Source: https://www.handbook.fca.org.uk/handbook/SUP/13A/Annex1.html?date=2019-01-03
Timestamp: 2019-08-17 22:39:00
Document Index: 797193421

Matched Legal Cases: ['art 1', 'art 2', 'art 2', 'art 4', 'art 4', 'art 4', 'art 13']

SUP 13A Annex 1 Application of the Handbook to Incoming EEA Firms - FCA Handbook
SUP 13A Annex 1 Application of the Handbook to Inc...
G 10/12/2018
254. An EEA firm that exercises an EEA right under the auction regulation to establish a branch in the United Kingdom to provide auction regulation bidding is subject to a limited set of requirements in the Handbook that apply to that activity. These are the rules listed in paragraph 2.6A of SYSC 1 Annex 1, GEN 4 and SUP (in particular, the money laundering reporting function in SUP 10A50 and requirements to notify the FCA).50 Aside from this note, the table does not apply to those firms.
255. An EEA firm that exercises an EEA right under MiFID to carry on MiFID business bidding is subject to the applicable provisions relating to its carrying on of MiFID business and any applicable EU regulations44.
For an incoming EEA firm which is a CRDcredit institution27 without a top-up permission, Principle 4 does not apply49.
SYSC 1 and SYSC 1 Annex 1 (Application of SYSC 2 and SYSC 3) contain 13application provisions only. SYSC 2 and SYSC 3 apply only to an insurer, a managing agent and the Society13as set out in SYSC 1 Annex 1.1.1R , which include the following exceptions:13
(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 SYSC 2.1.3AR(2)34and only in so far as responsibility for the matter in question is not reserved by an EU17 instrument to the firm'sHome State regulator; and
(3) SYSC 3 applies, but only in so far as responsibility for the matter in question is not reserved by an EU17 instrument to the firm'sHome State regulator. SYSC 1 Annex 1, Part 1, 1.8 R50(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 18410applies to the extent that the Public Interest Disclosure Act 1998 applies to the firm.
The common platform requirements in SYSC 4 - 10 apply as set out in Part 2 of SYSC 1 Annex 1 (Application of the common platform requirement).13
SYSC 1 Annex 1 row 2.6F provides that the common platform requirements do not apply to an incoming EEA AIFM branch, except the AIFMD Host State requirements and certain requirements regarding financial crime.28
SYSC 1 Annex 1.2.7G reminds 13EEA MiFID investment firms that they 13must comply with the common platform record-keeping requirements in relation to a branch in the United Kingdom.
SYSC 1 Annex 1 , Part 2, 2.7AG provides guidance on the application of the common platform requirements to the UKbranch of an EEA UCITS management company.22
SYSC 9 applies to activities carried on from an establishment in the United Kingdom, unless another applicable rule which is relevant to the activity has a wider territorial scope, in which case the common platform record-keeping requirements apply with that wider scope in relation to the activity described in that rule (SYSC 1 Annex 1.2.17R).13
SYSC 10A applies to an incoming EEA AIFM and an EEA MiFID investment firm.44
SYSC 12 does not apply (SYSC 12.1.3 R).
SYSC 13 does not apply (SYSC 13.1.1 G).
SYSC 14 does not apply (SYSC 14.1.1 R).
SYSC 15 does not apply (SYSC 15.1.1 G).
SYSC 16 does not apply (SYSC 16.1.1 G).
SYSC 17 does not apply (SYSC 17.1.1 G).
SYSC 18 applies.10
SYSC 19A 20, 3319B , 19C and 19D33do not apply.16
SYSC 19F applies to a MiFID investment firm unless it is a UCITS investment firm or an AIFM investment firm. 44
SYSC 19F.2 applies to insurance distribution activities carried on from an establishment in the United Kingdom.46
SYSC 28 does not apply.46
SYSC 23 to 27 apply with the modifications described in those chapters.47
13 17 17 50 13 13 13 18 20 28 20
SYSC 2 and13SYSC 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 Annex 1.1.1 R). 13SYSC 2 and13SYSC 3 have limited application for activities which are not carried on from a UK establishment (see SYSC 1 Annex 1.1.1 R (2A)).13
SYSC 10A 44 - SYSC 17 do not apply.
SYSC 18 applies.
SYSC 19A 20, 19B44, 19C, 19D, 19E and 19F44 do not apply.33
SYSC 23 to 27 do not apply.47
13 13 13 13 13 13 20 16
36 COCON
COCON applies to employees of firms which are SMCR firms47. See COCON 1.1 for detailed rules on the application of COCON.
Otherwise, the threshold conditions apply in a limited way50
(1)in the case of50 a top-up permission under Part 4A50 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 FCA's powers under sections 55J and 55L of the Act in relation to the top-up permission. (COND 1.2.4 G)50
APER applies to approved persons of firms other than SMCR firms47. See below under SUP 10A47 as to whether controlled functions are performed, and approval therefore required.
GEN applies (GEN 1.1, GEN 1.2,44GEN 2.1, 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 (GEN 4.1.1 R (3)), and (b) GEN 6 only applies to business that can be regulated under sections 137A and 137G of the Act (The FCA's General rules) and (The PRA's General rules), respectively.50 It does not therefore apply if, or to the extent that, responsibility has been reserved to an incoming firm'sHome State regulator by an EU17 instrument. Only GEN 4.544 applies14 in relation to MiFID or equivalent third country business (see GEN 4.1.1 R).10 The FCA has supervisory responsibility in respect of a branch of a MiFID investment firm under article 44(8) of the MiFID Org Regulation relating to the prohibition on using the name of a competent authority to suggest its endorsement of the firm’s products or services.44
50 50 17 14
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 (see GEN 4.1.1 R).12
Otherwise, as column (2) except in relation to article 44(8) of the MiFID Org Regulation44.
Applies to the extent a firm is required to pay a fee in regards to carrying out any regulated activity in the UK. FEES 3.2.7R applies in relation to incoming data reporting services providers.44
Does not apply in relation to regulated activity in the UK FEES 3.2.7R applies in relation to incoming data reporting services providers44
5 GENPRU
5 BIPRU
IFPRU 27
MIPRU 1 (Application and general provisions) does not apply unless the firm has a top-up permission.5
MIPRU 2 5 (Responsibility for insurance distribution and MCD credit intermediation46) does not apply unless the firm has a top-up permission.
MIPRU 3 (Requirement to hold professional indemnity insurance)5 does not apply unless the firm has a top-up permission.
MIPRU 4 (Requirement to hold capital resources)5 does not apply unless the firm has a top-up permission.
MIPRU 5 5 (Insurance distributors and home finance providers using insurance distribution or home finance46 mediation services) does not apply unless the firm has a top-up permission.
5 INSPRU
Does not apply because an incoming EEA firm cannot be a friendly society (IPRU(FSOC) 1.1).50
11 ICOBS
ICOBS 8.4 and parts of ICOBS 8.2 apply31 except to the extent necessary to be compatible with European law. Other chapters of21ICOBS do21 not apply, except to the extent necessary to be compatible with European law. Guidance on the territorial application of ICOBS is contained in ICOBS 1 Annex 1 Part 4.21
CASS does not apply with respect to the firm'spassported activities unless the firm is an insurer (CASS 1.2.3 R (2)).
MAR 5 (Multilateral Trading Facilities) 6
50 MAR 8 (Benchmarks)
MAR 10 (Commodity derivative position limits and controls, and position reporting) 44
Position limits apply in relation to position limits set by the FCA in accordance with MAR 10.2.2D. Position reporting applies to a member, participant or a client of a UK trading venue in accordance with MAR 10.4.10D.44
As column (1)44
TC Appendix 1 sets out the activities to which TC applies.7
TC Appendix 2 sets out the sourcebook's territorial scope.7
TC Appendix 3 sets out the limitations on TC App 2.7
SUP 1A (The FCA's approach to supervision) 50
SUP 2 (Information gathering by the FCA or PRA 43 on its own initiative) 50
SUP 2 (Information gathering by the FCA or PRA 43 on its own initiative). 50
Applies only if the firm is required by the FCA or PRA50 to provide a report under section 166 of the Act (Reports by skilled persons).
SUP 6 (Applications to vary and cancel Part 4A permission) 50
Applies only if the firm has a top-up permission. It contains only guidance on the exercise of the FCA's powers under sections 55J and 55L of the Act. The FCA has similar, but more limited, powers of intervention under Part 13 of the Act in relation to the permission of the firm under Schedule 3 to the Act (see EG 8).50
Applies only if the firm wishes to apply for, or consent to, or has been given, a waiver of the appropriate regulator's50 rules (SUP 8.1.1 R).
Applies only if the firm wishes to obtain individual guidance from the FCA or if the FCA50 gives the firm individual guidance on its own initiative (SUP 9.1.1 G).
SUP 10A (Approved persons) 50
Applies to an EEA firm that is not an SMCR firm,47 but the applicable controlled functions are limited. See SUP 10A.150 (Application) for more detailed guidance. 47
Does not apply (SUP 10A.1.6 R).50
50 SUP 10B (Approved Persons)
SUP 10C (FCA senior managers regime for approved persons in SMCR firms) 47
Applies to EEA SMCR firms, but the applicable controlled functions are limited. See SUP 10C.1 (Application) and SUP 10C Annex 1 (What functions apply to what type of firm) for more details of what functions apply.47
Does not apply.47
Applies only if the firm has permission to carry on designated investment business, insurance distribution activity46 or mortgage mediation activity and wishes to appoint, or has appointed, an appointed representative (SUP 12.1.1 R (1)).
SUP 13A applies to the firm if it:
(2) is, or is considering, applying to the appropriate regulator50 to carry on regulated activities in the United Kingdom under a top-up permission; or
SUP 15 (Notifications to the FCA or PRA) 50
(f) a firm with permission to establish, operate or wind up a personal pension scheme or a stakeholder pension scheme;2 or
(g) a firm with permission to carry on MiFID business,44advise on investments, arrange (bring about) deals in investments, make arrangements with a view to transactions in investments, or arrange safeguarding and administration of assets.
(e) a firm with permission to establish, operate or wind up a personal pension scheme or a stakeholder pension scheme;2 or
A MiFID investment firm (other than a collective portfolio management investment firm) reports transactions executed wholly or partly through its branch to the competent authority of its Home State unless otherwise agreed by that competent authority and the FCA, in which case it will report to the FCA.44
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.
As column (2).50
44 PROD
Applies in respect of the rules which implement article 24(2) MiFID and articles 9 and 10 of the MiFID Delegated Directive in relation to the activities of a branch within the territory of the UK.
DEPP applies and contains a description of the FCA's50 procedures for taking statutory notice decisions, the FCA's50 policy on the imposition and amount of penalties and the conduct of interviews to which a direction under section 169(7) of the Act50 has been given or the FCA50 is considering giving.8
DEPP applies and contains a description of the FCA's50 procedures for taking statutory notice decisions, the FCA's50 policy on the imposition and amount of penalties and the conduct of interviews to which a direction under section 169(7) of the Act50has been given or the FCA50 is considering giving.8
Generally applies28 (DISP 1.1.1 G) 44.
In relation to MiFID business carried on from the branch of an EEA firm, the provisions in DISP relating to MiFID complaints generally apply (subject to some limitations, see DISP 1.1A.7R), as do the directly applicable provisions of the MiFID Org Regulation relating to complaints handling.44
Applies, except in relation to the passported activities of a MiFID investment firm, an IDD insurance intermediary46, a UCITS management companycarrying on non-core services under article 6.3 of the UCITS Directive, an MCD mortgage credit intermediary41 and an incoming AIFM45 carrying on either AIFM management functions for an unauthorised AIF or non-core services under article 6.4 of AIFMD28 (see the definition of "participant firm"). However, a firm specified above28 may be able to apply for top-up cover in relation to its passported activities (see COMP 14 (Participation by EEA Firms)).50
10 10 50 27 27 27 27 28 28 45 28 28
Does not apply in relation to the passported activities of a4510MiFID investment firm,45 an IDD insurance intermediary46, an MCD mortgage credit intermediary41 or a UCITS management company50carrying on non-core services under article 6.3 of the UCITS Directive or an incoming EEA AIFM regarding AIFM management functions carried on for an unauthorised AIF or non-core services under article 6.4.28 Applies in relation to the passported activities of a UCITS management company in relation to the management of a UCITS scheme and of an AIFM in relation to the management of an authorised AIF.45 Otherwise, COMP may apply, but the coverage of the compensation scheme is limited for non-UK activities (see COMP 5). 50
10 50 28 27 27 28
(c) COLL 6.6A.5 R (Compliance with the regulatory requirements applicable to the conduct of business activities of a UCITS management company);
(d) COLL 12.3.4 R (Provision of documentation to the FSA: EEA UCITS management companies);
(e) the fund application rules (see COLL 12.3.5 R (COLL fund rules under the management company passport: the fund application rules);
(f) COLL 12.3.6 R (Requirement to make information available to the public or the FSA);
(g) COLL 12.3.7 G (EEA UCITS management companies: compliance with FSA rules); and
(b) wishes to apply for an authorisation order to establish an AUT, ACS26 or ICVCas a UCITS scheme;22 or
(ba) is the management company of a UCITS scheme that wishes to exercise an EEA right to market its units in another EEA State; or22
FUND 3.8 (Prime brokerage firms) applies to an incoming EEA AIFM branch.
FUND 10 (Operating on a cross-border basis), provides guidance for an incoming EEA AIFM branch.
CREDS 24
Does not apply.50
29 CONC
LR (Listing Rules)
May apply if the firm is applying for listing in the United Kingdom, is a listedissuer in the United Kingdom, is a sponsor or is applying for approval as a sponsor.
May apply if the firm makes an offer of transferable securities to the public in the United Kingdom or is seeking the admission to trading of transferable securities on a regulated market situated or operating in the United Kingdom.
50 CONRED
50 Notes to Annex 1
PRA-authorised persons should also refer to the relevant parts of the PRA Rulebook.44
Note 2: The effect of article 35(1) and 35(8) of MiFID (when read with article 1(3) of MiFID) is that if an EEA MiFID investment firm establishes a branch in the UK exercising an EEA right under MiFID or CRD, the FCA has supervisory responsibility for the services and activities provided or performed by the branch within the UK in relation to the rules implementing articles 24, 25, 27 and 28 of MiFID44.