Application and purpose

Part

APER Statements of Principle and Code of Practice for Approved Persons

Chapter

Application and purpose

Printed on: 14/10/2024

Rulebook at: 06/07/2010

APER 1

Application and purpose

APER 1.1

Application

01/12/2004

Who?

APER 1.1.1

APER applies to approved persons.

01/12/2001

APER 1.1.2

The Statements of Principle apply only to the extent that a person is performing a controlled function for which approval has been sought and granted.

01/11/2007

APER 1.1.3

Section 64(11) of the Act states that the power to issue Statements of Principle and codes of practice includes power to make different provisions in relation to persons, cases or circumstances of different descriptions. Statements of Principle 1, 2, 3 and 4 apply to all approved persons, and Statements of Principle 5, 6 and 7 apply to those approved to perform significant influence functions.

01/11/2007

APER 1.1.4

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 2.1.1A P and FIT 1.2.4A G. See also COBS 1 Annex 1, Part 2, 1.1R (EEA territorial scope rule: compatibility with European law)).

01/11/2007

Where?

APER 1.1.5

The territorial scope of the approved persons regime and its application to incoming EEA firms is set out in SUP 10.1 (see SUP 10.1.13 R and 10.1.14 R).

01/11/2007

APER 1.2

Purpose

01/12/2004

APER 1.2.1

The Statements of Principle contained in APER 2 are issued under section 64(1) of the Act (Conduct: statements and codes).

01/12/2001

APER 1.2.2

Section 64(2) of the Act states that if the FSA 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.

01/12/2001

APER 1.2.3

The Code of Practice for Approved Persons sets out descriptions of conduct which, in the opinion of the FSA, do not comply with a Statement of Principle and, in the case of Statement of Principle 3, conduct which tends to show compliance within that statement. The Code of Practice for Approved Persons also sets out, in certain cases, factors which, in the opinion of the FSA, 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.

01/12/2001

APER 1.2.5

As set out in SUP 10.3.1 R (Arrangements and regulated activities), a function is a controlled function only to the extent that it is performed under an arrangement entered into by:

(1) a firm; or
(2) a contractor of the firm;

in relation to the carrying on by the firm of a regulated activity.

01/12/2001

APER 1.2.6

The Statements of Principle apply only to the performance of a controlled function (that is, to the activities carried on under the arrangement described in the firm's application for approval).

01/12/2001

APER 1.2.7

The FSA recognises that an approved person may be performing functions which are unrelated to regulated activities or are otherwise outside the description of a controlled function. The fact that a person may be approved for one purpose does not have the effect of bringing all his functions within the controlled function, nor of making those functions subject to the Statements of Principle.

01/12/2001

APER 1.2.8

The territorial scope of the approved persons regime is set out in SUP 10.1 (Application).

01/12/2001

APER 1.2.9

The Statements of Principle apply only to the extent that a person is performing a controlled function for which approval has been sought and granted.

01/12/2001