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UKLR 5.2 Externally managed companies

29/07/2024R

An applicant must satisfy the FCA that:

  1. (1)

    the discretion of its board to make strategic decisions on behalf of the applicant has not been limited or transferred to a person outside the applicant’s group; and

  2. (2)

    its board has the capability to act on key strategic matters in the absence of a recommendation from a person outside the applicant’s group.

29/07/2024G

In considering whether an applicant has satisfied UKLR 5.2.1R, the FCA will consider, among other things, whether the applicant’s board consists solely of non-executive directors and whether significant elements of the strategic decision-making of or planning for the applicant take place outside the applicant’s group – for example, with an external management company.