GEN General Provisions sourcebook

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GEN 2

Interpreting the Handbook

GEN 2.1

Introduction

Application

GEN 2.1.2

handbook-rule
This chapter applies to every person to whom any provision in the Handbook applies. In relation to a provision other than a rule, the rules in this chapter apply as if they were part of that provision.

The Reader's Guide

GEN 2.1.10

handbook-guidance
The Reader's Guide supplements this chapter. It provides an introduction to the structure and contents of the Handbook and its related materials, explaining how the different modules fit together and how to interpret and use the Handbook.

GEN 2.2

Interpreting the Handbook

  • 01/12/2004

Purposive interpretation

GEN 2.2.1

handbook-rule
Every provision in the Handbook must be interpreted in the light of its purpose.

GEN 2.2.2

handbook-guidance
The purpose of any provision in the Handbook is to be gathered first and foremost from the text of the provision in question and its context among other relevant provisions. The guidance given on the purpose of a provision is intended as an explanation to assist readers of the Handbook. As such, guidance may assist the reader in assessing the purpose of the provision, but it should not be taken as a complete or definitive explanation of a provision's purpose.

Evidential provisions

GEN 2.2.3

handbook-rule
Any rule in the Handbook which has the status letter "E" in the margin or heading:
(1) is to be taken also to provide that contravention of the rule does not give rise to any of the consequences provided for by provisions of the Act other than section 138C(Evidential provisions); and
(2) incorporates the status letter "E" in the margin or heading as part of the rule.

GEN 2.2.4

handbook-guidance
(1) The rules to which section 138Cof the Act applies ("evidential provisions") are identified in the Handbook by the status letter "E" in the margin or heading.
(2) Other provisions in the Handbook, although also identified by the status letter "E" in the margin or heading, are actually not rules but provisions in codes and GEN 2.2.3 R does not apply to them. These code provisions are those provisions in the Code of Practice for Approved Persons (APER 3 and APER 4) and the Code of Market Conduct (MAR 1) with the status letter "E".

GEN 2.2.5

handbook-guidance
Chapter 6 of the Reader's Guide contains an explanation of the significance of the status letters R, E, G, D, UK, EU, P and C, and includes further information on Handbook provisions, including evidential provisions.

Use of defined expressions

GEN 2.2.6

handbook-guidance
Expressions with defined meanings appear in italics in the Handbook, unless otherwise stated in individual sourcebooks or manuals.

GEN 2.2.7

handbook-rule
In the Handbook (except IPRU, unless otherwise indicated):
(1) an expression in italics which is defined in the Glossary has the meaning given there; and
(2) an expression in italics which relates to an expression defined in the Glossary must be interpreted accordingly.

GEN 2.2.8

handbook-guidance
Examples of related expressions are:
(1) "advice on investments" and "advise on investments", which should be interpreted by reference to "advising on investments";
(2) "closely linked", which should be interpreted by reference to "close links";
(3) "controls" and "controlled", which should be interpreted by reference to "control"; and
(4) "effect", as for example in "effect a life policy", which should be interpreted by reference to "effecting contracts of insurance".

GEN 2.2.9

handbook-guidance
Unless the context otherwise requires or unless otherwise stated in a particular sourcebook or manual, where italics have not been used, an expression bears its natural meaning (subject to the Interpretation Act 1978; see GEN 2.2.11 R to GEN 2.2.12 G).

GEN 2.2.10

handbook-guidance
The Interim Prudential sourcebooks (IPRU) have individual arrangements for defined terms and each contains rules or guidance on its own arrangements. In respect of those sourcebooks, reliance should not be placed on the definitions which appear in the Glossary unless otherwise indicated.

Application of the Interpretation Act 1978

GEN 2.2.11

handbook-rule
The Interpretation Act 1978 applies to the Handbook.

GEN 2.2.12

handbook-guidance
The application of the Interpretation Act 1978 to the Handbook has the effect, in particular, that:
(1) expressions in the Handbook used in the Act have the meanings which they bear in the Act, unless the contrary intention appears;
(2) where reference is made in the Handbook to an enactment, it is a reference to that enactment as amended, and includes a reference to that provision as extended or applied by or under any other enactment, unless the contrary intention appears; and
(3) unless the contrary intention appears:
(a) words in the Handbook importing the masculine gender include the feminine and words importing the feminine gender include the masculine;
(b) words in the Handbook in the singular include the plural and words in the plural include the singular.

Civil partnership - references to stepchildren etc

GEN 2.2.12A

handbook-rule
Any reference in a provision of the Handbook made before 5 December 2005 to a stepchild, step-parent, stepdaughter, stepson, stepbrother or stepsister is to be interpreted in accordance with section 246 of the Civil Partnership Act 2004.

GEN 2.2.12B

handbook-guidance
GEN 2.2.12A R and sections 246 and 247 of the Civil Partnership Act 2004 amend each reference in the Handbook to a stepchild, step-parent and certain related expressions to take account of civil partnerships. As a result a reference (for example) to a stepchild of a person (A) includes a reference to the child of the civil partner of A where that child is not A's child.

Cross-references in the Handbook

GEN 2.2.13

handbook-rule
A reference in the Handbook to another provision in the Handbook is a reference to that provision as amended from time to time.

GEN 2.2.13A

handbook-rule
Unless a contrary intention appears, to the extent that a provision made by the appropriate regulator ('the referring provision') contains a cross-reference to another provision that is not made by that regulator ('the referred provision'), the referred provision is to be taken to have been made by the appropriate regulator to the extent necessary to make the referring provision function with the full effect indicated by the reference.
  • 01/04/2013

GEN 2.2.13B

handbook-rule

A reference in the Handbook to a provision in the PRA Rulebook is a reference to that provision as amended from time to time.

  • 03/08/2015

References to writing

GEN 2.2.14

handbook-rule
If a provision in the Handbook refers to a communication, notice, agreement or other document "in writing" then, unless the contrary intention appears, it means in legible form and capable of being reproduced on paper, irrespective of the medium used. Expressions related to writing must be interpreted accordingly.

GEN 2.2.15

handbook-guidance
GEN 2.2.14 R means that, for example, electronic media may be used to make communications which are required by a provision of the Handbook to be "in writing", unless a contrary intention appears, or the use of electronic media would contravene some other requirement. GEN 2.2.14 R does not, however, affect any other legal requirement which may apply in relation to the form or manner of executing a document or agreement.

GEN 2.2.16

handbook-guidance
"Document" is a defined term in the Glossary, the definition of which includes information recorded in any form, including electronic form.

Activities covered by general rules

GEN 2.2.17

handbook-rule
A general rule (that is a rule made by the appropriate regulator under the general rule making powers) is to be interpreted as:
(1) applying to a firm with respect to the carrying on of all regulated activities, except to the extent that a contrary intention appears; and
(2) not applying to a firm with respect to the carrying on of unregulated activities, unless and then only to the extent that a contrary intention appears.

Continuity of authorised partnerships and unincorporated associations

GEN 2.2.18

handbook-rule
(1) If a firm, which is a partnershipor unincorporated association, is dissolved, but its authorisation continues to have effect under section 32 of the Act (Partnerships and unincorporated associations) in relation to any partnership or unincorporated association which succeeds to the business of the dissolved firm, the successor partnership or unincorporated association is to be regarded as the same firm for the purposes of the Handbookunless the context otherwise requires.
(2) [deleted]
(3) [deleted]

GEN 2.2.19

handbook-guidance
In principle, it is possible to view a change of partners in a partnership, or a change in the membership of the unincorporated association, as the formation of a new partnership or association. GEN 2.2.18 R reflects section 32 of the Act (Partnerships and unincorporated associations), which provides for the continuing authorisation of partnerships and unincorporated associations following a change in partners or members if certain conditions are satisfied. GEN 2.2.18 R ensures a similar effect to section 32in relation to the status of the partnership or unincorporated associations as a "firm" or "authorised person" for the purposes of the Handbook.

European Economic Area (EEA)

GEN 2.2.21

handbook-guidance
The agreement on the European Economic Area, signed at Oporto on 2 May 1992, extends certain EU legislation to those EEA States which are not Member States of the EU, namely Norway, Iceland and Liechtenstein. References in the Handbook concerning the territorial scope of EU law should therefore be read as extending throughout the EEA where the context requires.

Treaty of Lisbon

GEN 2.2.22

handbook-guidance
As a result of the Treaty of Lisbon, the European Union has replaced and succeeded the European Community. References in the Handbook to the European Community should therefore be interpreted as references to the European Union, where the context requires. In particular, references which are copied out directly from EU or UK legislation may contain references to the Community which should be read in conjunction with section 3 of the European Union (Amendment) Act 2008.

Application of provisions made by both the FCA and the PRA

GEN 2.2.23

handbook-rule
(1) This rule applies to Handbook provisions made by both the FCA and the PRA. It may affect their application by the FCA to PRA-authorised persons and PRAapproved persons, and may affect their application by the PRA to any authorised person or approved person.
(2) Where a Handbook provision (or part of one) goes beyond the FCA's or PRA's powers or regulatory responsibilities, it is to be interpreted as applied by that regulator to the extent of that regulator's powers and regulatory responsibilities only.
(3) The extent of a Handbook provision is to be interpreted as cut back under GEN 2.2.23R (2) by the minimum degree necessary.
  • 01/04/2013

GEN 2.2.24

handbook-guidance
The published Memorandum of Understanding between the FCA and the PRA describes their regulatory responsibilities.
  • 01/04/2013

GEN 2.2.25A

handbook-guidance
Examples of rules being interpreted as cut back by GEN 2.2.23 R include the following:
(1) SYSC 6.1.1 R requires a firm to maintain adequate policies and procedures to ensure compliance with its obligations under the regulatory system; SYSC 6.1.1 R should be interpreted:
(a) as applied by the FCA in respect of a PRA-authorised person's compliance with regulatory obligations that are the responsibility of the FCA (for example, in respect of a bank maintaining policies and procedures to ensure compliance with banking conduct requirements in BCOBS); and,
(b) as applied by the PRA in respect of a PRA-authorised person's compliance with those regulatory obligations that are the responsibility of the PRA (for example, in respect of a bank maintaining policies and procedures to ensure compliance with financial resources requirements in the PRA Rulebook and the EU CRR).
  • 03/07/2015

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Transitional Provisions and Schedules

GEN TP 1

Transitional provisions

GEN TP 1.3

(3) Transitional Provisions applying to GEN only



GEN TP 1.3 (4) Transitional Provisions applying to GEN only
The references to "GEN 6.1" in the table above must be read as "GEN 6.1 and General Provisions 7 in the PRA Rulebook".

GEN TP 2

Transitional Provisions applying across the FCA and PRA Handbooks

Table: 1 Transitional Provisions applying across the FCA and PRA Handbooks

Table 2: Transitional Provisions applying across the FCA and PRA Handbooks

  • 01/04/2013

GEN Sch 1

Record keeping requirements

  • 01/12/2004

GEN Sch 1.1

handbook-guidance

GEN Sch 2

Notification requirements

  • 01/12/2004

GEN Sch 2.1

handbook-guidance

GEN Sch 2.2

handbook-guidance

GEN Sch 3

Fees and other required payments

  • 01/12/2004

GEN Sch 3.1

handbook-guidance

GEN Sch 6

Rules that can be waived

  • 01/12/2004

GEN Sch 6.1B

handbook-guidance
  • 01/04/2013

GEN Sch 6.2

handbook-guidance
  • 01/04/2013

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