Transitional Provisions and Schedules

Part

SUP Supervision manual

Chapter

Transitional Provisions and Schedules

Printed on: 06/11/2024

Rulebook at: 31/12/2006

Transitional Provisions and Schedules

SUP TP 1

Transitional provisions

SUP TP 1.1

Transitional provisions applying to the Supervision manual only

Definitions for these transitional provisions, additional to those in the Glossary, are provided at paragraph 16 of the table.

SUP TP 1.2

(1)

(2) Material to which the transitional provision applies

(3)

(4) Transitional provision

(5) Transitional provision: dates in force

(6) Handbook provision: coming into force

SUP 3.3.2 R (1)

Auditors
A firm will not contravene SUP 3.3.2 R (1), if the office of auditor is filled at commencement. The auditor filling the office at that time will be deemed to be appointed under SUP 3.3.2 R.

From commencement

Commencement

SUP 3.9 and SUP 3.10

Expired

SUP 3.9.4 R

Expired

SUP 3.10

Expired

SUP 3.10.6 R, SUP 3.10.7 R

Expired

SUP 3.10

Expired

SUP 4.3.1 R (1) and SUP 4.4.1 R (1)

Actuaries
A firm will not contravene SUP 4.3.1 R (1) or SUP 4.4.1 R (1) to the extent that the office of actuarial function holder, with-profits actuary or appropriate actuary is filled by an actuary appointed on or before 31 December 2004, provided that that actuary was appointed in accordance with the statutory requirements, or the requirements of the regulatory system, in force at that time.

From commencement

Commencement

SUP 4

Anything done before 31 December 2004 for the purposes of an amended provision in SUP 4 has effect as if done under that provision.

From 31 December 2004

31 December 2004

[deleted]

4BA

SUP 4.3.16AR (3) and SUP 4.3.16AR (4)

The rules apply in respect of each financial year commencing on or after 1 January 2005.

From 31 December 2004

31 December 2004

[deleted]

SUP 4.3.3 R

If a firm's actuary has been appointed by a previous regulator under statutory or contractual powers and remains in office immediately before commencement, that appointment will be deemed to have been made under SUP 4.3.3 R, but on the terms of the actual appointment.

From commencement

Commencement

SUP 8.6.1 G

Expired

SUP 9.4

Individual guidance

From 19 July 2001

21 June 2001

(1)

If a person acts in accordance with individual written guidance:

(a)

given to him by any previous regulator (or body whose functions were assumed by a previous regulator);

(b)

relating to any pre-commencement provision; and

(c)

in the circumstances contemplated by that guidance;

then the FSA will proceed on the footing that the person has complied with the aspects of any provision in or under the Act (including a rule or guidance in the Handbook) to which the guidance relates if:

(d)

that provision is substantially similar to the pre-commencement provision in relation to the matter with which the guidance is concerned;

(e)

the guidance was current immediately before commencement; and

(f)

the guidance has not been superseded.

(2)

SUP 9.4.2 G - SUP 9.4.4 G are relevant for individual guidance in (1) in the same way as for individual written guidance given by the FSA .

(3)

References to "individual written guidance" in (1) and (2) include a written concession from a pre-commencement provision which is substantially similar to guidance in the Handbook.

SUP 10.13.6 R

Expired

SUP 12.5.5 R
SUP 12.5.7 R

Expired

SUP 15.8.4 G

Notification of Delegation

From 13 February 2004 to 13 February 2007

13 February 2004

(1)

Subject to (2), SUP 15.8.4 G does not apply to a UCITS management company which became authorised before 13 February 2004.

(2)

Paragraph (1) does not apply in relation to any UK firm which exercises an EEA right under the UCITS Directive (in which event the rule applies in relation to acts of delegation occurring on or after the date on which the firm begins to exercise such rights).

SUP 12.5

A firm conducting designated investment business need not amend its written contract with an appointed representative (appointed before 15 January 2004) to take account of amendments to SUP 12.5 coming into force between 30 June 2004 and 30 June 2005, until 30 June 2005 or the date on which the contract is next updated (whichever is earlier).

From 30 June 2004 until 30 June 2005, that is, 12 months.

Commencement, and as amended with effect from 30 June 2004

SUP 16.4.5 R
SUP 16.5.5 G

Expired

10A

SUP 16.4
SUP 16.5

SUP 16.4 (Annual controllers report) and SUP 16.5 (Annual close links report) do not apply to a firm with permission to carry on only insurance mediation activity, mortgage mediation activity, or both.

(1) in respect of mortgage mediation activities, 31 October 2004 - 31 March 2005;
(2) in respect of insurance mediation activities, 14 January 2005 - 31 March 2005,

1 April 2005

SUP 16.6
SUP 16.7
SUP 16.8

Expired

SUP 16.7.7 R;
SUP 16.7.9 R,
SUP 16.7.11 R,
SUP 16.7.16 R,
SUP 16.7.24 R,
SUP 16.7.26 R,
SUP 16.7.35 R,
SUP 16.7.44 R,
SUP 16.7.46 R,
SUP 16.7.48 R,
SUP 16.7.57 R

Expired

12A

SUP 16.7.38 R

An investment management firm which, before 1 December 2003, was already submitting consolidated financial returns in the form in:
(a) SUP 16 Ann 10R; or
(b) SUP 16 Ann 7R (with associated guidance in SUP 16 Ann 8G);
may continue to use these forms instead of the consolidated financial resources return in SUP 16 Ann 5R.

From 1 December 2003 until, but not including, the date on which the provisions of the Financial Groups Directive take effect in the United Kingdom.

1 December 2003

12B

SUP 16.7.54 R;
SUP 16.7.76 R
SUP 16.7.79 R
SUP 16.7.80 R

(1)

Where a rule in SUP 16.7 requires a firm to submit information using the RMAR on a half-yearly basis, and the firm has:

From 1 April 2005

1 April 2005

(a)

annual income of less than £5m but more than £60,000 in total from insurance mediation activity, mortgage mediation activity and its permitted activities as a personal investment firm, and

(b)

an accounting reference date which

(i)

falls between 31 December 2004 and 31 March 2005; or

(ii)

falls between 30 June 2005 and 30 September 2005

this must be read as a reference to providing the first return in accordance with SUP TR 12CR.

(2)

Where a rule in SUP 16.7 requires a firm to submit information using the RMAR on a half-yearly basis, and the firm has:

(a)

annual income of less than £5m but more than £60,000 in total from insurance mediation activity, mortgage mediation activity and its permitted activities as a personal investment firm, and

(b)

an accounting reference date which is not within (1)(b);

the first return must cover the firm's first full financial half-year which starts on or after 1 April 2005 and be submitted 30 business days after period end.

(3)

Where a firm is carrying on regulated activities before 1 April 2005 and is required under a rule in SUP 16.7 to submit information using the MLAR, the first return must cover the firm's first full financial quarter which starts on or after this date and be submitted 20 business days after period end.

(4)

Where a rule in SUP 16.7 requires a firm to submit information using the RMAR on a half-yearly basis, and the firm has:

(a)

annual income of less than £60,000 in total from insurance mediation activity, mortgage mediation activity and its permitted activities as a personal investment firm, and

(b)

an accounting reference datewhich falls between 31 December 2004 and 30 December 2005,

the relevant rule must be read as requiring the first return to be provided in accordance with SUP TR 12DR.

(5)

Where a rule in SUP 16.7 requires a firm to submit information using the RMAR on a quarterly basis, and the firm has an accounting reference date which falls between 31 December 2004 and 30 December 2005 the relevant rule must be read as requiring the first return to be provided with SUP TR 14B.

12C

If SUP TR 12B R (1) - (3) applies, the firm's first return must be provided as follows:

Accounting reference date

Reporting period starts

Reporting period ends

Return to be provided

Between 30 June 2005 and 30 September 2005

1 April 2005

Accounting reference date within 2005

30 business days after period end.

31 December 2004

1 April 2005

30 June 2005

30 business days after the period end

Between 1 January 2005 and 31 March 2005

1 April 2005

6 months after the accounting reference date within 2005

30 business days after period end

12D

(1)

If SUP TR 12BR (4)SUP TR 12BR (4) applies, the firm's first return must be provided as follows:

Accounting reference date

Reporting period starts

Reporting period ends

Return to be provided

31 December 2004

1 April 2005

30 June 2005

30 business days after period end
(Note 1)

Between 1 January 2005 and 31 March 2005

1 April 2005

6 months after the accounting reference date within 2005

30 business days after period end
(Note 1)

Between 1 April 2005 and 29 June 2005

the day following the accounting reference date within 2005

6 months after the accounting reference date within 2005

30 business days after period end
(Note 1)

Between 30 June 2005 and 29 September 2005

1 April 2005

Accounting reference date within 2005

30 business days after period end

Between 30 September 2005 and 30 December 2005

The day after 6 months preceding the accounting reference date within 2005

Accounting reference date within 2005

30 business days after period end

12E

(2)

If SUP TR 12BR (4) applies, the firm's second return must be provided as follows:

Accounting reference date

Reporting period starts

Reporting period ends

Return to be provided

Between 30 June 2005 and 29 September 2005

the day following the accounting reference date within 2005

6 months after the accounting reference date within 2005

30 business days after period end
(Note 1)

12F

SUP 16.7.77 R

A mortgage administrator or mortgage lender must submit an annual report and audited accounts annually, 3 months after the firm's accounting reference date

31 October 2004 - 31 March 2005

1 April 2005

12I

SUP 16.7.54 R

Until 6 September 2006, an authorised professional firm will not contravene SUP 16.7.54 R if it submits to the FSA the annual questionnaire that was contained in SUP 16 Annex 9R immediately prior to 6 July 2006.

6 July 2006 - 6 September 2006

6 July 2006

SUP 16.8

In Forms 1R(1) to (3) in SUP 16 Annex 6R , for any life policy promoted beforecommencement, a reference to "direct offer financial promotion" must be read as a reference to "direct offer advertisement", as defined in the rulebook of the PIA at the time the policy was promoted.

From commencement for 6 years

Commencement

SUP 16.8

SUP 16.8 does not apply to an insurer (including a friendly society) which was not a member of the PIA immediately before commencement.

From commencement for 6 years

Commencement

14A

SUP 16.11.7 R

Until 1 July 2006, a firm will not contravene SUP 16.11.7 R if it does not complete the data reporting field 'Advice at the point of sale' (see SUP 16 Annex 21).

1 April 2005 - 30 June 2006

1 April 2005

14B

If SUP TR 12B R (5) applies, the firm's first return must be provided as follows:

Accounting reference date

Reporting period starts

Reporting period ends

Return to be provided

31 December 2004

1 April 2005

30 June 2005

30 business days after period end

Between 1 January 2005 and 31 March 2005

1 April 2005

6 months after the accounting reference date within 2005

30 business days after period end
(Note 2)

Between 1 April 2005 and 29 June 2005

The day following the accounting reference date within 2005

3 months after the accounting reference date within 2005

30 business days after period end
(Note 2)

Between 30 June 2005 and 29 September 2005

1 April 2005

Accounting reference date within 2005

30 business days after period end
(Note 2)

Between 30 September 2005 and 30 December 2005

The day after 6 months preceding the accounting reference date within 2005

3 months preceding the accounting reference date within 2005

30 business days after period end
(Note 3)

14C

16.10.4

A firm whose accounting reference date falls between 1 April 2005 and 30 June 2005 (inclusive) need not comply with SUP 16.10.4 R until its accounting reference date in 2006.

1 April 2005-30 June 2005

1 April 2005

14D

16.11.3

The report under SUP 16.11.3R (1) for the quarter 1 April to 30 June 2005, together with the report for the quarter 1 July to 30 September 2005 must be submitted within 20 business days after the end of the 1 July-30 September 2005 quarter.

1 April 2005-30 June 2005

1 April 2005

SUP 17

Transaction Reporting

From commencement

Commencement

(1)

A firm: to whom SUP 17 applies under SUP 17.1.1 (1)(c); and

(2)

which was authorised under the Financial Services Act 1986 immediately before commencement otherwise than through membership of the SFA;

must comply with SUP 17 as if it were:

(1)

an investment management firm, if it was a member of IMRO immediately before commencement, or

(2)

a personal investment firm, otherwise.

15A

Rules in SUP 20

Expired

15B

Transitional ruleSUP 15A

Expired

Paragraphs 1 to 15

Definitions

From commencement

Commencement

In these transitional provisions:

(1)

"pre-commencement provision" means a provision repealed or revoked by or under the Act or a rule or guidance of the firm's previous regulator, including (where the context permits) any relevant provision which it replaced before commencement; and

(2)

"substantially similar" means substantially similar in purpose and effect.

SUP 20.4.4 R (4)

The periodic fee modification set out in SUP 20.4.4 R (4) does not apply to the A.2, A.18 and A.19 activity groups until 1 April 2005.

From 31 October 2004 to 31 March 2005

1 April 2002

SUP

GEN contains some technical transitional provisions that apply throughout the Handbook and which are designed to ensure a smooth transition at commencement . These include transitional provisions relevant to record keeping and notification rules.

From commencement of the relevant provision in SUP

Various dates

Note 1 = The return need not provide data for sections A, B, C, D, E of the RMAR.

Note 2 = Sections A, B, C, D, E of the RMAR should be reported for the 3 months to the reporting end date.

Note 3 = This should only cover sections A, B, C, D, E of the RMAR

SUP TP 1.3

Transitional provisions relating to written concessions

The purpose of the transitional provisions in the following table is to carry forward existing written concessions relating to pre-commencement provisions - for example, formal waivers or modifications given by IMRO, PIA or SFA ("an SRO") and the recognised professional bodies, written concessions from the standards in the FSA's Guide to Banking Supervisory Policy, and formal written consents and determinations made by an SRO under an SRO rule.

An existing written concession is only carried forward if the pre-commencement provision to which it relates is substantially similar to a rule in the Handbook. The substantially similar test should be applied to the specific element of the rule to which the written concession relates. An existing written concession from a pre-commencement provision which is substantially similar to written guidance in the Handbook is carried forward in the same way as pre-commencement individual guidance; see transitional provision 6A (Individual guidance) in the schedule of Transitional provisions applying to the Supervision manual only.

An existing written concession is carried forward on a temporary basis only - for 12 months from commencement or, in the case of modifications relating to the Interim Prudential sourcebooks or SUP 16.6 (Compliance reports) or SUP 16.7 (Financial reports), until the relevant provisions cease to apply. A firm wishing to retain the benefit of a concession after that time will need to apply in good time for a waiver (see SUP 8 (Waiver and modification of rules)).

An existing written concession is carried forward as an amendment to the rule to which it relates. Any such amendment has effect for all purposes (including FSA enforcement action and actions for damages under section 150 of the Act).

An existing written concession is not carried forward if, and to the extent that, doing so would be inconsistent with a community obligation of the United Kingdom, in particular with the proper implementation of a directive.

These transitional provisions do not apply to rules which are continued by designation of pre-commencement provisions rather than made as new rules. Written concessions of such rules are carried forward, to similar effect, as waivers (given under section 148 of the Act) by article 8 of The Financial Services and Markets Act 2000 (Transitional Provision and Savings) (Rules) Order 2001 (SI 2001/1534). The relevant rules are:

(1)

in IPRU(BANK), 3.3.15R in chapter GN; and

(2)

in IPRU(INV), those identified as designated rules in the schedule to IPRU(INV) entitled "Powers exercised".

Definitions for these transitional provisions, additional to those in the Glossary, are provided at paragraph 4 of the table.

SUP TP 1.4

(1)

(2) Material to which the transitional provision applies

(3)

(4) Transitional provision

(5) Transitional provision: dates in force

(6) Handbook provision: coming into force

Rules in: IPRU, SUP 16.6 and SUP 16.7

(1)

A rule listed in column (2) (including evidential provisions, transitional rules and relevant defined expressions) is disapplied, or is modified in its application, to a firm:

from commencement until revoked.

Commencement

(a)

in order to produce the same effect, including any conditions, as a written concession had on a pre-commencement provision listed in paragraph 2; and

(b)

for the same period as the written concession would have lasted, if shorter than the period in column (5);

(c)

the rule is substantially similar to the pre-commencement provision in relation to the matter with which the written concession is concerned;

(d)

the written concession was current as respects the firm immediately before commencement;

(e)

there is no specific transitional rule relating to the written concession; and

(f)

the written concession has not been superseded by a waiver from the FSA.

(2)

Paragraph (1) does not have effect if, and to the extent that, it would be inconsistent with any community obligation of the United Kingdom.

Rules in: IPRU, SUP 16.6 and SUP 16.7

The pre-commencement provisions referred to in paragraph 1(1) are those contained in any of the following (including relevant defined expressions):

from commencement until revoked.

firm

(1)

the legislative provisions of the FSA as designated agency under the Financial Services Act 1986;

(2)

the rules of IMRO, PIA, SFA and the recognised professional body;

(3)

the Insurance Companies Act 1982 and relevant secondary legislation;

(4)

the Friendly Societies Act 1992, and relevant secondary legislation;

(5)

the Banking Act 1987, relevant secondary legislation and the FSA's Guide to Banking Supervisory Policy;

(6)

the Building Societies Act 1986, relevant secondary legislation and the Building Societies Commission's Prudential Notes, Guidance Notes and DCE (Dear Chief Executive) letters.

Rules in: IPRU, SUP 16.6 and SUP 16.7

Notification of relevance etc of concession
A firm which has the benefit of a written concession to which paragraph 1 applies must notify the FSA immediately if it becomes aware of any matter which is material to the relevance or appropriateness of the written concession.

from commencement until revoked.

Commencement

Rules in: IPRU, SUP 16.6 and SUP 16.7

Definitions

from commencement until revoked.

Commencement

In these transitional provisions:

(1)

"substantially similar" means substantially similar in purpose and effect; and

(2)

"written concession" means a waiver, exemption, concession, modification, consent, approval, determination or similar exercise of discretion which:

(a)

disapplied, or tended to reduce the burden of complying with, a pre-commencement provision (with or without conditions); and

(b)

was evidenced in writing.

06/07/2006

SUP Sch 1

Record keeping requirements

31/12/2004

SUP Sch 1.1

The aim of the guidance in the following table is to give the reader a quick overall view of the relevant record keeping requirements.

It is not a complete statement of those requirements and should not be relied on as if it were.

01/12/2004

SUP Sch 1.2

Handbook reference

Subject of record

Contents of record

When record must be made

Retention period

SUP 4.3.17 R (3)

Data for actuary (or actuaries appointed under SUP 4 (Actuaries)

Such data as the actuary (or actuaries) appointed under SUP 4 (Actuaries) reasonably require

Not specified

SUP 12.9.1 R, SUP 12.9.2 R

Appointed representatives

(1) Appointed representative's name

On appointment, amendment of contract or termination of contract

3 years from termination or amendment of the contract

(2) Copy of the original contract with the appointed representative and any subsequent amendments to it (including details of any restrictions placed on the activities which the appointed representative may carry on)

(3) Date and reason for terminating or amending the contract

(4) arrangements agreed with other principals under SUP 12.4.5B R

SUP 13.11

UK firm exercising EEA right

(a) the services or activities it carries on from a branch in, or provide cross border services into, another EEA State under that EEA right; and the requisite details or relevant details relating to those services or activities (if applicable)

Not specified

Three years from the earlier of the date on which:(a) it was superseded by a more up-to-date record; or

(a) the UK firm ceased to have a branch in, or carry cross border services into, any EEA State under an EEA right

SUP 13.11.1 R

Exercise of passport rights by UK firms

(1) Services or activities carried on from a branch in, or cross-border into, another EEA State under an EEA right

Not specified

Three years from earlier of:(1) record being superseded;

(2) The requisite details or relevant details (if applicable)

(2) firm ceasing to have any EEA branches or cross- border services.

SUP 16.8.23 R

Persistency reports and data reports

Records to enable the firm to monitor regularly the persistency of life policies and stakeholder pensions effected through each of its representatives and make the required reports to the FSA .

Not specified

06/12/2006

SUP Sch 2

Notification requirements

01/12/2004

SUP Sch 2.1

The aim of the guidance in the following table is to give the reader a quick overall view of the relevant requirements for notification and reporting.

It is not a complete statement of those requirements and should not be relied on as if it were.

01/01/2005

SUP Sch 4

Powers exercised

01/12/2004

SUP Sch 4.1

The following powers and related provisions in or under the Act have been exercised by the FSA to make the rules in SUP:

Section 59 (Approval for particular arrangements)

Section 118(8) (Market abuse)

Section 138 (General rule-making power)

Section 139(1) and (4) (Miscellaneous ancillary matters)

Section 141 (Insurance business rules)

Section 144 (Price stabilising rules)

Section 145 (Financial promotion rules)

Section 146 (Money laundering rules)

Section 147 (Control of information rules)

Section 149 (Evidential provisions)

Section 150(2) (Actions for damages)

Section 156 (General supplementary powers)

Section 238(5) (Restrictions on promotion)

Section 247 (Trust scheme rules)

[to follow]

Section 340 (Appointment)

Section 341 (Access to books etc.)

Regulation 6(1) of the OEIC Regulations (FSA rules)

Article 4(1) of The Financial Services and Markets Act 2000 (Transitional Provisions and Savings)(Rules) Order 2001 The Financial Services and Markets Act 2000 (Transitional Provisions and Savings)(Rules) Order 2001

31/12/2006

SUP Sch 4.2

The following powers and related provisions in or under the Act have been exercised by the FSA to give the guidance in SUP:

Section 157(1) (Guidance)

Article 11(1) of The Financial Services and Markets Act 2000 (Transitional Provisions and Savings)(Rules) Order 2001

16/05/2002

SUP Sch 4.3

The following powers and related provisions in or under the Act have been exercised by the FSA in SUP to direct or require:

Section 51 (Applications under this Part)

Section 60 (Applications for approval)

Section 148(3) (Modification or waiver of rules)

Section 182 (Notification)

Section 250(4) and (5) (Modification or waiver of rules)

Section 317 (Direction by Authority)

Paragraph 5(4) (Notice of Authority) of Schedule 4 (Treaty Rights)

Regulation 7(3) and (4) (Modification or waiver of FSA rules) of the OEIC Regulations

01/02/2006

SUP Sch 5

Rights of actions for damages

01/12/2004

SUP Sch 5.1

The table below sets out the rules in SUP contravention of which by an authorised person may be actionable under section 150of the Act (Actions for damages) by a person who suffers loss as a result of the contravention.

If a "Yes" appears in the column headed "For private person?", the rule may be actionable by a "private person" under section 150(or, in certain circumstances, his fiduciary or representative). A "Yes" in the column headed "Removed" indicates that the FSA has removed the right of action under section 150(2)of the Act. If so, a reference to the rule in which it is removed is also given.

The column headed "For other person?" indicates whether the rule is actionable by a person other than a private person (or his fiduciary or representative). If so, an indication of the type of person by whom the rule is actionable is given.

01/12/2004

SUP Sch 5.2

Right of action under section 150

Chapter/Appendix

Section/Annex

Paragraph

For private person?

Removed?

For other person?

All rules in SUP with the status letter "E"

All rules in the section

All rules in sections SUP 10.1 to SUP 10.10

All other rules in SUP

Yes

01/12/2004

SUP Sch 6

Rules that can be waived

01/12/2004

SUP Sch 6.1

The rule in SUP can be waived by the FSA under section 148 of the Act (Modification or waiver of rules), except for:

(a)

the rules in the transitional provisions relating to written concessions to the extent that those rules relate to other rules which cannot be waived;

(b)

the rules in SUP 3.8 to SUP 3.10 (Auditors) and the transitional rules relevant to those rules (and the rules in SUP 3.1 (Application) to the extent that those rules apply to an auditor rather than to a firm);

(c)

the rules in SUP 4.3 to SUP 4.5 (Actuaries) which apply to an actuary rather than to a firm (and the rules in SUP 4.1 (Application) to the extent that those rules apply to an actuary rather than to a firm);

(d)

the rules in SUP 10.2 to SUP 10.10 (Approved persons) (and the rules in SUP 10.1 (Application) to the extent that those rules apply or modify the rules in SUP 10.2 to SUP 10.10);

(e)

the following rules in SUP 13 (Exercise of passport rights by UK firms): SUP 13.5.1 R, SUP 13.5.2 R, SUP 13 Annex 1, SUP 13 Annex 2 and SUP 13 Annex 3.

01/01/2006