of information (see AUTH App 5.6.5 G to AUTH App 5.6.9 G). |
NEGOTIATING AND CONCLUDING CONTRACTS OF INSURANCE | ||
Negotiating terms of policy on behalf of customer with the insurance undertaking | Yes. | This activity amounts to arranging (see AUTH App 5.6.2 G). |
Negotiating terms of policy on behalf of insurance undertaking with the customer and signing proposal form on his behalf | Yes. | These activities amount to both arranging and dealing in investments as agent. |
Concluding a contract of insurance on insurance company's behalf, for example, motor dealer who has authority to conclude insurance contract on behalf of insurance undertaking when selling a car | Yes. | A person carrying on this activity will be dealing in investments as agent. He will also be arranging (as the article 28 exclusion only applies in the limited circumstances envisaged under article 28(3)) (see AUTH App 5.6.12 G). |
Agreeing, on behalf of a prospective policy holder, to buy a policy. | Yes. | A person who, with authority, enters into a contract of insurance on behalf of another is dealing in investments as agent under article 21, and will also be arranging. |
Providing compulsory insurance as a secondary purchase | Yes. It will amount to dealing in investments as agent or arranging. | The fact that the insurance is secondary to the primary product does not alter the fact that arranging the package involves arranging the insurance. |
COLLECTION OF PREMIUMS | ||
Collection of cheque for premium from the customer at the pre-contract stage. | Yes (as part of arranging). | This activity is likely to form part of arranging. But the mere collection/receipt of premiums from the customer is unlikely, without more, to amount to arranging. |
Collection of premiums at post-contract stage | No. | The mere collection of premiums from policyholders is unlikely, without more, to amount to assisting in the administration and performance of a contract of insurance. |
MID-TERM ADJUSTMENTS AND ASSIGNMENTS | ||
Solicitors or licensed conveyancers discharging client instructions to assign contracts of insurance. | Not where article 67 applies. | As the assignment of rights under a contract of insurance (as opposed to the creation of new contracts of insurance) does not fall within the IMD, article 67 is of potential application (see AUTH App 5.11.9 G to AUTH App 5.11.12 G). |
Making mid-term adjustments to a policy, for example, property manager notifies changes to the names of the leaseholders registered as "interested parties" in the policy in respect of the property. | Yes. | Assuming the freeholder (as policyholder) is obliged under the terms of the policy to notify the insurance undertaking of changes to the identity of the leaseholders, the property manager is likely to be assisting in the administration and the performance of the contract of insurance. |
TRADED ENDOWMENT POLICIES ("TEPs") | ||
Making introductions for the purposes of selling TEPs | Yes, unless article 72C applies. | Making introductions for these purposes is arranging unless article 72C applies (see AUTH App 5.6.5 G to AUTH App 5.6.9 G). The exclusions in article 29 (Arranging deals with or through authorised persons) and 33 (Introducing) no longer apply to arranging contracts of insurance. |
Market makers in TEPs | Yes, although the exclusion in article 28 may apply. | Unauthorised market makers can continue to make use of the exclusions in articles 15 (Absence of holding out etc.) and 16 (Dealing in contractually based investments), where appropriate. In order to avoid the need for authorisation in respect of arranging they may be able to rely upon article 28 (see AUTH App 5.6.12 G). |
ASSISTING POLICYHOLDER WITH MAKING A CLAIM | ||
Merely providing information to the insured to help him complete a claim form | No. | Of itself, this is likely to amount to assisting in the administration but not the performance of a contract of insurance. In the FSA's view, the provision of information in these circumstances is more akin to facilitating performance of a contract of insurance rather than assisting in the performance (see AUTH App 5.7.3 G to AUTH App 5.7.5 G) |
Completion of claim form on behalf of insured | Potentially. | This activity amounts to assisting in the administration of a contract of insurance. Whether this activity amounts to assisting in the administration and performance of a contract of insurance will depend upon whether a person's assistance in filling in a claims form is material to whether performance of the contractual obligation to notify a claim takes place (see AUTH App 5.7.2 G to AUTH App 5.7.3 G). |
Notification of claim to insurance undertaking and helping negotiate its settlement on the policyholder's behalf | Yes. | This activity amounts to assisting in the administration and performance of a contract of insurance (see AUTH App 5.7.4 G). |
ASSISTING INSURANCE UNDERTAKING WITH CLAIMS BY POLICYHOLDERS | ||
Negotiation of settlement of claims on behalf of an insurance undertaking | No. | Claims management on behalf of an insurance undertaking does not amount to assisting in the administration and performance of a contract of insurance by virtue of the exclusion in article 39B (see AUTH App 5.7.7 G). |
Providing information to an insurance undertaking in connection with its investigation or assessment of a claim | No. | This activity does not amount to assisting in the administration and performance of a contract of insurance. |
Loss adjusters and claims management services (for example, by administration outsourcing providers) | Potentially. | These activities may amount to assisting in the administration and performance of a contract of insurance. Article 39B excludes these activities, however, when undertaken on behalf of an insurance undertaking only (see AUTH App 5.7.7 G). |
Providing an expert appraisal of a claim | No. | This activity does not amount to assisting in the administration and performance of a contract of insurance whether carried out on behalf of an insurance undertaking or otherwise. |
Jeweller repairs customer's jewellery pursuant to a policy which permits the jeweller to carry out repairs | No. | This activity does not amount to assisting in the administration and performance of a contract of insurance. It amounts to managing claims on behalf of an insurance undertaking and so falls within the exclusion in article 39B (see AUTH App 5.7.7 G). |
AUTH App 5.15.5
See Notes
AUTH App 5.15.6
See Notes
AUTH App 5.15.7
See Notes
AUTH App 5.15.8
See Notes
AUTH App 5.16
Meaning of insurance mediation
- 01/12/2004
AUTH App 5.16.1
See Notes
AUTH App 5.16.2
See Notes
These activities when undertaken by an insurance undertaking or an employee of an insurance undertaking who is acting under the responsibility of the insurance undertaking shall not be considered as insurance mediation.
The provision of information on an incidental basis in the context of another professional activity provided that the purpose of that activity is not to assist the customer in concluding or performing an insurance contract, the management of claims of an insurance undertaking on a professional basis, and loss adjusting and expert appraisal of claims shall also not be considered as insurance mediation."
AUTH App 6
Guidance on the Identification of Contracts
of Insurance
AUTH App 6.1
Application
- 01/12/2004
AUTH App 6.1.1
See Notes
- 01/08/2004
AUTH App 6.2
Purpose of guidance
- 01/12/2004
AUTH App 6.2.1
See Notes
- 01/08/2004
AUTH App 6.2.2
See Notes
- 01/08/2004
AUTH App 6.3
Background
- 01/12/2004
AUTH App 6.3.1
See Notes
- 01/08/2004
AUTH App 6.3.2
See Notes
- 01/08/2004
AUTH App 6.3.3
See Notes
- 01/08/2004
AUTH App 6.3.4
See Notes
- 01/08/2004
AUTH App 6.4
Limitations of this guidance
- 01/12/2004
AUTH App 6.4.1
See Notes
- 01/08/2004
AUTH App 6.4.2
See Notes
- 01/08/2004
AUTH App 6.4.3
See Notes
- 01/08/2004
AUTH App 6.4.4
See Notes
- 01/08/2004
AUTH App 6.5
General principles
- 01/12/2004
AUTH App 6.5.1
See Notes
- 01/08/2004
AUTH App 6.5.2
See Notes
- 01/08/2004
AUTH App 6.5.3
See Notes
- 01/08/2004
AUTH App 6.5.4
See Notes
- 01/08/2004
AUTH App 6.6
The factors
- 01/12/2004
AUTH App 6.6.1
See Notes
- 01/08/2004
AUTH App 6.6.2
See Notes
- 01/08/2004
AUTH App 6.6.3
See Notes
- 01/08/2004
AUTH App 6.6.4
See Notes
- 01/08/2004
AUTH App 6.6.5
See Notes
- 01/08/2004
AUTH App 6.6.6
See Notes
- 01/08/2004
AUTH App 6.6.7
See Notes
- 01/08/2004
AUTH App 6.6.8
See Notes
- 01/08/2004
AUTH App 6.7
Examples
- 01/12/2004
Example 1: discretionary medical schemes
AUTH App 6.7.1
See Notes
- 01/08/2004
Example 2: disaster recovery business
AUTH App 6.7.2
See Notes
- 01/08/2004
AUTH App 6.7.3
See Notes
- 01/08/2004
AUTH App 6.7.4
See Notes
- 01/08/2004
AUTH App 6.7.5
See Notes
- 01/08/2004
AUTH App 6.7.6
See Notes
- 01/08/2004
Example 3: manufacturers' and retailers' warranties
AUTH App 6.7.7
See Notes
- 01/08/2004
AUTH App 6.7.8
See Notes
- 01/08/2004
AUTH App 6.7.9
See Notes
- 01/08/2004
AUTH App 6.7.10
See Notes
- 01/08/2004
Example 4: separate warranty transactions and extended warranties
AUTH App 6.7.11
See Notes
- 01/08/2004
AUTH App 6.7.12
See Notes
- 01/08/2004
AUTH App 6.7.13
See Notes
- 01/08/2004
AUTH App 6.7.14
See Notes
- 01/08/2004
AUTH App 6.7.15
See Notes
- 01/08/2004
AUTH App 6.7.16
See Notes
- 01/08/2004
Example 5: typical warranty schemes administered by motor dealers
AUTH App 6.7.17
See Notes
- 01/08/2004
Example 6: tax investigation schemes
AUTH App 6.7.18
See Notes
AUTH App 6.7.19
See Notes
Example 7: solicitors' retainers
AUTH App 6.7.20
See Notes
- 01/08/2004
AUTH App 6.7.21
See Notes
- 01/08/2004
Example 8: contracts providing for ultimate repayment of any indemnity ('time and distance cover')
AUTH App 6.7.22
See Notes
- 01/08/2004
Transitional Provisions and Schedules
AUTH TP 1
- 01/12/2004
AUTH Sch 1
Record Keeping Requirements
- 01/12/2004
AUTH Sch 1.1
See Notes
There are no record keeping requirements in AUTH. |
- 03/09/2001
AUTH Sch 2
Notification Requirements
- 01/12/2004
AUTH Sch 2.1
See Notes
Handbook reference | Matter to be notified | Contents of notification | Trigger event | Time allowed |
AUTH 3.9.3 D | Application for Part IV permission | Matters relevant to the application as indicated in the application pack | Application or significant changes to information given in the application | immediately applicant becomes aware |
AUTH 5.3.9 D | Intention of incoming Treaty firm to carry on a regulated activity in the United Kingdom. | Matters relevant to the notice as indicated in the application pack. | Intention to carry on a regulated activity. | At least seven days in advance. |
AUTH 6.3.1 D AUTH 6.3.4 D | Application for approval of person under section 59 of the Act | Matters relevant to the application as indicated in Form A and significant changes to information given in that Form |
AUTH Sch 3
Fees and other required payments
- 01/12/2004
AUTH Sch 3.1
See Notes
Type of Fee | Trigger Event | Date/Time of Payment | Amount/Rate | Handbook reference |
Certification Fee | Application for a certificate under article 54 of the Regulated Activities Order. | On or before the date on which application is made. | See AUTH 4 Annex 1, Part 6 | AUTH 4.3 |
AUTH Sch 4
Powers exercised
- 01/12/2004
AUTH Sch 4.1
See Notes
The following powers and related provisions in the Act have been exercised by the FSA to make the rules in AUTH: | |
Section 156 (General supplementary powers) | |
Paragraph 17(1) of Schedule 1 (Fees). | |
The following power in the Act has been exercised by the FSA to give the guidance in AUTH: | |
Section 157(1) (Guidance). | |
The following powers in the Act have been exercised by the FSA in AUTH to direct and require: | |
Section 51 (Application under this Part). | |
Section 60 (Application for approval). | |
Paragraph 5(4) of Schedule 4 (Treaty Rights: Notice to Authority). |
AUTH Sch 5
Rights of action for damages
- 01/12/2004
AUTH Sch 5.1
See Notes
1 | The table below sets out the rules in AUTH contravention of which by an authorised person may be actionable under section 150 of the Act (Actions for damages) by a person who suffers loss as a result of the contravention. |
2 | If a "Yes" appears in the column headed "For private person?", the rule may be actionable by a "private person" under section 150 (or, in certain circumstances, his fiduciary or representative; see article 6(2) and (3)(c) of the Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001 (SI 2001/2256)). A "Yes" in the column headed "Removed" indicates that the FSA has removed the right of action under section 150(2) of the Act. If so, a reference to the rule in which it is removed is also given. |
3 | The column headed "For other person?" indicates whether the rule may be actionable by a person other than a private person (or his fiduciary or representative) under article 6(2) and (3) of those Regulations. If so, an indication of the type of person by whom the rule may be actionable is given. |
- 03/09/2001
AUTH Sch 5.2
See Notes
- 03/09/2001
AUTH Sch 6
Rules that can be waived
- 01/12/2004