Conduct Rules

Application provision

1.1 The changes to this rule are effective from 23:00 on 31/12/2020.

  1. (1) This Part applies to every function a person (P) performs in relation to a firm (A) that is:
    1. (a) a CRR firm;
    2. (b) a credit union; or
    3. (c) a third country CRR firm in relation to:
      1. (i) the activities of its establishment in the UK; or
      2. (ii) if it does not have an establishment in the UK, activities in the UK.
  2. (2) This Part only applies if P:
    1. (a) is approved under section 59 of FSMA to perform a senior management function in relation to A;
    2. (b) is an employee of A that should have been so approved;
    3. (c) is an employee or director who is performing a function that would have been a controlled function but for Senior Management Functions 2.3;
    4. (d) performs a certification function in relation to A;
    5. (e) is a Conduct Rules non-executive director of A; or
    6. (f) is a person in relation to whom a notice under section 59ZZA has been or could be given by the PRA to an authorised person.
  3. (3) 3.1 to 3.3 only apply to a person in (2)(a), (b), or (f).
  4. (4) 3.4 only applies to a person in (2)(a), (b), (e) or (f).

1

Application and Definitions

1.1

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

  1. (1) This Part applies to every function a person (P) performs in relation to a firm (A) that is:
    1. (a) a CRR firm;
    2. (b) a credit union; or
    3. (c) a third country CRR firm in relation to:
      1. (i) the activities of its establishment in the UK; or
      2. (ii) if it does not have an establishment in the UK, activities in the UK.
  2. (2) This Part only applies if P:
    1. (a) is approved under section 59 of FSMA to perform a senior management function in relation to A;
    2. (b) is an employee of A that should have been so approved;
    3. (c) is an employee or director who is performing a function that would have been a controlled function but for Senior Management Functions 2.3;
    4. (d) performs a certification function in relation to A;
    5. (e) is a Conduct Rules non-executive director of A; or
    6. (f) is a person in relation to whom a notice under section 59ZZA has been or could be given by the PRA to an authorised person.
  3. (3) 3.1 to 3.3 only apply to a person in (2)(a), (b), or (f).
  4. (4) 3.4 only applies to a person in (2)(a), (b), (e) or (f).

1.2

07/11/2017

In this Part, the following definitions shall apply:

director

means, in relation to a firm, a person who is a member of the board of directors of the firm or, if there is no such board, the equivalent body responsible for the management of the firm.

employee

has the meaning given in Certification 1.2.

senior management function

means either a PRA senior management function or an FCA designated senior management function.

2

Individual Conduct Rules

2.1

07/03/2016

Individual Conduct Rule 1: You must act with integrity.

2.2

07/03/2016

Individual Conduct Rule 2: You must act with due skill, care and diligence.

2.3

07/03/2016

Individual Conduct Rule 3: You must be open and co-operative with the FCA, the PRA and other regulators.

3

Senior Manager Conduct Rules

3.1

07/03/2016

Senior Manager Conduct Rule 1: You must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively.

3.2

07/03/2016

Senior Manager Conduct Rule 2: You must take reasonable steps to ensure that the business of the firm for which you are responsible complies with the relevant requirements and standards of the regulatory system.

3.3

07/03/2016

Senior Manager Conduct Rule 3: You must take reasonable steps to ensure that any delegation of your responsibilities is to an appropriate person and that you oversee the discharge of the delegated responsibility effectively.

3.4

07/03/2016

Senior Manager Conduct Rule 4: You must disclose appropriately any information of which the FCA or PRA would reasonably expect notice.