Statutory status disclosure

Part

GEN General Provisions sourcebook

Chapter

Statutory status disclosure

Printed on: 06/11/2024

Rulebook at: 04/10/2013

GEN 4

Statutory status disclosure

GEN 4.1

Application

31/10/2008

Who? What?

GEN 4.1.1

This chapter applies to every firm and with respect to every regulated activity, except that:

(1) for an incoming ECA provider, this chapter does not apply when the firm is acting as such;
(2) for an incoming EEA firm which has permission only for cross-border services and which does not carry on regulated activities in the United Kingdom, this chapter does not apply;
(3) for an incoming firm not falling under (1) or (2), this chapter does not apply to the extent that the firm is subject to equivalent rules imposed by its Home State;
(4) for a UCITS qualifier, this chapter does not apply; and
(5) only GEN 4.5 (Statements about authorisation and regulation by the appropriate regulator) applies in relation to MiFID or equivalent third country business and only where that MiFID or equivalent third country business is not business falling within paragraph 2 (Transactions between an MTF operator and its users), 3 (Transactions concluded on an MTF) or 4 (Transactions concluded on a regulated market) of Part 1 of COBS 1 Annex 1.

01/04/2013

Where?

GEN 4.1.2

GEN 4.3 (Letter disclosure) applies in relation to activities carried on from an establishment maintained by the firm (or by its appointed representative) in the United Kingdom, subject to GEN 4.3.4 R (Exception: insurers).

01/04/2013

GEN 4.1.3

GEN 4.4 (Business for private customers from non-UK offices) applies in connection with a regulated activity carried on from an establishment of the firm (or its appointed representative) that is not in the United Kingdom.

01/04/2013

GEN 4.1.4

GEN 4.5 (Statements about authorisation and regulation by the appropriate regulator) applies in relation to activities carried on from an establishment maintained by the firm (or by its appointed representative) in the United Kingdom, provided that, in the case of the MiFID business of an EEA MiFID investment firm or the activities of an EEA UCITS management company, it only applies to business conducted within the territory of the United Kingdom.

01/04/2013

GEN 4.2

Purpose

01/12/2004

GEN 4.2.1

This chapter requires the provision of appropriate minimum information about the identity of the regulator that authorised a firm. It also governs the way in which a firm may describe its regulation by the appropriate regulator.

01/04/2013

GEN 4.2.1C

This chapter assists in the achievement the PRA's general objective to ensure the safety and soundness of firms.

01/04/2013

GEN 4.3

Letter disclosure

01/12/2004

Disclosure in letters to retail clients

GEN 4.3.1

A firm must take reasonable care to ensure that every letter (or electronic equivalent) which it or its employees send to a retail client, with a view to or in connection with the firm carrying on a regulated activity, includes the disclosure in GEN 4 Annex 1 (firms that are not PRA-authorised persons) or GEN 4 Annex 1AR (PRA-authorised persons) as applicable.

01/04/2013

GEN 4.3.1A

Where a letter covers both activities to which this section applies and activities to which this section does not apply, the firm should comply with the rules in this chapter in relation to the business to which it applies.

01/04/2013

GEN 4.3.2B

For a UK domestic firm that is a PRA-authorised person, the required disclosure in GEN 4 Annex 1AR is "Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority".

04/10/2013

GEN 4.3.3

(1) GEN 4.3.1 R (Disclosure in letters to retail clients) covers letters delivered by hand, sent by post and sent by fax and also electronic mail, but not text messages, account statements, business cards or compliment slips (used as such).
(2) GEN 4.3.1 R (Disclosure in letters to retail clients) applies in relation to letters sent by any of the firm's employees, which includes its appointed representatives and their employees.
(3) Firms are likely to find it convenient to include the required disclosure in their letterhead.

01/04/2013

Exception: insurers

GEN 4.3.4

GEN 4.3.1 R (Disclosure in letters to retail clients) does not apply in relation to:

(1) general insurance business if:

(a) the State of the risk is an EEA State other than the United Kingdom; or
(b) the State of the risk is outside the EEA and the client is not in the United Kingdom when the contract of insurance is entered into; or

(2) long-term insurance business if:

(a) the client is habitually resident in an EEA State other than the United Kingdom; or
(b) the client is habitually resident outside the EEA and is not present in the United Kingdom when the contract of insurance is entered into.

01/04/2013

GEN 4.4

Business for retail clients from non-UK offices

01/11/2007

GEN 4.4.1

(1) If, in any communication:

(a) made to:

(i) (in relation to a non-investment insurance contract) a consumer;
(ii) (in relation to a home finance transaction) a customer; or
(iii) (in all other cases) a retail client; and

(b) in connection with a regulated activity carried on from an establishment of the firm (or its appointed representative) that is not in the United Kingdom;

the firm indicates that it is an authorised person, it must also, where relevant, and with equal prominence, give the information in (2) in writing.
(2) The information required is that in some or all respects the regulatory system applying will be different from that of the United Kingdom. The firm may also indicate the protections and complaints or compensation arrangements available under another relevant system of regulation.
(3) A firm need not provide the information required by (1) if it has already provided it in writing to the customer to whom the communication is made.

01/04/2013

GEN 4.5

Statements about authorisation and regulation by the appropriate regulator

01/04/2013

Application

GEN 4.5.1

This section applies to a firm:

(1) communicating with a customer; or
(2) communicating or approving a financial promotion other than:

(a) a financial promotion that would benefit from an exemption in the Financial Promotion Order if it were communicated by an unauthorised person;
(b) a promotion of an unregulated collective investment scheme that would breach section 238(1) of the Act if made by an authorised person (firms may not communicate or approve such promotions).

01/04/2013

GEN 4.5.2

GEN 4.5.1R (1) does not apply to a firm when communicating with an eligible counterparty.

01/04/2013

The duty

GEN 4.5.3A

A firm must not indicate or imply that it is authorised by the PRA in respect of business for which it is not so authorised.

01/04/2013

GEN 4.5.4A

A firm must not indicate or imply that it is regulated or otherwise supervised by the PRA in respect of business for which it is not regulated by the PRA.

01/04/2013

GEN 4.5.5

SUP 13A Annex 1 provides guidance on the application of the Handbook to an incoming EEA firm.

01/04/2013

GEN 4.5.6

(1) Neither an incoming EEA firm nor an incoming Treaty firm is authorised by the FCA or PRA when acting as such.
(2) It is likely to be misleading for a firm that is not authorised by the FCA or PRA to state or imply that it is so authorised. It is also likely to be misleading for a firm to state or imply that a client will have recourse to the Financial Ombudsman Service or the FSCS where this is not the case.
(3) [deleted]

01/04/2013

GEN 4 Annex 1A

Statutory status disclosure (PRA-authorised persons)

01/04/2013

This rule applies to firms that are PRA-authorised persons:

Type of firm

Required disclosure (Note 5)

(1)

UK domestic firm

"Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority"
(Note 1)

(2)

overseas firm (which is not an incoming firm)

"[Authorised and regulated by [name of the overseas regulator of the overseas firm in the jurisdiction of that overseas firm's registered office (or, if it has no registered office, its head office)]]. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request."
(Notes 1, 2, 3, and 3a)

(3)

Incoming firm without a top-up permission

(a) "Authorised by [name of Home State regulator]" or
(b) "Authorised by [name of Home State regulator] and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from us on request"
(Notes 1, 2, 2a, 2b and 3)

(4)

Incoming firm with a top-up permission

"Authorised by [name of Home State regulator] and the Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available from us on request"
(Notes 1, 2, 2b and 3)

(5)

Appointed representative of a firm

"[Name of appointed representative] is an appointed representative of [name of firm] which is [then continue with the required disclosure of the firm]"
(Note 4)

(6)

Society of Lloyd's

"Authorised under the Financial Services and Markets Act 2000"

Note 1 = A firm must use the formulation "Financial Conduct Authority" or "Prudential Regulation Authority" and not the abbreviated formulation "FCA" or "PRA" respectively.
Note 2 = An incoming firm or overseas firm is free to translate the name of its Home State regulator or overseas regulator into English if it wishes. In doing so, it must ensure that the State in which the regulator is based is clear.
Note 2a = An incoming firm without a top-up permission may make either disclosure (a) or disclosure (b) unless it otherwise indicates or implies to the customer that it is regulated or supervised by the FCA or PRA, in which case it must make disclosure (b).
Note 2b = An incoming EEA firm exercising establishment rights in the UK under the Banking Consolidation Directive, which do not include the activity of acceptance of deposits and other repayable funds, will be subject to branch liquidity and other supervision by the FCA.
Note 3 = If a firm offers to make details about the extent of its authorisation by the PRA or regulation by the FCA or PRA available on request and a customer requests such details, it must provide those details in a way that is clear, fair and not misleading.
Note 3a = An overseas firm that is not an incoming firm is only required to disclose its authorisation and/or regulated by an overseas regulator if it is so authorised and/or regulated.
Note 4 = If the appointed representative has more than one principal, the disclosure must relate to the principal or principals responsible for the regulated activity or activities concerned. The required disclosure of the firm is that which would apply were the firm to make the disclosure under the rules applicable to the firm.
Note 5 = Any firm listed in this table is permitted to add words to the relevant required disclosure statement but only if the firm has taken reasonable steps to satisfy itself that the presentation of its statutory status will, as a consequence, be fair, clear and not misleading and be likely to be understood by the average member of the group to whom it is directed or by whom it is likely to be received.

01/04/2013