The FSA has published a web page stating that it has issued a modification by consent for overseas firms with UK branches regarding the period from 6 August to 6 October 2009.  

The modification captures all overseas firms that have UK branches, however, this rule does not apply to EEA firms with passported provisions into the UK.  

In December 2008 the FSA published Consultation Paper 08/25: The approved persons regime - significant influence function review (CP08/25). In CP08/25 the FSA clarified its expectations of those within regulated firms who perform a ‘significant influence’ function. Following consultation it was decided that the affected firms would be required to register individuals performing CF1 (director), CF2 (non-executive director) as well as CF28 (systems and controls function) in certain circumstances. This was done through a change to SUP 10.1.7R. The rules were published in Policy Statement 09/14: The approved persons regime - significant influence function review (PS09/14) and came into force on 6 August 2009.  

The FSA intended to give firms 6 months to implement these changes. This should have been done through a transitional provision (TP), which would have effectively delayed the impact of the changes for 6 months. However, the FSA unintentionally omitted the TP for SUP 10.1.7R.  

The FSA plans to implement a further amendment to the rules on 6 October 2009 which will effectively reinstate the intended TP for SUP 10.1.7R. The modification by consent is required, until the FSA implements the TP into the rules to avoid firms unintentionally breaching SUP 10.1.7R.  

The webpage states that:  

  • All firms captured by SUP 10.1.7R will be subject to the modified rules in the direction (a link to the direction is set out on the webpage). Firms do not need to notify the FSA if they wish to take advantage of the modification.
  • Firms should print a copy of the direction and keep it with their records.
  • Should a firm wish to comply with the unmodified rule, it must email centralwaiversteam@fsa.gov.uk by 6 August 2009; including the name of the firm and its FRN. If a firm does this it will then be required to comply with the unmodified SUP 10.1.7R.

View Modification by consent of SUP 10.1.7R(1), (2) & (5) - available to overseas firms with UK branches, 5 August 2009