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Application provision

1.1 Unless otherwise stated, this Part applies to every firm that is:

  1. (1) a CRR firm;
  2. (2) a credit union; or
  3. (3) a third country CRR firm in relation to the activities of its establishment in the UK.

2.1

07/03/2016

Each of the functions in 3 to 7 is a controlled function.

2.2

10/12/2018

  1. (1) A firm (other than a credit union or a third country CRR firm) must ensure that one or more person performs each of the following PRA senior management functions on its behalf:
    1. (a) the Chief Executive function;
    2. (b) the Chief Finance function; and
    3. (c) the Chair of the Governing Body function.
  2. (2) If a vacancy arises in respect of one or more of the PRA senior management functions set out in (1), a firm must ensure that it appoints a person to fill that vacancy as soon as practicable.

2.3

07/03/2016

To the extent that,

  1. (1) a firm appoints a person to perform a function which, but for this rule, would be a PRA senior management function;
  2. (2) the appointment is solely to provide cover for a PRA approved person whose absence is:
    1. (a) temporary; or
    2. (b) reasonably unforeseen; and
  3. (3) the appointment is for less than 12 weeks in a consecutive 12-month period,

the description of that PRA senior management function does not relate to those activities of that person.

2.4

07/03/2016

  1. (1) If a person has been approved to perform a PRA senior management function in relation to a firm and also performs FCA activities, performance of the PRA senior management function will include the performance of those FCA activities, provided the following conditions are met:
    1. (a) the PRA’s approval to perform a PRA senior management function has been granted and continues in force;
    2. (b) at the time of approval being granted by the PRA, that person was not subject to an FCA approval to perform the particular FCA governing function;
    3. (c) the firm made the notification required by SUP10C.9.8 R (4) of the FCA Handbook; and
    4. (d) that person performs and is continuing to perform the FCA activities.
  2. (2) If a person has been approved to perform a PRA senior management function in relation to a firm which includes performance of FCA activities in the circumstances set out in (1), and that person:
    1. (a) ceases to perform the PRA senior management function;
    2. (b) within three months of ceasing performance, is approved to perform a new PRA senior management function; and
    3. (c) continues to perform the FCA activities,

performance of the new PRA senior management function will include the performance of those FCA activities, provided the conditions in (1) (a)-(d) are met.

2.5

07/03/2016

If a PRA approved person who has been performing a PRA senior management function which includes performance of FCA activities in the circumstances set out in 2.4, ceases to perform a PRA senior management function but continues to perform the FCA activities2.4 will continue to apply in respect of the performance of the FCA activities until the earlier of:

  1. (1) approval by the FCA in respect of the performance by that person of those FCA activities as an FCA governing function in relation to the firm; or
  2. (2) three months from the time that the person ceased to perform that PRA senior management function.

2.6

07/03/2016

If a PRA approved person:

  1. (1) (other than in the circumstances set out in 2.4 or 2.5), performs one or more FCA responsibilities;
  2. (2) ceases to perform any PRA senior management function; and
  3. (3) that person does not have an FCA approval to perform an FCA controlled function in relation to that firm

the functions in (1) will continue to be part of the PRA senior management function which the person most recently performed for that firm) until the earlier of:

  1. (1) approval by the FCA in respect of the performance by that person of an FCA controlled function in relation to the firm; or
  2. (2) three months from the time that the person ceased to perform that PRA senior management function.

2.7

07/03/2016

  1. (1) A firm must take all reasonable steps to ensure that before a person:
    1. (a) begins to perform a PRA senior management function; or
    2. (b) begins to perform new or revised responsibilities in performance of a PRA senior management function
  2.       that person is provided with all of the information and materials that the person may reasonably expect in order to perform that PRA senior management function or those new or revised responsibilities effectively and in accordance with the regulatory system.
  3. (2) A firm must have a policy about how it complies with (1) including the systems and controls it uses and must maintain adequate records of the steps taken to comply with (1).