GEN 2
Interpreting the Handbook
GEN 2.1
Introduction
- 06/07/2006
Application
GEN 2.1.2
See Notes
- 01/04/2013
The Reader's Guide
GEN 2.1.10
See Notes
- 01/04/2013
GEN 2.2
Interpreting the Handbook
- 01/12/2004
Purposive interpretation
GEN 2.2.1
See Notes
Every provision in the Handbook must be interpreted in the light of its purpose.
- 01/04/2013
GEN 2.2.2
See Notes
The purpose of any provision in the Handbook is to be gathered first and foremost from the text of the provision in question and its context among other relevant provisions. The guidance given on the purpose of a provision is intended as an explanation to assist readers of the Handbook. As such, guidance may assist the reader in assessing the purpose of the provision, but it should not be taken as a complete or definitive explanation of a provision's purpose.
- 01/04/2013
Evidential provisions
GEN 2.2.3
See Notes
- 01/04/2013
GEN 2.2.4
See Notes
- (1) The rules to which section 138C of the Act applies ("evidential provisions") are identified in the Handbook by the status letter "E" in the margin or heading.
- (2) Other provisions in the Handbook, although also identified by the status letter "E" in the margin or heading, are actually not rules but provisions in codes and GEN 2.2.3 R does not apply to them. These code provisions are those provisions in the Code of Practice for Approved Persons (APER 3 and APER 4) and the Code of Market Conduct (MAR 1) with the status letter "E".
- 01/04/2013
GEN 2.2.5
See Notes
Chapter 6 of the Reader's Guide contains an explanation of the significance of the status letters R, E, G, D, UK, EU, P and C, and includes further information on
Handbook provisions, including
evidential provisions.
- 01/04/2013
Use of defined expressions
GEN 2.2.6
See Notes
Expressions with defined meanings appear in italics in the Handbook, unless otherwise stated in individual sourcebooks or manuals.
- 01/04/2013
GEN 2.2.7
See Notes
- 01/04/2013
GEN 2.2.8
See Notes
Examples of related expressions are:
- (1) "advice on investments" and "advise on investments", which should be interpreted by reference to "advising on investments";
- (2) "closely linked", which should be interpreted by reference to "close links";
- (3) "controls" and "controlled", which should be interpreted by reference to "control"; and
- (4) "effect", as for example in "effect a life policy", which should be interpreted by reference to "effecting contracts of insurance".
- 01/04/2013
GEN 2.2.9
See Notes
Unless the context otherwise requires or unless otherwise stated in a particular sourcebook or manual, where italics have not been used, an expression bears its natural meaning (subject to the Interpretation Act 1978; see GEN 2.2.11 R to GEN 2.2.12 G).
- 01/04/2013
GEN 2.2.10
See Notes
- 01/04/2013
Application of the Interpretation Act 1978
GEN 2.2.11
See Notes
The Interpretation Act 1978 applies to the Handbook.
- 01/04/2013
GEN 2.2.12
See Notes
The application of the Interpretation Act 1978 to the Handbook has the effect, in particular, that:
- (1) expressions in the Handbook used in the Act have the meanings which they bear in the Act, unless the contrary intention appears;
- (2) where reference is made in the Handbook to an enactment, it is a reference to that enactment as amended, and includes a reference to that provision as extended or applied by or under any other enactment, unless the contrary intention appears; and
- (3) unless the contrary intention appears:
- 01/04/2013
Civil partnership - references to stepchildren etc
GEN 2.2.12A
See Notes
Any reference in a provision of the Handbook made before 5 December 2005 to a stepchild, step-parent, stepdaughter, stepson, stepbrother or stepsister is to be interpreted in accordance with section 246 of the Civil Partnership Act 2004.
- 01/04/2013
GEN 2.2.12B
See Notes
GEN 2.2.12A R and sections 246 and 247 of the Civil Partnership Act 2004 amend each reference in the Handbook to a stepchild, step-parent and certain related expressions to take account of civil partnerships. As a result a reference (for example) to a stepchild of a person (A) includes a reference to the child of the civil partner of A where that child is not A's child.
- 01/04/2013
Cross-references in the Handbook
GEN 2.2.13
See Notes
- 01/04/2013
GEN 2.2.13A
See Notes
Unless a contrary intention appears, to the extent that a provision made by the appropriate regulator ('the referring provision') contains a cross-reference to another provision that is not made by that regulator ('the referred provision'), the referred provision is to be taken to have been made by the appropriate regulator to the extent necessary to make the referring provision function with the full effect indicated by the reference.
- 01/04/2013
References to writing
GEN 2.2.14
See Notes
If a provision in the Handbook refers to a communication, notice, agreement or other document "in writing" then, unless the contrary intention appears, it means in legible form and capable of being reproduced on paper, irrespective of the medium used. Expressions related to writing must be interpreted accordingly.
- 01/04/2013
GEN 2.2.15
See Notes
GEN 2.2.14 R means that, for example, electronic media may be used to make communications which are required by a provision of the Handbook to be "in writing", unless a contrary intention appears, or the use of electronic media would contravene some other requirement. GEN 2.2.14 R does not, however, affect any other legal requirement which may apply in relation to the form or manner of executing a document or agreement.
- 01/04/2013
GEN 2.2.16
See Notes
- 01/04/2013
Activities covered by general rules
GEN 2.2.17
See Notes
A general rule (that is a rule made by the appropriate regulator under the general rule making powers) is to be interpreted as:
- (1) applying to a firm with respect to the carrying on of all regulated activities, except to the extent that a contrary intention appears; and
- (2) not applying to a firm with respect to the carrying on of unregulated activities, unless and then only to the extent that a contrary intention appears.
- 01/04/2013
Continuity of authorised partnerships and unincorporated associations
GEN 2.2.18
See Notes
- (1) If a firm, which is a partnership or unincorporated association, is dissolved, but its authorisation continues to have effect under section 32 of the Act (Partnerships and unincorporated associations) in relation to any partnership or unincorporated association which succeeds to the business of the dissolved firm, the successor partnership or unincorporated association is to be regarded as the same firm for the purposes of the Handbook unless the context otherwise requires.
- (2) [deleted]
- (3) [deleted]
- 01/04/2013
GEN 2.2.19
See Notes
In principle, it is possible to view a change of partners in a partnership, or a change in the membership of the unincorporated association, as the formation of a new partnership or association. GEN 2.2.18 R reflects section 32 of the Act (Partnerships and unincorporated associations), which provides for the continuing authorisation of partnerships and unincorporated associations following a change in partners or members if certain conditions are satisfied. GEN 2.2.18 R ensures a similar effect to section 32 in relation to the status of the partnership or unincorporated associations as a "firm" or "authorised person" for the purposes of the Handbook.
- 01/04/2013
European Economic Area (EEA)
GEN 2.2.21
See Notes
The agreement on the European Economic Area, signed at Oporto on 2 May 1992, extends certain EU legislation to those EEA States which are not Member States of the EU, namely Norway, Iceland and Liechtenstein. References in the Handbook concerning the territorial scope of EU law should therefore be read as extending throughout the EEA where the context requires.
- 01/04/2013
Treaty of Lisbon
GEN 2.2.22
See Notes
As a result of the Treaty of Lisbon, the European Union has replaced and succeeded the European Community. References in the Handbook to the European Community should therefore be interpreted as references to the European Union, where the context requires. In particular, references which are copied out directly from EU or UK legislation may contain references to the Community which should be read in conjunction with section 3 of the European Union (Amendment) Act 2008.
- 01/04/2013
Application of provisions made by both the FCA and the PRA
GEN 2.2.23
See Notes
- (1) This rule applies to Handbook provisions made by both the FCA and the PRA. It may affect their application by the FCA to PRA-authorised persons and PRA approved persons, and may affect their application by the PRA to any authorised person or approved person.
- (2) Where a Handbook provision (or part of one) goes beyond the FCA's or PRA's powers or regulatory responsibilities, it is to be interpreted as applied by that regulator to the extent of that regulator's powers and regulatory responsibilities only.
- (3) The extent of a Handbook provision is to be interpreted as cut back under GEN 2.2.23R (2) by the minimum degree necessary.
- 01/04/2013
GEN 2.2.24
See Notes
- 01/04/2013
GEN 2.2.25
See Notes
Examples of rules being interpreted as cut back by GEN 2.2.23 R include the following:
- (1) [deleted]
- (2) SYSC 6.1.1 R requires a firm to maintain adequate policies and procedures to ensure compliance with its obligations under the regulatory system; SYSC 6.1.1 R should be interpreted:
- (a) as applied by the FCA in respect of a PRA-authorised person's compliance with regulatory obligations that are the responsibility of the FCA (for example, in respect of a bank maintaining policies and procedures to ensure compliance with banking conduct requirements in BCOBS); and,
- (b) as applied by the PRA in respect of a PRA-authorised person's compliance with those regulatory obligations that are the responsibility of the PRA (for example, in respect of a bank maintaining policies and procedures to ensure compliance with financial resources requirements in the PRA Rulebook and the EU CRR).
- (3) COMP 5.2.1 R sets out types of protected claims to be covered by the FSCS. The powers of the FCA and the PRA to make this type of rule are set out in the order made under section 213(1A) of the Act. The rule must be read as applying only to the extent of those powers. For example, the PRA has no power to make COMP 5.2.1 R (3) creating protected claims in connection with protected investment business, and the FCA has no power to make COMP 5.2.1 R (1) as creating protected claims for a protected deposit. As such, those provisions are to be interpreted as not applied by the PRA and FCA, respectively.
- 01/01/2014
Transitional Provisions and Schedules
GEN TP 1
Transitional provisions
GEN TP 1.3
(3) Transitional Provisions applying to GEN only
| (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 |
| 1 | GEN 2.2.7 R | R | Expired | ||
| 2 | GEN 4.3.1 R | R | Expired | ||
| 3 | GEN 4.3.1 R | R | Expired | ||
| 4 | GEN 4.4.1 R | R | Expired | ||
| 5 | GEN 6.1 | R | GEN 6.1 does not: (1) apply to an unamended contract of insurance, first entered into on or before 24 July 2003; or (2) prohibit a firm from claiming on, or making a payment under, a contract of insurance: (a) in connection with a financial penalty imposed by the FSA pursuant to a warning notice issued before 25 July 2003; or (b) first entered into between 25 July 2003 and 31 December 2003 in respect of a financial penalty imposed by the FSA by a final notice issued on or before 31 December 2003. (For these purposes only, a contract of insurance will be regarded as unamended if: (i) it was amended on or before 24 July 2003; or (ii) it was amended after 24 July 2003, but the amendments did not affect the duration or scope of any indemnity against a financial penalty imposed by the FSA under the Act.) |
From 1 January 2004 | 1 January 2004 |
| 6 | GEN 4.3.1 R | R | Expired | ||
| 7 | GEN 4.3.1 R | G | Expired | ||
| 9 | GEN 5 Annex 1 G | G | [expired] | ||
| 10 | GEN 4.3.1 R | R | [expired] | ||
| 11 | GEN 4.5 | R | [expired] |
||
| 12 | GEN 4 Annex 1 | R | [expired] |
||
| 13 | GEN 4.3.1 RR, GEN 4 Annex 1 and GEN 4 Annex 1A | R | [expired] | ||
| 14 | GEN 4.5.3 R and GEN 4.5.4 R |
R | [expired] |
GEN TP 1.3 (4) Transitional Provisions applying to GEN only
The references to "GEN 6.1" in the table above must be read as "GEN 6.1 and General Provisions 7 in the PRA Rulebook".
- 02/04/2015
GEN TP 2
Transitional Provisions applying across the FCA and PRA Handbooks
Table: 1 Transitional Provisions applying across the FCA and PRA Handbooks
| (1) | The purpose of these transitional provisions is to assist a smooth transition at cutover. They comprise various technical provisions that will apply across the whole FCA and PRA Handbooks and achieve results that most people would probably expect to apply in any event. |
| (2) | These transitional provisions consist of general transitional provisions, which apply at a high level of generality, and more specific transitional provisions in relation to record keeping and notification rules. |
| (3) | The more specific transitional provisions relating to record keeping and notification rules override the general transitional provisions. Both the general and the more specific transitional provisions do not apply if the context requires otherwise and are subject to any more specific transitional provision elsewhere in the FCA and PRA Handbooks relating to the matter. |
| (4) | Definitions for these transitional provisions, additional to those in the Glossary, are provided at paragraph 15 of the table. |
Table 2: Transitional Provisions applying across the FCA and PRA Handbooks
| (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 |
| 1 | Every provision in the FCA and PRA Handbooks, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter | R | Acts under pre-cutover provisions Anything done, or having effect as done, under or for the purposes of any pre-cutover provision has effect as if done under or for the purposes of any substantially similar provision in the FCA and PRA Handbooks. |
From cutover | Cutover |
| 2 | Paragraph 1 | G | For example, a firm may rely on action to establish the best price, taken shortly before cutover for the purposes of the FSA's best execution rule, for the purposes of compliance with the FCA's best execution rule, even if the transaction is executed after cutover. | From cutover | Cutover |
| 3 | Every provision in the FCA and PRA Handbooks, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter | R | Series of events If the application of any provision in the FCA or PRA Handbooks is dependent on the occurrence of a series of events, some of which occur before, and some of which occur after, cutover, the provision applies with respect to the events that occur after cutover. |
From cutover | Cutover |
| 4 | Paragraph 3 | G | For example, a firm which executes an aggregated order shortly before cutover must comply with COBS 11.3.8 R (Requirement for fair allocation) if the allocation occurs after cutover. | From cutover | Cutover |
| 5 | Every provision in the FCA and PRA Handbooks, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter | R | Deemed references to pre-cutover provisions Any reference (express or implied) in a provision in the FCA or PRA Handbooks to a provision of or made under the Act is to be read (so far as the context permits and according to the context) as being or including, in relation to times, circumstances and purposes before cutover, a reference to any substantially similar pre-cutover provision. |
From cutover | Cutover |
| 6 | Paragraph 5 | G | For example, SUP 11.6.4 R requires a firm authorised by the FCA to notify the FCA when a change in control, previously notified under SUP 11.4.2 R, has taken place. Such a firm must notify a change in control that takes place after cutover, even if previously notified under SUP 11.4.2 R as made by the FSA (and SUP 11.6.4 R is to be read as referring to that pre-cutover provision). | From cutover | Cutover |
| 7 | Every provision in the FCA and PRA Handbooks, unless the context otherwise requires and subject to any more specific transitional provision relating to the matter | R | Time starting before cutover If, at cutover, time has begun to run for any purpose under any pre-cutover provision applicable to a firm or other person, then: (1) time will be regarded as having started to run, for the purposes of any substantially similar provision in the FCA or PRA Handbooks, when it started to run for that other purpose; and (2) the firm or other person will be relieved of its obligation to comply with the relevant pre-cutover provision if and to the extent that it complies with the substantially similar provision as extended by this transitional provision. |
From cutover | Cutover |
| 8 | Paragraph 7 | G | For example, certain firms were required to submit product sales data reports within 20 business days of the end of the quarter by SUP 16.11.3 R as made by the FSA. If the quarter end fell five days before cutover, the firms must still submit the report within 20 business days, but in accordance with SUP 16.7.8 R as made by the FCA. | From cutover | Cutover |
| 9 | Every rule in the FCA and PRA Handbooks requiring a record to be made or retained (see schedule 1), unless the context otherwise requires and subject to any more specific transitional provision relating to the matter | R | Record keeping A firm or other person will not contravene a rule in the FCA or PRA Handbooks requiring a record to be made or retained to the extent that the firm or other person: (1) made a record of the matter before cutover in accordance with the rule or with a substantially similar pre-cutover provision applicable to the firm or other person; and (2) retains that record as if the rule was in force when the record was made. |
From cutover | Cutover |
| 10 | Every rule in the FCA and PRA Handbooks requiring a record to be made or retained (see schedule 1), unless the context otherwise requires and subject to any more specific transitional provision relating to the matter | G | This transitional provision makes specific provision, in relation to record keeping, for the matters covered by paragraph 1. It is included for clarity and overrides those general transitional provisions. | From cutover | Cutover |
| 11 | Every rule in the FCA and PRA Handbooks requiring a record to be made or retained (see schedule 1), unless the context otherwise requires and subject to any more specific transitional provision relating to the matter | R | A firm or other person must retain a record in accordance with a rule in the FCA or PRA Handbooks requiring a record of that sort to be retained, if the firm or other person was required to make and retain that record before cutover under a substantially similar pre-cutover provision applicable to the firm or other person. | From cutover | Cutover |
| 12 | Paragraph 9 | G | This transitional provision makes specific provision, in relation to records, for the matters covered by paragraphs 5 and 7. It is included for clarity and overrides those general transitional provisions. | From cutover | Cutover |
| 13 | Every notification rule in the FCA and PRA Handbooks (see schedule 2), unless the context otherwise requires and subject to any more specific transitional provision relating to the matter | R | Notification A firm (or its auditor, appointed actuary or appropriate actuary) or other person will not contravene a notification rule in the FCA or PRA Handbooks to the extent that notice of the relevant matter was given to the FSA before cutover in accordance with: (1) the notification rule; or (2) a substantially similar pre-cutover provision applicable to the firm or other person. |
From cutover | Cutover |
| 14 | Paragraph 13 | G | This transitional provision makes specific provision, in relation to notifications, for the matters covered by paragraphs 1 and 3. It is included for clarity and overrides those general transitional provisions. | From cutover | Cutover |
| 15 | As paragraphs 1 to 14 | R | Definitions In these transitional provisions: (1) "pre-cutover provision" means a provision repealed or revoked by, or under, the Financial Services Act 2012 or a rule or guidance of the FSA, including (where the context permits) any relevant provision which it replaced before cutover; |
From cutover | Cutover |
| (2) "substantially similar" means substantially similar in purpose and effect; and | |||||
| (3) a reference to a "provision" in the FCA or PRA Handbooks means every type of provision, including rules, guidance, provisions in codes, and so on. | |||||
| 16 | Paragraph 17 | G | Application for provisions which are not rules The purpose of paragraph 17 is to ensure that the transitional provisions in paragraphs 1 to 8 apply throughout the FCA and PRA Handbooks. |
From cutover | Cutover |
| 17 | Statements of Principle, the Code of Practice for Approved Persons and Code of Market Conduct and directions and requirements and guidance and other provisions in the FCA Handbook and PRA Handbook (that is, provisions with the status letter "D" or "G" in the margin or heading) unless the context otherwise requires and subject to any more specific transitional provision relating to the matter | P | The provisions in paragraphs 1 to 10 apply to every person to whom the provisions referred to in column (2) apply as if the rules in those paragraphs were part of those provisions. | From cutover | Cutover |
- 01/04/2013
GEN Sch 1
Record keeping requirements
- 01/12/2004
GEN Sch 1.1
See Notes
| There are no record keeping requirements in GEN. |
- 01/04/2013
GEN Sch 2
Notification requirements
- 01/12/2004
GEN Sch 2.1
See Notes
| 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. |
- 01/04/2013
GEN Sch 2.2
See Notes
| Handbook reference | Matter to be notified | Contents of notification | Trigger event | Time allowed |
| GEN 1.3.2 R | An emergency which makes it impracticable for a firm to comply with a particular rule. | Notification of the emergency and of the steps the firm is taking and proposes to take to deal with its consequences | An emergency which makes it impracticable for a firm to comply with a particular rule. | Notification as soon as practicable |
- 01/04/2013
GEN Sch 3
Fees and other required payments
- 01/12/2004
GEN Sch 3.1
See Notes
- 01/04/2013
GEN Sch 6
Rules that can be waived
- 01/12/2004
GEN Sch 6.1B
See Notes
| As a result of section 138A of the Act (Modification or waiver of rules) the PRA has power to waive all its rules, other than rules made under section 137O (Threshold condition code). However, if the rules incorporate requirements laid down in European directives, it will not be possible for the PRA to grant a waiver that would be incompatible with the United Kingdom's responsibilities under those directives. |
- 01/04/2013
GEN Sch 6.2
See Notes
| 1 | GEN 2.1.8R is made by FOS Ltd and not by the appropriate regulator and cannot be waived by the appropriate regulator. |
| 2 | Every other rule in GEN can be waived by the appropriate regulator if, and to the extent that, the rules elsewhere in its Handbook which it modifies or to which it otherwise relates can be waived by the appropriate regulator. |
- 01/04/2013