Part V Performance of Regulated Activities

Approval

59 Approval for particular arrangements.

(1)

An authorised person (“A”) must take reasonable care to ensure that no person performs a controlled function under an arrangement entered into by A in relation to the carrying on by A of a regulated activity, unless F1that person is acting in accordance with an approval given by the appropriate regulator under this section.

(2)

An authorised person (“A”) must take reasonable care to ensure that no person performs a controlled function under an arrangement entered into by a contractor of A in relation to the carrying on by A of a regulated activity, unless F2that person is acting in accordance with an approval given by the appropriate regulator under this section.

F3(3)

“Controlled function”—

(a)

in relation to the carrying on of a regulated activity by a PRA-authorised person, means a function of a description specified in rules made by the FCA or the PRA, and

(b)

in relation to the carrying on of a regulated activity by any other authorised person, means a function of a description specified in rules made by the FCA.

(4)

“The appropriate regulator”—

(a)

in relation to a controlled function which is of a description specified in rules made by the FCA, means the FCA, and

(b)

in relation to a controlled function which is of a description specified in rules made by the PRA, means the PRA with the consent of the FCA.

F4(5)

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F5(6)

The PRA may specify a description of function under subsection (3)(a) only if, in relation to the carrying on of a regulated activity by a PRA-authorised person, it is satisfied that the function is a senior management function as defined in section 59ZA.

F6(6A)

If the FCA is satisfied that a function of a description specified in rules made by the FCA under subsection (3)(a) or (b) is a senior management function as defined in section 59ZA, the FCA must designate the function in the rules as a senior management function.

F7(6B)

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F7(6C)

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F8(7)

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F8(7A)

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F8(7B)

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F9(7C)

A regulator may not exercise the power in subsection (3) so as to provide for a function to be a controlled function in relation to the carrying on of the regulated activity of managing an AIF by an AIFM which—

(a)

is also an AIF;

(b)

does not manage any AIF other than itself;

(c)

is a body corporate; and

(d)

is not a collective investment scheme.

F10(8)

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F11(9)

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(10)

“Arrangement”—

(a)

means any kind of arrangement for the performance of a function of A which is entered into by A or any contractor of his with another person; and

(b)

includes, in particular, that other person’s appointment to an office, his becoming a partner or his employment (whether under a contract of service or otherwise).

F12(11)

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