AUTH 1
Introduction to the Authorisation manual
AUTH 1.1
Application and purpose
- 01/12/2004
Application
AUTH 1.1.1
See Notes
This
manual applies to:
(1) a person which
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 to be an authorised
person;
(2) a person which
seeks to become an authorised
person under the Act and
which is, or is considering, applying to the FSA for Part
IV permission to carry on regulated
activities in the United
Kingdom;
(3) an EEA
firm, a Treaty
firm or a UCITS
qualifier that wishes to establish a branch or provide cross-border services into the United Kingdom using EEA rights, Treaty rights or UCITS Directive rights,
or apply for a top-up
permission;
(4) a candidate for
approval under Part V of the Act,
but only in respect of AUTH
6 (Approved persons),
which is of general relevance, and AUTH 8 (Determining applications); and
(5)
persons generally.
- 03/09/2001
Purpose
AUTH 1.1.2
See Notes
The purpose of:
(1)
authorisation is
to allow only persons which
satisfy the necessary conditions (relating, for example, to adequate resources
and suitability - see COND)
to engage in a regulated
activity; and
(2) approval of persons (generally individuals) is to seek
to ensure that only fit and proper persons perform controlled functions in
the financial services industry.
- 03/09/2001
AUTH 1.1.3
See Notes
The purpose of this manual is to give guidance about:
(1) the circumstances in which authorisation is required,
or exempt person status
is available, including guidance on
the activities which are regulated under the Act and the exclusions which are available;
see
AUTH
2
(Authorisation
and regulated activities);
(2) the procedures by which a person can apply for,
or obtain, permission under
the Act to
carry on these regulated
activities and become an authorised
person and any fees payable; see AUTH 3 (Applications for Part IV permission),
AUTH 4 (Authorisation Fees) and AUTH 5 (Qualifying for authorisation
under the Act).
(3) the procedures by which a person seeking to become
an authorised person can
obtain approval for persons to
perform controlled functions under
the approved persons regime;
see AUTH
6 (Approved persons); and
(4) the FSA's powers
in relation to authorisation and
how it will use them (see AUTH 3 and AUTH 5),
including a summary of how applications will be determined; see AUTH 8 (Determining applications).
- 18/10/2001
AUTH 1.2
Introduction
- 01/12/2004
AUTH 1.2.1
See Notes
(1) The Financial Services and Markets Act
2000 (the Act)
is the UK legislation
under which bodies corporate, partnerships, individuals
and unincorporated associations are permitted by the FSA to carry on various financial activities
which are subject to regulation (referred to as regulated activities).
(2) The activities which are regulated activities are
specified in the Financial Services and Markets Act 2000 (Regulated Activities)
Order 2001 (the Regulated
Activities Order): for example, accepting deposits, managing investments, effecting contracts of insurance, dealing in investments as agent.
In general terms, a regulated
activity is an activity, specified in the Order, carried on
in relation to one or more of the investments specified
in the Order.
AUTH
2
gives further guidance on regulated activities and specified investments.
- 03/09/2001
AUTH 1.2.2
See Notes
In order to carry on a regulated activity in the United Kingdom, or even "purport to do so",
section 19 of the Act (The
general prohibition) provides that a person must
be either authorised under
the Act (an authorised person) or exempt
from its provisions (an exempt
person). In this context, a "person" includes both a legal person, for example a body corporate, and a
natural person,
that is, an individual.
- 03/09/2001
AUTH 1.2.3
See Notes
Exempt persons are persons falling within the following groups:
(1) an appointed
representative;
(2) a person,
or class of persons,
specified in secondary legislation; for example, the Bank of England is specified
in the Financial Services and Markets Act 2000 (Exemption) Order 2001 (the Exemption Order);
(3) a recognised
investment exchange or a recognised
clearing house (for more information on being a recognised body
see REC).
Further information
on exempt persons is
given in
AUTH
2.10
(Persons carrying
on regulated activities who do not need authorisation).- 21/02/2002
AUTH 1.2.4
See Notes
Members of
the Society of Lloyd's are
not required to obtain authorisation to
carry out certain insurance market activities unless so directed by the FSA (see
AUTH
2.10.9 G
). In addition, certain professional firms (solicitors,
accountants and actuaries) are allowed under Part XX of the Act (Provision of Financial Services by Members
of the Professions) to carry on certain regulated
activities without authorisation subject
to their complying with specified conditions (see
AUTH
2.10.12 G
and PROF).
- 03/09/2001
AUTH 1.2.5
See Notes
Before any person carries on in the United Kingdom, by way of business, activities
that are regulated activities,
it will generally need to be an authorised
person (see
AUTH
2.2
). There are two main kinds of authorised person under
the Act: a person who is authorised because it has
a Part IV permission (see AUTH 1.2.5 G (2)) and a person which qualifies
for authorisation (see AUTH 1.2.5 G (1)). It is important
that a person considering
carrying on a regulated
activity in the United
Kingdom determines which type of authorisation is required.
(1) A person from
another EEA State which
is authorised in its Home
State may be entitled to establish a branch in, or provide cross border services into, the United Kingdom under
the Single Market Directives,
the Treaty or
the UCITS Directive (this
is often known as passporting). The process by which that person can qualify for authorisation under Schedules 3, 4 and 5 to
the Act is
described in
AUTH 5
.
(2) Other persons wishing to carry on regulated activities in
the United Kingdom must
obtain permission from
the FSA under
Part IV of the Act (this
is known as Part IV permission).
Such persons will
become authorised persons if
the FSA gives
them permission. AUTH
1.6 outlines the process of applying
for Part IV permission,
the formal elements are described in more detail in AUTH 3. At the same time, the applicant will need to apply for certain persons to become approved persons (see AUTH
6).
- 03/09/2001
AUTH 1.2.6
See Notes
(1)
Electronic
commerce activities, other than insurance business falling within the scope
of the Insurance Directives,
carried on by an incoming
ECA provider are excluded from being regulated activities. The
provider does not require authorisation if
it does not carry on any other regulated
activities in the United
Kingdom (see
AUTH
2.9.18 G
).
(2) An outgoing
ECA provider providing electronic
commerce activities that are regulated activities from an establishment in the United Kingdom is regarded
as carrying on such activities in the United
Kingdom regardless of whether they are provided to an EEA ECA recipient or a UK ECA recipient (see
AUTH 2.4.3 G (5)
). The provider should
be authorised before
it starts providing the services.
- 21/08/2002
AUTH 1.3
The Authorisation manual
- 01/12/2004
AUTH 1.3.1
See Notes
(1) The Authorisation manual (AUTH), the Supervision
manual (SUP),
the Enforcement manual (ENF)
and the Decision making manual (DEC)
form the Regulatory Processes part of the Handbook.
(2)
AUTH sets
out the relationships between the FSA and
applicants for Part IV
permission and persons wishing
to exercise EEA rights, Treaty rights or UCITS Directive rights. SUP sets out the relationship
between the FSA and authorised persons (referred
to in the Handbook as firms). As a general rule,
material that is of continuing relevance after authorisation is in SUP.
(3)
ENF describes
the FSA's enforcement
powers under the Act and
sets out its policies for using these powers.
(4)
DEC is
principally concerned with, and sets out, the FSA's decision making procedures for decisions
that involve the giving of statutory
notices.
- 03/09/2001
AUTH 1.3.2
See Notes
The procedures for applying for Part IV permission, for
approval of a person under
section 59 of the Act and
for qualifying for authorisation under
Schedules 3, 4 and 5 to the Act are
derived from the Act. AUTH gives guidance on the Act and the FSA's procedures. It also
contains directions to applicants on the manner of making applications (see AUTH
3.9.3 D and AUTH
6.3.2 G) and rules on fees (see AUTH 4 (Authorisation fees)).
- 18/10/2001
AUTH 1.3.3
See Notes
(1) A Reader's Guide gives an introduction
to the Handbook and
is a key navigational aid for Handbook users.
The guide explains the format, layout and workings of the Handbook, including the status and definitions
of its components such as directions, rules and guidance (see paragraphs 18 to 31 of the Guide).
(2) We recommend that readers consult this
Guide before or while reading AUTH. In particular,
readers may find it helpful to refer to the sections of the Guide that explain
structure (paragraphs 3 to 13 of the Guide), the status of provisions (paragraphs
14 to 27 of the Guide) and cross-references (paragraphs 40 to 42 of the Guide).
- 03/09/2001
AUTH 1.3.4
See Notes
(1) The Act,
and the secondary legislation made under the Act, is complex. Although AUTH gives guidance to those considering or seeking authorisation, it does
not aim to be exhaustive.
(2) References have been made to relevant
provisions in the Act or
secondary legislation. However, since reproducing an entire statutory provision
would sometimes require a lengthy quotation, or considerable further explanation,
many provisions of the Act,
or secondary legislation made under the Act,
are summarised. For the precise details of the legislation, readers of the
manual should, therefore, refer to the Act and
the secondary legislation itself, as well as the manual.
(3) The Act and
the Explanatory Notes are available from the Stationery Office (the Act, ISBN 0-10-540800-X,
£21.70; and the Explanatory Notes, ISBN 0-10-560800-9, £14.50).
Secondary legislation made by the Treasury under the Act can be obtained from the Stationery Office
or can be accessed through the Treasury's website (www.hm-treasury.gov.uk).
- 03/09/2001
AUTH 1.3.5
See Notes
Guidance on
the Act or
secondary legislation made under the Act represents
the FSA's view
and does not bind the Courts. In the event of any discrepancy between the
manual and the Act or
that secondary legislation, the provisions of the Act or the secondary legislation prevail.
It remains each person's responsibility
to ensure that, at all times, his activities comply with the Act and with other relevant
provisions (including general requirements such as company law or consumer
credit) and to take all necessary steps to satisfy himself of this, including
where necessary by seeking his own legal advice.
- 03/09/2001
AUTH 1.3.6
See Notes
AUTH uses
words and phrases that have specific meanings in the Handbook or in legislation; these may be
different from, or more precise than, their usual dictionary meanings. Defined
terms used in the text of the Handbook are
shown in italics (see
paragraph 43 of the Reader's Guide). For the meanings
of defined terms used in AUTH,
see the Glossary (either
the extracts at the end of AUTH or
the consolidated Glossary near the end
of the Handbook). It is essential
that readers refer to these definitions.
- 03/09/2001
AUTH 1.3.7
See Notes
AUTH
1.3.9 G summarises AUTH. Readers should
note that in a cross-reference, as explained in paragraph 40 of the Reader's Guide, the code letters
of the manual or sourcebook immediately precede the chapter number. For example, AUTH
1 is the first chapter of the
Authorisation manual.
- 03/09/2001
AUTH 1.3.8
See Notes
The FSA is
keen to encourage an interactive authorisation process.
With this in mind, AUTH gives
specific contact points in the FSA from
which an applicant can get help with questions about its application. To help
readers, the contact points are listed at AUTH
1.9.2 G.
- 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. |
- 21/02/2002
AUTH 1.4
The FSA's approach to applications for Part IV permission: an overview
- 01/12/2004
AUTH 1.4.1
See Notes
(1) Under the Act, there is a single process for applications
for Part IV permission.
However, the amount of detailed information that an applicant will have to
submit as part of its application will be related to the risks posed to the FSA's regulatory objectives by the regulated activities and
any unregulated activities that
the applicant intends to carry on. Thus the information requested will depend
on, and be proportional to, the nature of the application.
(2) This proportionality is reflected in
the design of the application pack. Although all applicants have to complete
certain standard sections, other sections of the pack are specific to certain
types of business such as insurance
business. In completing the relevant sections of the pack, the
level of detailed information an applicant will be required to provide varies
according to the nature of the application. Thus, for example, the FSA will require an applicant
which seeks to carry on low-risk designated
investment business activities to submit, among other things,
a business plan and other information which is proportional and relevant to
the applicant's size and the scope of its proposed business.
- 03/09/2001
AUTH 1.4.2
See Notes
(1) To gain, and retain, the status of an authorised person, an applicant
must satisfy and continue to satisfy certain minimum requirements, laid down
in the Act.
These are known as threshold
conditions and further guidance is
given in AUTH 3.8 and COND.
(2) The FSA will
assess each application against the threshold
conditions. During this assessment, the FSA may require further information from
applicants to address any concerns. If an applicant can satisfy the threshold conditions in
part only, the FSA may
impose a limitation or
a requirement on
the Part IV permission applied
for to enable the applicant to satisfy the threshold conditions.
- 03/09/2001
AUTH 1.4.3
See Notes
(1) An applicant for Part IV permission will be expected to demonstrate
to the FSA that
it is ready, willing and organised to comply, and continue to comply, with
the regulatory obligations that are relevant to the regulated activities it seeks Part IV permission to
carry on.
(2) To do this, an applicant will need to
familiarise itself with the relevant Principles,
other rules and guidance that apply to
the regulated activities it
proposes to carry on. AUTH is
designed as a guide, but it cannot alone equip applicants with all the detail
of the regulatory obligations for a proposed business. Such detail is in the
other parts of the Handbook.
- 03/09/2001
The FSA's approach to risk assessment
AUTH 1.4.4
See Notes
(1) Alongside the assessment of the threshold conditions,
described in AUTH 1.4.2 G (2),
the FSA will
operate its risk assessment process. This process enables the FSA to be proportional
in its procedures, both in terms of the information which it seeks from an
applicant and in the allocation of its own resources. The outcome of this
process will help determine the relationship the FSA will seek to have with the applicant
if it gives it Part IV
permission.
(2) The process will include assessing the
risks posed by the applicant against a number of probability and impact factors.
The probability factors relate to the likelihood of an event happening, and
the impact factors indicate the scale and significance of the problem if it
occurred. For further details of the process see SUP 1.3 (The FSA's risk based approach to supervision). The FSA intends to communicate
the outcome of its risk assessment to the firm (see SUP 1.3.10 G).
- 03/09/2001
AUTH 1.5
Understanding the requirements and standards of the regulatory system
- 01/12/2004
AUTH 1.5.1
See Notes
The requirements and standards of the
regulatory system, with which an authorised
person must comply, vary depending on both the nature of the firm and the regulated activities it
has permission to
carry on. As part of preparing an application for Part IV permission, an applicant will need
to familiarise itself with the rules,
regulations and standards that would apply to the business it proposes to
carry on. An applicant will then have to demonstrate how it proposes to comply,
for example, with the high level systems and controls requirements in SYSC and, where relevant,
the applicable rules in COB. EEA firms, Treaty firms or UCITS qualifiers which
qualify for authorisation should
also familiarise themselves with the relevant regulatory obligations before
carrying on regulated activities in
the United Kingdom.
- 03/09/2001
AUTH 1.5.2
See Notes
(1) An EEA
firm will be informed of any relevant regulatory obligations
(known as applicable provisions)
by the FSA or,
in the case of an EEA firm which
is an insurer,
its Home State regulator,
as part of the process of qualifying for authorisation.
(2) An applicant for Part IV permission should consult the notes
to the application pack. They cross-refer to relevant parts of the Handbook, and this will
help applicants to respond to certain questions.
- 03/09/2001
AUTH 1.5.3
See Notes
As a general guide, all applicants for Part IV permission should
be familiar with the threshold
conditions (COND)
and the Principles for Businesses (PRIN)
in the High Level Standards part of the Handbook.
To complete an application for Part
IV permission, an applicant will also need to have regard to
the following matters:
(1) Prudential requirements:
(a) the high level requirement for adequate
resources, which is applicable to all firms,
described in COND;
and
(b) the detailed prudential requirements
in the Interim Prudential Sourcebooks (collectively referred to as IPRU) and in the Integrated Prudential Sourcebook
(PRU) in the Business Standards
part of the Handbook.
In addition
to PRUThere are five interim sourcebooks that apply,
respectively, to banks (IPRU(BANK)), building societies (IPRU(BSOC)), friendly societies (IPRU(FSOC)), insurance
companies (IPRU(INS))
and investment business firms (IPRU(INV)). Guidance is given to applicants in AUTH
3 Annex 2 on determining which prudential category,
and which sourcebook of IPRU, or section of PRU will apply.
An applicant
will need to confirm that it will have adequate resources in place to meet
the applicable requirements.(2) Systems, controls and internal arrangements:
(a) the high level requirement for all firms to maintain adequate
resources (including systems and human resources) described in COND and the high level
standards for all firms in
Senior management arrangements, systems and controls (SYSC); and
(b) the detailed requirements, many of which
are regulated activity specific,
in the sourcebooks in the Business Standards part of the Handbook; for example, in IPRU,
PRU, the Training and Competence
sourcebook (TC), the Money
Laundering sourcebook (ML) and Conduct of Business
sourcebook (COB);
and the reporting requirements for firms in SUP
16 (Reporting requirements) and SUP 17 (Transaction reporting).
Before the FSA gives a Part IV permission, an
applicant will need to confirm that it will have the necessary systems and
controls in place. (3)
Approved
persons:
(a) the high level standards contained in
the Fit and Proper test for approved persons (FIT) and the Statements of Principle and
Code of Practice for Approved Persons (APER);
and
An applicant
will need to identify the persons that
will require approval from the FSA in
conjunction with its application for permission.
This approval is required before a person may
perform a controlled function.(4) Other regulatory obligations:
(a) the detailed regulatory obligations that
apply to certain types of firm or regulated activity in COB,
ICOB,
MCOB, CASS,
the Market Conduct sourcebook (MAR)
and SUP;
(c) the specialist sourcebooks included in
the Handbook such
as, for example, those for collective
investment schemes, exempt professional
firms and the market at Lloyd's.
- 31/10/2004
AUTH 1.5.4
See Notes
A table of contents of the Handbook is at the end
of the Reader's Guide.
- 03/09/2001
AUTH 1.6
Applying for Part IV permission: overview of the process
- 01/12/2004
AUTH 1.6.1
See Notes
The formal procedures for applying for Part IV permission are
described in AUTH 3. The application process
is, however, interactive and includes discussions and, in some circumstances,
an initial meeting with a potential applicant before it submits a completed
application form. This section, therefore, outlines how the application process
is likely to proceed in practice.
- 03/09/2001
AUTH 1.6.2
See Notes
(1) Although the FSA does not require all applicants to appoint
professional advisers to help with the application process, reports from professionals
will be required in respect of some applications for Part IV permission (see AUTH 3.9.16 G and AUTH 3.9.17 G).
(2) In addition, a potential applicant should
consider at an early stage whether, given the nature of the proposed business
it is seeking to carry on and its own experience, it is appropriate to seek
professional advice in connection with its application. For example, an applicant
may need to seek professional advice from lawyers, auditors or reporting accountants,
consultants, actuaries or
its professional body, before making a formal
application to the FSA.
(3)
SUP 9 (Individual
guidance) describes how a person may
apply to the FSA for
individual guidance which
relates to its own particular circumstances or plans. Applicants should note,
in particular, SUP 9.2.5 G, which states
that the FSA will
expect a person to
have taken reasonable steps to research and analyse a topic before approaching
the FSA for
individual guidance. SUP
9.2.5 G also cautions that the FSA should not be viewed as a first port
of call, except where only the FSA can
give guidance.
- 03/09/2001
AUTH 1.6.3
See Notes
Before beginning discussions with the FSA, an applicant for Part IV permission should
have completed its business planning to determine what activities it proposes
to undertake and the resources it will need to do so.
- 03/09/2001
AUTH 1.6.4
See Notes
(1) An applicant should also have determined
and established the appropriate legal entity through which the proposed activities
are to be conducted - that is, whether it wishes to trade on its own account,
or establish:
(a) a body
corporate - for example, a limited company, which can be public or private and
limited by shares or by guarantee, or a friendly
society; or
(b) a partnership;
or
(c) an unincorporated association; or
(2) A limited
liability partnership (regardless of the jurisdiction of incorporation)
is a body corporate and
does not fall within the definition of partnership,
except in relation to SUP 10 (Approved
persons). Most limited liability partners will be either directors or senior managers, but this will depend on
the constitution of the limited
liability partnership.
- 03/09/2001
AUTH 1.6.5
See Notes
The legal status of an insurer and an applicant which seeks to carry
on the regulated activity of accepting deposits is specified
by threshold condition 1
(Legal status) (see COND
2.1).
- 03/09/2001
AUTH 1.6.6
See Notes
The first stage in the application process
is to establish whether the proposed business will carry on regulated activities requiring permission under Part
IV of the Act (Permission
to carry on regulated activities).
AUTH
2
gives a high-level guide to the activities
that are regulated under the Act and
those that are excluded (but this is not a substitute for consulting the legislation
itself); further queries may be referred to the FSA's Authorisation Enquiries team (see AUTH
1.9.2 G).
- 03/09/2001
AUTH 1.6.7
See Notes
Once an applicant has determined that
it needs to apply for Part
IV permission, it should begin to gather the information needed
for the formal application. At this stage, applicants are encouraged to begin
discussion with the FSA's Enquiries
and Applications Department (Applications team) about their plans and the
application (see AUTH
1.9).
- 01/07/2003
AUTH 1.6.8
See Notes
The FSA's application
pack (that is, the set of forms for an application for Part IV permission, and the notes for their
completion) and approved
persons forms are available from the FSA website or by contacting the Enquiries
and Applications Department (Applications team) (see AUTH
1.9.2 G).
- 01/07/2003
AUTH 1.6.9
See Notes
Among other things, the applicant will
need to:
(1) determine the precise scope of the permission it wishes to
apply for; this should include the regulated
activities (the specified activities and the specified investments in respect of which
the activities are carried on: see
AUTH 2 Annex 2 G
) and any limitations and requirements the applicant
wishes to apply for to refine the scope of the regulated activities; an example includes
a limitation on
the types of client it
wishes to carry on business with or a requirement not
to hold or control client money;
(2) determine whether it needs to apply to
the Society of Lloyd's for
admission to the register of underwriting
agents or to any other bodies; the timing of these applications
should be included in the applicant's plans;
(3) determine which prudential category (and,
if relevant, sub-category) will apply, and therefore its minimum regulatory
financial requirements;
(4) determine the rules in the Handbook which will apply
to the activities it proposes to carry on, and take all reasonable steps to
ensure that it is ready, willing and organised to comply with those rules;
(5) determine the systems and controls necessary
both to support its activities and to comply with the relevant rules, and have plans
to implement and test these systems before the FSA determines its application;
(6) prepare a business plan setting out the
planned activities (and related risks), budget and resources (human, systems
and capital);
(7) determine which persons will fall under the FSA's approved persons regime and apply for the
necessary approval; and
(8) obtain any auditors' or reporting accountants' reports
that are required to support its application or have been requested by the FSA; the auditors or other
professionals should be involved early in the process to ensure that the planned
work on the application will be sufficient to enable them to provide any opinions
required.
- 03/09/2001
AUTH 1.6.10
See Notes
(1) It is in the interests of the applicant
and the FSA that
the application pack, when submitted, should be fully completed and address
any areas of potential regulatory concern.
(2) If an applicant's plans are complex (for
example, if they include insurance
business, accepting
deposits or certain types of designated investment business), high risk
or innovative (for example, if they raise new or unusual issues), then the FSA would expect to be
in discussion with the applicant while the applicant is developing the material
needed for the formal application.
(3) Where appropriate - for example in an
application for Part IV
permission including insurance
business or accepting
deposits - FSA staff
may, by agreement with the applicant, arrange a pre-application meeting or
discuss aspects of the applicant's draft business plan or other relevant documents
while the application is being prepared. This will help the FSA develop its knowledge of the applicant
and the proposed business.
- 03/09/2001
AUTH 1.6.11
See Notes
In addition, all applicants are encouraged
to take the opportunity to discuss particular issues with the FSA as they arise, with
a view to tackling them before submitting the completed application pack.
Applicants are also advised to review the application pack before submission
and check that they have provided adequate responses to all questions (that
is, responses appropriate to the scope and scale of their activities and the
risks they may pose to consumers).
- 03/09/2001
AUTH 1.6.12
See Notes
After receiving the application pack,
the FSA will
begin its formal process of consideration. The FSA Applications and Individual Approvals
teams will review the application pack and approved persons regime forms respectively.
During this process, the FSA may
ask for additional information and is likely to meet the applicant's management
and visit its premises before determining the application.
- 01/07/2003
AUTH 1.7
Appointed representatives
- 01/12/2004
AUTH 1.7.1
See Notes
An applicant for Part IV permission, an EEA firm or Treaty firm which is seeking to carry on designated investment business may
wish to consider appointing an appointed
representative if they become authorised.
- 03/09/2001
AUTH 1.7.2
See Notes
(1) An appointed
representative is a person who,
as a result of satisfying conditions in section 39 of the Act (Exemption of appointed representatives)
is an exempt person in
respect of certain business which it carries on for an authorised person. The Act states that a person who is an authorised person cannot
also be an appointed representative.
(2) The business for which an appointed representative may
be exempt is specified in the Appointed
Representatives Regulations. The business which an appointed representative carries
on for a firm must
fall within the scope of the firm's own permission.
(3)
SUP 12 (Appointed
representatives) contains guidance on
the conditions in the Act,
the Appointed Representatives
Regulations and the FSA's rules and guidance which apply to
a firm which
is appointed or has appointed an appointed
representative. An applicant for Part IV permission can notify the FSA of the persons it wishes to appoint
as appointed representatives in
the application pack.
- 18/10/2001
AUTH 1.8
What other general guidance is available from the FSA?
- 01/12/2004
AUTH 1.8.1
See Notes
It will not always be clear to a person whether or not
its prospective business activities will be such that it requires authorisation. The FSA has established an
Authorisation Enquiries team to help in such cases.
- 03/09/2001
AUTH 1.8.2
See Notes
The Authorisation Enquiries team gives
assistance by:
(1) producing guidance for persons who wish to find out whether they
need to be authorised (see
AUTH
2
);
(2) publishing guidance about areas where persons may have difficulty
deciding whether or not authorisation or
exemption is needed (this is included in AUTH App
X [to be added at later date]); and
(3) responding to oral and written enquiries
from applicants, prospective applicants, EEA
firms, Treaty
firms or prospective UCITS
qualifiers (or their professional advisers) about their particular
position under the Act.
- 03/09/2001
AUTH 1.8.3
See Notes
The Authorisation Enquiries team also
handles enquiries about financial
promotions. Under the Act,
the communication of a financial
promotion by an unauthorised
person is prohibited, unless its contents have been approved
by an authorised person,
or an exemption applies.
- 03/09/2001
AUTH 1.8.4
See Notes
As well as being included as an appendix
to AUTH, copies
of all current guidance issued
by Authorisation Enquiries are available separately from the FSA website at www.fsa.gov.uk or through the FSA's Publications
Enquiries department on 020 7066 3298. The Authorisation Enquiries team will
be pleased to clarify or discuss any aspects of the guidance in more detail. Enquiries about
the scope of the Act may
be made to the Authorisation Enquiries helpline by telephone on 020 7066 0082
or by e-mail to authorisationenquiries@fsa.gov.uk.
- 01/10/2002
AUTH 1.8.5
See Notes
- 03/09/2001
AUTH 1.9
Next steps?
- 01/12/2004
AUTH 1.9.1
See Notes
To find out where next to look in the
Authorisation manual, see AUTH
1 Annex 1 G.
To find out who to contact at the FSA see AUTH
1.9.2 G.
- 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
- 15/11/2001