Senior Managers Regime - Applications and Notifications

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:
1. (a) the activities of its establishment in the UK; or
2. (b) if it does not have an establishment in the UK, its activities in the UK.

1.2

In this Part, the following definitions shall apply:

commencement date

means 7 March 2016.

current approved person approval

means

1. (1) an approval granted to a person under section 59 of FSMA (Approval for particular arrangements):
1. (a) by the PRA for the performance of a PRA senior management function; or
2. (b) by the FCA for the performance of an FCA designated senior management function or a significant influence function;
2. but excludes a notice given under section 59ZZA of FSMA treating a person as approved for those purposes.
3. (2) a deemed approval given by:
1. (a) the PRA following the submission of a conversion notification; or
2. (b) the FCA under any equivalent process contained in rules in the FCA Handbook; or
4. (3) for the purposes of 2.5(2) and 2.6(1)(a), an approval granted to that person under section 59 of FSMA by either the PRA or the FCA to perform a controlled function as defined in section 59 of FSMA prior to the commencement date but which ceased (i) on or before the commencement date; and (ii) during the period specified in 2.5(2) or 2.6(1)(a), as the case may be.

regulatory body

means any authority, body or person having, or who has had, responsibility for the supervision or regulation of any regulated activities or other financial services, whether within the United Kingdom or overseas.

PRA senior management approval application

means an application for approval to perform a PRA senior management function under section 59 of FSMA.

significant influence function

has the meaning given in the FCA Handbook.

statement of responsibilities

has the meaning given in Allocation of Responsibilities 1.

1.3

In this Part, PRA approved person also includes a person in relation to whom a notice under section 59ZZA has been given to an authorised person.

2.1

The PRA directs that a firm must make a PRA senior management approval application in accordance with 2.2, before the activities requiring approval commence.

2.2

The PRA directs that a firm must use form A (long form) for a PRA senior management approval application unless

1. (1) the firm must use Form E under 2.3; or
2. (2) the firm must use Form A (shortened form) under 2.6.

2.3

The PRA directs that, subject to 2.4 and 2.5, a firm must use Form E for a PRA senior management approval application if the PRA senior management approval application is in respect of a person who has a current approved person approval and is either:

1. (1) ceasing to perform a PRA senior management function and taking up a new PRA senior management function for the same firm or another member of its group; or
2. (2) ceasing to perform an FCA designated senior management function or significant influence function and taking up a PRA senior management function for the firm or another member of its group.

2.4

The PRA directs that a firm must not use Form E for a PRA senior management approval application if:

1. (1) a notification has been made or should be made to the PRA or FCA under any of the following:
1. (a) section 63(2A) of FSMA (Duty to notify regulator of grounds for withdrawal of approval);
2. (b) section 64C of FSMA (Requirement for relevant authorised persons to notify regulator of disciplinary action);
2. (2) a notification has been made or should be made to the PRA under any of the rules in Notifications 11 or to the FCA under any equivalent provisions of the FCA Handbook; or
3. (3) any of the circumstances in 5.2 apply in relation to:
1. (a) any PRA senior management function or FCA designated senior management function or significant influence function that that person is ceasing to perform; or
2. (b) any PRA senior management function or FCA designated senior management function or significant influence function that the person is continuing to perform in relation to that firm or a firm in the same group.

2.5

The PRA directs that a firm must not use form E if the person to whom the PRA senior management approval application relates:

1. (1) has never before been approved:
1. (a) by the PRA to perform a PRA senior management function; or
2. (b) by the FCA to perform an FCA designated senior management function or a significant influence function for any firm;
2. or
3. (2) has not been the subject of a current approved person approval in relation to any firm for more than six months prior to the date of application.

2.6

1. (1) The PRA directs that a firm must use form A (shortened form) for a PRA senior management approval application if:
1. (a) the person to whom the application relates:
1. (i) has at the time of application a current approved person’s approval; or
2. (ii) has had a current approved person’s approval within the previous six months; and
2. (b) there have been no matters arising in relation to the fitness and propriety of the person to whom the PRA senior management approval application relates which mean that the information provided to the FCA or PRA regarding fitness and propriety in connection with a current approved person’s approval may have changed since the application for the current approved person’s approval was made.
2. (2) A firm must not use Form A (shortened form) if the circumstances set out in 2.3 apply.

2.7

1. (1) The PRA directs that the form submitted for a PRA senior management approval application must be accompanied by a statement of responsibilities in accordance with Allocation of Responsibilities 2.1.
2. (2) A statement of responsibilities must be in the form set out here.

2.8

The PRA directs that the form submitted for a PRA senior management application by a designated investment firm must be accompanied by the designated additional information.

2A.1

1. (1) In the case of a section 59ZZA application, the following directions shall have effect in substitution for any directions relating to the provision of information, documents, statement of responsibilities and the form of application that would otherwise apply on the making of an application under section 60 of FSMA.
2. (2) The PRA directs that the application must contain the information and be accompanied by such documents as are set out in the form approved by the PRA for the purposes of this direction; except that where the application is in respect of a person who holds a current approved persons approval, Form E may be used in accordance with 2.3 instead.
3. (3) The PRA directs that the application must be accompanied by a statement of responsibilities in accordance with Allocation of Responsibilities 2.1, containing such information as is set out in the form approved by the PRA for the purposes of this direction; except that where Form E is used pursuant to (2) above, the application must provide a statement of responsibilities in the form specified in 2.7(2).
4. (4) A function performed by a person in relation to whom a notice under section 59ZZA of FSMA could be given, shall not (otherwise than for the purposes of making an application under section 60 of FSMA), be treated as a controlled function until the earliest of:
1. (a) 12 weeks beginning on the day on which IP completion day occurs;
2. (b) the giving of the notice under section 59ZZA of FSMA; or
3. (c) the notification by the PRA of its decision to grant or refuse the application.

2B.1

2A.1 shall apply to a SRO firm as if:

1. (1) the reference in 2A.1(2) and (3) to the forms approved by the PRA were references to the forms approved for the purposes of an application made by a SRO firm; and
2. (2) as if the reference in 2A.1(4)(a) to 12 weeks beginning on the day on which IP completion day occurs were a reference to 12 weeks beginning on the day the firm became a SRO firm.

3.1

A firm making an application to the PRA under section 63ZA of FSMA (for the variation of a conditional approval) must do so by submitting

1. (1) Form I; and
2. (2) a statement of responsibilities for the PRA-approved person concerned.

4.1

The PRA directs that a firm withdrawing an outstanding PRA senior management approval application must do so using Form B.

4.2

A firm withdrawing an application made under section 63ZA of FSMA (Variation of senior managers approval at request of relevant authorised person) must do so using Form B.

5.1

1. (1) A firm must notify the PRA no later than ten business days after a person permanently ceases to perform a PRA senior management function, using:
1. (a) Form E if a person permanently ceases to perform a PRA senior management function and the firm is also making an application for the same person to perform another PRA senior management function; and
2. (b) in all other cases, Form C.

5.2

1. (1) A firm must notify the PRA as soon as practicable after it becomes aware, or has information which reasonably suggests, that it will submit a qualified Form C in respect of a PRA approved person.
2. (2) Form C is qualified if the information it contains:
1. (a) relates to the fact that the firm has dismissed, or suspended, the PRA approved person from its employment;
2. (b) relates to the resignation by the PRA approved person while under investigation by the firm, the PRA or any other regulatory body;
3. (c) includes a notification under any of the provisions set out in 2.4(1) and (2); or
4. (d) otherwise reasonably suggests that it may affect the PRA's assessment of the PRA approved person's fitness and propriety.

5.3

If a PRA approved person ceases to perform a PRA senior management function for a firm but continues to perform one or more PRA senior management function for the same firm, the firm must submit a revised statement of responsibilities for the remaining PRA senior management function(s), using Form J.

6.1

If a PRA approved person's title, name or national insurance number changes, the firm for which the person performs a PRA senior management function must notify the PRA of that change within seven business days of the firm becoming aware of the matter, using Form D.

6.1A

If a PRA approved person has been temporarily absent for more than a 12 week period, the firm for which the person performs a PRA senior management function must notify the PRA of:

1. (1) that absence within seven business days of the end of the 12 week period; and
2. (2) the PRA approved person’s return from absence within seven business days of the date of their return,

in each case, using Form D.

6.2

If, in relation to a firm which has submitted an application on either Form A or Form E, as required by 2.2, any of the details relating to arrangements and PRA senior management functions are to change, the firm must notify the PRA using Form D as soon as reasonably practicable after the firm becomes aware of the proposed change.

6.3

1. (1) The PRA directs that if a firm is required to submit a revised statement of responsibilities under section 62A of FSMA, it must do so by submitting Form J with the revised statement of responsibilities.
2. (2) A firm must not use Form J where the revisions are to be made as part of arrangements involving an application:
1. (a) for approval for the person performing the PRA senior management function concerned to perform another PRA senior management function or FCA designated senior management function for the same firm; or
2. (b) to vary (under section 63ZA of FSMA) an approval for the person performing the PRA senior management function concerned to perform another PRA senior management function or FCA designated senior management function for the same firm.

7.1

1. (1) The PRA directs that:
1. (a) subject to (aa) a firm other than a credit union must make any applications, notifications or submissions required by this Part by submitting the form specified using the ONA system;
2. (aa) a firm making a section 59ZZA application must do so by submitting the information, documents, statement of responsibilities and forms required by 2A: in the manner set out in Notifications 7; and
3. (b) a credit union must make any applications, notifications or submissions required by this Part by submitting the form specified:
1. (i) using the ONA system; or
2. (ii) in the manner set out in Notifications 7.

7.2

If, under any direction or rule in this Chapter:

1. (1) a firm is required to make an application, notification or submission online; and
2. (2) the information technology systems used by the PRA fail and online submission is unavailable for 24 hours or more,

until such time as facilities for online submission are restored a firm must submit the specified form in the way set out in Notifications 7.

8.1

1. (1) Form A (long form) may be found here.
2. (2) Form A (shortened form) may be found here.
3. (3) Form B may be found here.
4. (4) Form C may be found here.
5. (5) Form D may be found here.
6. (6) Form E may be found here.
7. (7) Form I may be found here.
8. (8) Form J may be found here.