SUP 10A.14 Changes to an FCA-approved person's details

An FCA-approved person's job may change from time to time as a result, for instance, of a change in personal job responsibilities or a firm's regulated activities. Where the changes will involve the person performing one or more FCA controlled functions different from those for which approval has already been granted, then an application must be made to the FCA for approval for the person to perform those FCA controlled functions. The firm must take reasonable care to ensure that an individual does not begin performing an FCA controlled function until the FCA has granted FCA-approved person status to that individual in respect of that FCA controlled function.

If:

1. (1)

   a firm is applying for approval for someone to perform a controlled function under this chapter; and

2. (2)

   that person is also ceasing to perform FCA controlled functions or a PRA controlled function in relation to the same firm or in relation to a firm in the same group;

the firm should generally use Form E. Further details can be found in SUP 10A.14.4D.

If a person is to perform an FCA controlled function under this chapter in relation to a firm for which they already perform an FCA controlled function as an approved person (whether under this chapter or SUP 10C (FCA senior managers regime for approved persons in SMCR firms)) but they are not at the same time ceasing to perform an FCA controlled function or PRA controlled function for the firm or a firm in the same group, a firm should use Form A. See SUP 10A.13.3D and SUP 10A.13.3AD for further details.

See SUP 10A.14.23G for circumstances in which a firm should use Form D rather than Form A or E.

1. (1)

   A firm should only use a Form E when the candidate is ceasing to perform a controlled function in a way that means that the candidate will cease to be approved for that controlled function.

2. (2)

   See SUP 10A.14.8AG to SUP 10A.14.8DG for the difference between temporarily ceasing to perform a controlled function (which means that approval for the performance of that controlled function continues) and permanently ceasing to perform a controlled function (which means that approval for the performance of that controlled function lapses).

3. (3)

   (1) and (2) are the reason that SUP 10A.14.4D refers to permanently ceasing to perform a controlled function.

SUP 10A.16.1 D explains how applications should be submitted.

If it is proposed that an FCA-approved person will no longer be performing an FCA controlled function under an arrangement entered into by the appointed representative of one principal, but will be performing the same or a different FCA controlled function under an arrangement entered into by the appointed representative of a new principal, the new principal will be required to make a fresh application for the performance of the FCA controlled function by that person. This applies even if the new principal is in the same group as the old principal or the appointed representative is the same.

Permanently ceasing to perform an FCA controlled function means that that person no longer has approval to perform that function. Permanent cessation does not mean that that person cannot return to perform that function, rather that if they do, they will need fresh approval.

Examples of when an FCA-approved person will have permanently ceased to perform an FCA controlled function include moving within a firm (see SUP 10A.14.1G to SUP 10A.14.5G), moving between firms (see SUP 10A.14.6G), resignation, dismissal, retirement, and death.

In cases of temporary absence (for example sick leave or parental leave) where the firm is keeping the same role open for an FCA-approved person, approval to perform the relevant FCA controlled function will continue and therefore the firm will not be required to submit a Form C. See SUP 10A.14.8HG for guidance on interim appointments.

As a result, an FCA-approved person who returns to perform the same FCA controlled function following such a temporary absence will not need fresh approval.

Where a firm is aware that an FCA-approved person will be absent for more than 12 weeks that firm can notify the FCA prior to the end of the 12-week period.

The duty to notify in SUP 10A.14.17R continues to apply during a temporary absence.

1. (1)

   Where an FCA-approved person is temporarily absent (see SUP 10A.14.8CG) a firm may decide to appoint another person to perform that FCA-controlled function during the interim period.

2. (2)

   Unless SUP 10A.5.6R (The 12-week rule) applies, the firm will be required to make a fresh application for the performance of the FCA-controlled function by a person who has been appointed for the interim period (see SUP 10A.13 (Application for approval and withdrawing an application for approval) for details).

3. (3)

   The firm will be required to notify the FCA under SUP 10A.14.8R when the person who was appointed for the interim period gives up the role on the return of the person who was temporarily absent.

SUP 10A.16.2 R explains how notifications should be submitted.

Notification under SUP 10A.14.10 R may be made by telephone, email or fax and should be made, where possible, within one business day of the firm becoming aware of the information. If the firm does not submit Form C, it should inform the FCA in due course of the reason. This could be done using Form D, if appropriate.

A firm is responsible for notifying the FCA if any FCA-approved person has permanently ceased to perform an FCA controlled function under an arrangement entered into by its appointed representative or former appointed representative or where any such FCA-approved person is temporarily absent.

A firm can submit Form C or Form E to the FCA in advance of the cessation date. When a person ceases the arrangement under which they perform an FCA controlled function, they will automatically cease to be an FCA-approved person in relation to that FCA controlled function. A person can only be an FCA-approved person in relation to a specific FCA controlled function. Therefore, a person is not an FCA-approved person during any period between ceasing to perform one FCA controlled function (when they are performing no other FCA controlled function) and being approved in respect of another FCA controlled function.

Sending forms promptly will help to ensure that any fresh application can be processed within the standard response times.

The duty to notify in SUP 10A.14.15 R does not apply to changes to an FCA-approved person's private address.

SUP 10A.16.2 R applies to the submission of Form D.

Failing to disclose relevant information to the FCA may be a criminal offence under section 398 of the Act.

1. (1)

   If, in relation to a firm which has completed the relevant Form A (SUP 10C Annex 3D), any of the details relating to arrangements and FCA controlled functions are to change, the firm must notify the FCA on Form D (SUP 10C Annex 6R).

2. (2)

   The notification under (1) must be made as soon as reasonably practicable after the firm becomes aware of the proposed change.

3. (3)

   This also applies in relation to an FCA controlled function for which an application was made using Form E.

4. (4)

   This rule also applies to a firm in respect of an approved person, to whom the grandfathering arrangements relating to the coming into force of the Act applied as if the firm had completed the relevant Form A for that person.

SUP 10A.16.2 R also applies to the submission of Form D under SUP 10A.14.21 G.

An example of where a firm should use Form D is when an individual who is appointed by one appointed representative becomes employed by another appointed representative but continues to perform the customer function for the firm. The firm should notify the FCA by completing Section 1.07 of Form D.