Home FCA Handbook REC REC 3 REC 3.13 Delegation of relevant functions
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REC 3.13 Delegation of relevant functions

Application

23/05/2025R

This section applies to a UK RIE where it is outsourcing its operational functions other than in relation to systems allowing or enabling algorithmic trading.

23/05/2025G

The notification requirements in MiFID RTS 7, specifying organisational requirements of regulated markets allowing algorithmic trading through their systems, apply to a UK RIE where those operational functions are to be outsourced.

30/04/2021G
  1. (1)

    The purpose of REC 3.13 is to enable the FCA to monitor any significant instances where UK recognised bodies outsource their functions to other persons (as permitted under Regulation 6 of the Recognition Requirements Regulations or, in relation to a RAP, under regulation 13 of the RAP regulations. See REC 2.2 and REC 2A.2).

  2. (2)

    The FCA does not need to be notified of every instance of outsourcing by a UK recognised body, but only where an activity or activities which form a significant part of a relevant function or which make a significant contribution to the performance of a relevant function are outsourced.

30/04/2021R

Where a UK recognised body makes an offer or agrees to delegate any of its relevant functions to another person, it must immediately give the FCA notice of that event, and:

  1. (1)

    inform the FCA of the reasons for that delegation or proposed delegation;

  2. (2)

    inform the FCA of the reasons why it is satisfied that it will continue to meet the recognition requirements or (for a RAP) RAP recognition requirements following that delegation;

  3. (3)

    where it makes such an offer by issuing a written invitation to tender to another body or person, give the FCA a copy of that invitation to tender; and

  4. (4)

    where it makes such an agreement, give the FCA a copy of that agreement.

01/04/2013R

A UK recognised body must immediately give the FCA notice, where it makes an offer or agrees to undertake any relevant function of another UK recognised body.