GEN 1 FCA approval and emergencies

This chapter applies to every firm. GEN 1.3 (Emergency) also applies to an unauthorised person to whom a rule in the Handbook applies.

GEN 1.2.2AR(1) also applies to a registered person communicating a financial promotion relating to one or more qualifying cryptoassets (in reliance on the exemption in article 73ZA of the Financial Promotion Order).

For the purpose of (3), reference in GEN 1.2.2AR(1) to a firm include reference to a registered person.

(1)

 Unless required to do so under the regulatory system, a firm must ensure that neither it nor anyone acting on its behalf claims, in a public statement or to a client, expressly or by implication, that its affairs, or any aspect of them, have the approval or endorsement of the FCA or another competent authority.

(1A)

 Paragraph (1) does not apply to a firm to the extent that it is incompatible with obligations under COBS 4.5A.16R.

(2)

 Paragraph (1) does not apply to statements that explain, in a way that is fair, clear and not misleading, that:

1. (a)

    the firm is an authorised person;

2. (b)

    [deleted]

3. (c)

    the firm has permission to carry on a specific activity;

4. (d)

    an authorisation order has been made in relation to an AUT, ACS or ICVC;

5. (e)

    a recognised scheme has that status;

6. (f)

    the firm's approved persons have been approved by the appropriate regulator for the purposes of section 59 of the Act (Approval for particular arrangements);

7. (g)

    the firm has been given express written approval by the appropriate regulator in respect of a specific aspect of the firm's affairs.

(3)

 Paragraph (1) applies with respect to the carrying on of both regulated activities and unregulated activities.

If any emergency arises which:

1. (a)

   makes it impracticable for a person to comply with a particular rule in the Handbook;

2. (b)

   could not have been avoided by the person taking all reasonable steps; and

3. (c)

   is outside the control of the person, its associates and agents (and of its and their employees);

the person will not be in contravention of that rule to the extent that, in consequence of the emergency, compliance with that rule is impracticable.

Paragraph (1) applies only for so long as:

1. (a)

   the consequences of the emergency continue; and

2. (b)

   the person can demonstrate that it is taking all practicable steps to deal with those consequences, to comply with the rule, and to mitigate losses and potential losses to its clients (if any).

The person must notify the FCA as soon as practicable of the emergency and of the steps it is taking and proposes to take to deal with the consequences of the emergency.

A notification under (3) must be given to or addressed and delivered in accordance with SUP 15.7 (Form and method of notification) (whether or not the person is a firm). If the person is not a firm, the notification must be given to or addressed for the attention of:Contact Centre, The Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN (tel: 0300 500 0597).