What is an FCA close link?

Our close links requirements form part of our work to ensure that firms are not used for financial crime and that the stability of the financial system is preserved. A ‘close link’ is 2 or more ‘natural or legal persons’ linked by participation or control.

What is an FCA SUP 15 notification?

SUP 15.11 (Notification of COCON breaches and disciplinary action) provides rules and guidance on notifications to the FCA by an SMCR firm where the SMCR firm takes disciplinary action in relation to any conduct rules staff and the reason for taking that action is a reason specified in rules made by the FCA.

What is a principle 11 notification?

Principle 11 requires a firm to deal with its regulators in an open and cooperative way and to disclose to the FCA appropriately anything relating to the firm of which the FCA would reasonably expect notice.

Who is responsible for notifying the FCA?

A firm should provide a written notification if a matter either is complex or may be such as to make it necessary for the FCA to take action. A firm should also have regard to Principle 11 and the guidance in ■ SUP 15.7. 2 G in respect of providing important information promptly.

What does close link mean?

close link means a situation in which two or more natural or legal persons are linked by control or participation. A close link between at least two natural or legal persons also means a situation in which the persons concerned are permanently linked to one and the same person by a control relationship; Sample 1.

What is a controller for FCA purposes?

A ‘controller’ includes any person who holds a certain level of influence over a UK authorised firm, whether directly or indirectly, through ownership rights, such as shareholdings, voting rights or partnership interests.

What is FCA sup?

The FCA’s Supervision Manual (SUP) addresses the day to day relationship between the FCA, authorized persons (firms), key individuals within them, their appointed representatives and tied agents, and those who own or control them.

What is FCA Sysc?

The FCA’s Senior Management Arrangements, Systems and Controls Sourcebook (SYSC) was created to encourage firms to vest responsibility for effective and responsible organizations and to create a common platform for organizational and system controls requirements for all firms.

What is Principle 6 of the FCA?

6. Customers’ interests. A firm must pay due regard to the interests of its customers and treat them fairly.

What is Principle 6 prin of the FCA rule book?

6 Customers’ A firm must pay due regard to the interests of its cus- interests tomers and treat them fairly.

What are regulatory notifications?

Regulator Notifications is the Web CRD® function that provides entitled regulators with the capability to request automatic e-mail reminders when certain events occur within individual and/or firm CRD records.

How soon must a breach be reported to the FCA?

Immediately when it becomes aware or has information which reasonably suggests that a notifiable event has occurred. A firm must notify the FCA of a significant breach of a rule (which includes a COCON rule) in relation to any of its directors, officers, employees or approved persons.

What is a controller FCA?

How long does FCA change of control take?

60 working days
We have up to 60 working days (excluding any interruption period) to assess a change in control case.

Do the FCA need to be notified of all shareholders?

They require shareholders and holders of financial instruments falling within DTR 5.3. 1R(1) to notify the issuer and the FCA when their holding reaches, exceeds or falls below a given threshold.

What are the FCA conduct rules?

Rule 1: You must act with integrity. Rule 2: You must act with due skill, care and diligence. Rule 3: You must be open and cooperative with the FCA, the PRA and other regulators. Rule 4: You must pay due regard to the interests of customers and treat them fairly.

When should a breach be reported to the FCA?

Under section 64C of the Act, a firm must notify the FCA if it takes disciplinary action against certain people working for an SMCR firm and the reason for this action is a reason specified in rules made by the FCA (those rules are set out in SUP 15.11.

What does Sysc mean?

Senior Management Arrangements, Systems and Controls
Senior Management Arrangements, Systems and Controls (SYSC)

What is the purpose of Sysc?

SYSC is designed to ensure that responsibility for proper organisation of the business is given to specific, competent individuals, and to ensure that directors and senior managers take direct, practical responsibility for the organisation of elements of the business that might fall under the remit of the FCA.

What is the FCA Principle 7?

7 Communications with clients. A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.

Where can I find the close links notification form approved by FCA?

The Close Links Notification Form approved by the FCA for notifications under SUP 11.9.1AR (1) (b) may be found at the FCA website. SUP 11.9.3BA R 01/03/2014 RP The notification under SUP 11.9.1AR (1) (a) must be made electronically by completing the Close Links Monthly Report and submitting it through the relevant platform provided by the FCA.

What should be included in the notification of close links?

The notification in SUP 11.9.1AR (1) (b) and SUP 11.9.1BR (1) (b) should contain a list of all persons with whom the firm is aware that it has close links, at the time the notification is made, and, for each such person, state: if the close links are with an individual, their date and place of birth.

How does a firm elect to report changes in close links?

A firm elects to report changes in close links on a monthly basis by sending a written notice of election to the firm’s usual supervisory contact at the FCA.