Transitional Provisions and Schedules

Part

GEN General Provisions sourcebook

Chapter

Transitional Provisions and Schedules

Printed on: 06/11/2024

Rulebook at: 01/04/2013

Transitional Provisions and Schedules

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

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

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

Paragraph 1

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

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

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

Paragraph 3

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

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

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

Paragraph 5

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

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

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

Paragraph 7

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

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

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

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

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

Paragraph 9

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

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

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

Paragraph 13

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

As paragraphs 1 to 14

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.

Paragraph 17

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

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

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

There are no record keeping requirements in GEN.

01/04/2013

GEN Sch 2

Notification requirements

01/12/2004

GEN 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.

01/04/2013

GEN Sch 2.2

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

There are no requirements for fees or other payments in GEN. FEES 2 (General Provisions) contains general provisions relating to the payment of fees.

01/04/2013

GEN Sch 6

Rules that can be waived

01/12/2004

GEN Sch 6.1B

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

GEN 2.1.8R is made by FOS Ltd and not by the appropriate regulator and cannot be waived by the appropriate regulator.

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