APER 1
Application and purpose
APER 1.1B
Application
- 01/04/2013
Who?
APER 1.1B.1
See Notes
APER applies to:
- (1) PRA-approved persons; and
- (2) FCA-approved persons in relation to whom the FCA has given its approval under section 59 of the Act in respect of the performance by them of significant-influence functions in relation to the carrying on by PRA-authorised persons of regulated activities.
- 01/04/2013
What?
APER 1.1B.2
See Notes
- (1) APER applies to the performance by an approved person of:
- (a) PRA controlled functions (whether or not approval has been sought and granted); and
- (b) FCA controlled functions that are significant-influence functions (whether or not approval has been sought and granted);
- in relation to the PRA-authorised persons in relation to which that person is an approved person.
- (2) APER also applies to the performance by an approved person of any other significant-influence functions in relation to the PRA-authorised persons referred to in (1).
- 01/04/2013
APER 1.1B.3
See Notes
The functions described in APER 1.1B.2 P are called accountable functions.
- 01/04/2013
APER 1.1B.4
See Notes
The relevance of MiFID to the Statements of Principle will depend on the extent to which the corresponding requirement imposed on firms under MiFID is reserved to a Home State regulator or has been disapplied under MiFID (see APER 2.1B.2 P and FIT 1.2.4A G).
- 04/10/2013
Where?
APER 1.1B.5
See Notes
The territorial scope of the approved persons regime and its application to incoming EEA firms is set out in SUP 10B.1 (see SUP 10B.1.11 R and SUP 10B.1.12 R).
- 01/04/2013
Coverage of APER
APER 1.1B.6
See Notes
APER 1.1B.7 G gives examples of the effect of APER 1.1B.1 P and APER 1.1B.2 P. The first column says whether the example involves an FCA-approved person and the second column says whether the example involves a PRA-approved person. So, for example, if there is a "Yes" in both columns that means that the example concerns a person who has been approved both by the FCA and by the PRA. The third column explains what functions APER covers in the scenario set out in the first two columns. The table is divided between cases in which the person performs the controlled function for an FCA-authorised person, and ones where the person does so for a PRA-authorised person.
- 01/04/2013
APER 1.1B.7
See Notes
Table: Examples of what activities APER covers
| FCA approved | PRA approved | Coverage of APER |
| FCA-authorised person | ||
| (1) Yes, in relation to firm A | Not applicable | Does not apply |
| PRA-authorised person | ||
| (2) No | Yes, in relation to firm A | Applies to PRA controlled function. Also applies to any other significant-influence functions performed for firm A, even if they are not controlled functions. |
| (3) Yes, in relation to firm A (for a significant-influence function) | No | Applies to FCA controlled function. Also applies to any other significant-influence functions performed for firm A, even if they are not controlled functions. |
| (4) Yes, in relation to firm A (for a customer-dealing function) | No | Does not apply. If he is also performing a significant-influence function that is not a controlled function, APER does not apply to that function either. |
| (5) Yes, in relation to firm A (for a customer-dealing function) | Yes, in relation to firm A | Applies to PRA controlled function. Does not apply to customer-dealing function. Also applies to any other significant-influence functions performed for firm A, even if they are not controlled functions. |
| (6) Yes, in relation to firm A (for a significant-influence function) | Yes, in relation to firm A | Applies to FCA controlled function and PRA controlled function. Also applies to any other significant-influence functions performed for firm A, even if they are not controlled functions. |
| (7) Yes, in relation to firm A (for a significant-influence function and customer-dealing function) | Yes, in relation to firm A | The answer is the same as for scenario (6). Does not apply to customer-dealing function. |
| (8) Yes, in relation to firm A (for a significant-influence function). No, in relation to firm B, | Yes, in relation to firm A. No, in relation to firm B, | In relation to firm A, the answer is the same as for scenario (6). However, APER does not apply to any function that the approved person carries on in relation to firm B, even if that function is a significant-influence function. However, if the function that he performs in relation to firm B is a controlled function, the approved person and firm B may be subject to legal sanctions (see SUP 10B.11.1 G and SUP 10B.11.3 G). |
- 01/04/2013
APER 1.1B.8
See Notes
A person may be an approved person in relation to more than one PRA-authorised person. When that is the case, APER applies in relation to all those firms.
- 01/04/2013
APER 1.1B.9
See Notes
- (1) APER 1.1B.2 P refers to the PRA-authorised person in relation to which a person is an approved person.
- (2) Under section 59 of the Act (Approval for particular arrangements) there are two kinds of approved person.
- (3) Section 59(1) of the Act describes the first. It covers a person who performs a controlled function under an arrangement entered into by an authorised person ("A"). In this case, APER 1.1B.2 P refers to A.
- (4) Section 59(2) of the Act describes the second. It covers a person who performs a controlled function under an arrangement entered into by a contractor ("B") of an authorised person ("A"). In this case, APER 1.1B.2 P refers to A (and not B).
- 01/04/2013
Rule in GEN about provisions shared between the FCA and PRA
APER 1.1B.10
See Notes
GEN 2.2.23 R (Cutover: Application of provisions made by both the FCA and the PRA) does not apply to any provision of APER marked with an "E" in the margin.
- 01/04/2013
APER 1.1B.11
See Notes
GEN 2.2.23 R does not apply to any of APER. It does not apply to any part of APER that is not shared, as GEN 2.2.23 R only applies to Handbook provisions made by both the FCA and the PRA. Hence GEN 2.2.23 R does not apply to the Statements of Principle. APER 1.1A.10 E means that GEN 2.2.23 R does not apply to shared provisions marked with an "E" in the margin. GEN 2.2.23 R does not apply to shared guidance in APER because the guidance is about material to which GEN 2.2.23 R does not apply.
- 01/04/2013
APER 1.2
Purpose
- 01/12/2004
APER 1.2.1B
See Notes
The Statements of Principle contained in APER 2 are issued under section 64(1A) of the Act (Conduct: statements and codes). The paragraphs of the application section in APER 1.1B labelled "P" also form part of the Statements of Principle.
- 01/04/2013
APER 1.2.2
See Notes
Section 64(2) of the Act states that if an appropriate regulator issues Statements of Principle it must also issue a code of practice for the purpose of helping to determine whether or not a person's conduct complies with the Statements of Principle. The Code of Practice for Approved Persons in APER 3 and APER 4 fulfils this requirement.
- 01/04/2013
APER 1.2.3A
See Notes
The Code of Practice for Approved Persons sets out descriptions of conduct which, in the opinion of the PRA, do not comply with a Statement of Principle. The Code of Practice for Approved Persons also sets out, in certain cases, factors which, in the opinion of the PRA, are to be taken into account in determining whether or not an approved person's conduct complies with a Statement of Principle. The guidance set out in APER 3 and APER 4 does not form part of the Code of Practice for Approved Persons.
- 01/04/2013