2.3 Statements of Principle and the Code of Practice for Approved Persons

Question 1

Approved persons at firms

Answer 1

Individuals occupying roles that are critical to the effective control and operation of the firm and its capacity to meet the requirements of authorisation. These individuals must be approved by the FCA to fulfil their role. These roles are known as Controlled Functions

Question 2

Controlled Functions 2 Types

Answer 2

Type 1 - Significant Influence Functions (SIFs) - Functions that are governing or managerial - e.g. directors or other key personnel

Type 2 - Customer Functions - Functions involving interaction with the customers of the firm, such as investment adviser or manager

Question 3

The High-Level standards block of the handbook contains

Answer 3

A sourcebook, statements of principle and code of practice for approved persons (APER) which sets out the fundamental obligations for approved persons.

Code of practice outlines conduct which doesn’t comply with the statements of principles and outlines factors that should be taken into account in determining if an approved person’s conduct complies with a statement of principle