• Part 5 Part 5 Performance of Controlled Functions and Recognised Functions

    • Approval

      • 43. Approval to perform Controlled Functions and Recognised Functions

        (1) An Authorised Person ("A") must take reasonable care to ensure that no person performs a Controlled Function in the business of A that is specified in the Rules as a Controlled Function requiring the Regulator's approval, unless that person is an Approved Person acting in accordance with an Approval given by the Regulator under this Part in relation to that function.
        (2) A person ("P") must not perform a Controlled Function in the business of an Authorised Person that is specified in the Rules as a Controlled Function requiring the Regulator's approval, unless P is an Approved Person acting in accordance with an Approval given by the Regulator under this Part in relation to that function.
        (3) An Authorised Person ("A") must take reasonable care to ensure that no person performs a Recognised Function in the business of A that is specified in the Rules as a Recognised Function requiring A's approval, unless that person has been appointed as a Recognised Person by A in relation to that function.
        (4) A person ("P") must not perform a Recognised Function in the business of an Authorised Person that is specified in the Rules as a Recognised Function requiring A's approval, unless P has been appointed as a Recognised Person in relation to that function.

      • 44. Applications for Approval

        (1) An Application for Approval to perform a Controlled Function in the business of an Authorised Person may be made by the Authorised Person.
        (2) Such Application may be made by a person who has applied for a Financial Services Permission and will become an Authorised Person if a Financial Services Permission is granted.
        (3) The Application must —
        (a) comply with any applicable Rules made by the Regulator;
        (b) contain, or be accompanied by, such other information as the Regulator may reasonably require; and
        (c) be made in such manner as the Regulator may direct.
        (4) At any time after the Application is received and before it is determined, the Regulator may require the Applicant to provide it with such further information as it reasonably considers necessary to enable it to determine the Application.
        (5) Different directions may be given, and different requirements imposed by the Regulator, in relation to different Applications or categories of Application.
        (6) If the Regulator decides to grant an Application made under this section, it must give written notice of its decision to each of the Interested Parties.
        (7) The Regulator may require an Applicant to provide information which the Applicant is required to provide to it under this section in such form, or to verify it in such a way, as the Regulator may direct.

      • 45. Determination of Application to carry out Controlled Functions

        (1) The Regulator may grant the Application only if it is satisfied that the person in respect of whom the Application is made is a fit and proper person to perform the Controlled Function to which the Application relates.
        (2) The Regulator may in particular —
        (a) grant the Application subject to any conditions that the Regulator considers appropriate; and
        (b) grant the Application so as to give Approval only for a limited period;
        if it appears to the Regulator that it is desirable to do so in order to further one or more of its objectives.
        (3) A person who makes an Application under section 44 may withdraw his Application by giving written notice to the Regulator at any time before the Regulator determines it.

      • 46. Withdrawal of Controlled Function Approval

        The Regulator may withdraw an Approval given under section 45 if the Regulator considers that the person is not a fit and proper person to perform the Controlled Function in question.

      • 47. Variation of Approval at request of relevant Authorised Person

        (1) Where an Application for Approval under section 44 is granted subject to conditions, the Authorised Person concerned may apply to the Regulator to vary the Approval by —
        (a) varying a condition;
        (b) removing a condition; or
        (c) imposing a new condition.
        (2) The Regulator may refuse an Application under this section if it appears to the Regulator that it is desirable to do so in order to further one or more of its objectives.
        (3) Section 44(3) to (6) apply to an Application made under this section for variation of an Approval as they apply to an Application for Approval made under section 44.

      • 48. Variation of Approval on initiative of Regulator

        (1) The Regulator may vary an Approval given under section 45 if the Regulator considers that it is desirable to do so in order to further one or more of its objectives.
        (2) The Regulator may vary an Approval by —
        (a) imposing a condition;
        (b) varying a condition;
        (c) removing a condition; or
        (d) limiting the period for which the Approval is to have effect.
        (3) A condition may, in particular, be imposed so as to require any person to take, or refrain from taking, specified action.

      • 49. Exercise of power under section 48: procedure

        (1) This section applies to an exercise by the Regulator of the power to vary an Approval under section 48.
        (2) A variation takes effect —
        (a) immediately, if the notice given states that that is the case;
        (b) on such date as is specified in the notice; or
        (c) if no date is specified in the notice, when the matter to which the notice relates is no longer open to review.
        (3) A variation may be expressed to take effect immediately (or on a specified date) only if the Regulator reasonably considers that it is necessary for the variation to take effect immediately (or on that date).
        (4) If the Regulator proposes to vary an Approval or varies an Approval with immediate effect, it must give each of the Interested Parties written notice.
        (5) The notice must —
        (a) give details of the variation;
        (b) state the Regulator's reasons for the variation;
        (c) inform the Interested Parties that each of them may make representations to the Regulator within such period as may be specified in the notice (whether or not any of the Interested Parties has referred the matter to the Regulatory Committee);
        (d) inform the Interested Parties of when the variation takes effect; and
        (e) inform the Interested Parties of the right of each of them to refer the matter to the Regulatory Committee.
        (6) The Regulator may extend the period allowed under the notice for making representations.
        (7) If having considered the representations made by the Interested Parties, the Regulator decides to vary the Approval, or if the variation has taken effect, not to rescind it, it must give each of the Interested Parties written notice.
        (8) If having considered the representations made by the Interested Parties, the Regulator decides —
        (a) not to vary the Approval;
        (b) to vary the Approval in a different way; or
        (c) if the variation has taken effect, to rescind it;
        it must give each of the Interested Parties written notice.
        (9) A notice under subsection (7) must inform the Interested Parties of the right of each of them to refer the matter to the Regulatory Committee.
        (10) A notice under subsection (8)(b) must comply with subsection (5).
        (11) For the purposes of subsection (2)(c), whether a matter is open to review is to be determined in accordance with section 252(7).