Transitional Provisions and Schedules
TC TP 1
Transitional Provisions
TC TP 1.1
Transitional Provisions relating to designated investment business
| (1) | (2) | (3) | (4) | (5) | (6) |
| Material to which the transitional provision applies | Transitional provision | Transitional provision: dates in force | Handbook provision: coming into force | ||
| 1 | TC 2.4.1 R (1) and TC 2.4.1 R (2)TC 2.4.5 R, TC 2.7.5 R | R | (1) This transitional provision applies in respect of an employee of a firm employed at commencement if the employee had, before commencement, been assessed as competent by afirmin accordance with the applicable rules of itsprevious regulator. | From commencement | Commencement |
| (2) A firm may for the purposes of TC 2.4.1 R (1) and TC 2.4.1 R (2), TC 2.4.5 R andTC 2.7.5 R assess anemployeedescribed in (1) as competent to engage in or oversee an activity, or act as supervisor, (without the assessment required byTC 2.4.5 R (1)orTC 2.7.5 R (2) and without requiring theemployeeto pass an approved examination underTC 2.4.5 R (2)or TC 2.7.5 (1)), but only if the activity or role for thatemployeeaftercommencementis the same or substantially the same as that in respect of which theemployeehad been assessed as competent beforecommencement. | |||||
| (3) If a firm has assessed an employee as competent under (1) and (2), any other firm which subsequently employs the individual may also assess him as competent on the same basis provided that: | |||||
| (a) the activity which the employee engages in or oversees (or the role of the supervisor) continues to be the same, or substantially the same, as that in respect of which the employee had been previously assessed as competent; and | |||||
| (b) the individual has not experienced any significant break of employment since the previous assessment. | |||||
| 2 | TC 2.4.1 R (1) and TC 2.4.1 R (2), TC 2.4.5 R (2) | R | (1) This transitional provision applies to a firm which at commencement employed individuals who engage in or oversee an activity but which was not, in respect of those employees, required by the rules of itsprevious regulatorto comply with any specific training and competence requirements. | From commencement for 12 months | commencement |
| (2) A firm in (1) may, during the 12-month period beginning at commencement, assess anemployeeas competent (without requiring the individual to pass an approved examination underTC 2.4.5 R (2), but with the assessment required byTC 2.4.5 R (1)) but only in respect of the activities which the individual was able to engage in or oversee beforecommencement. | From commencement for 12 months | commencement | |||
| (3) If a firm has assessed an employee as competent under (1) and (2), any other firm which subsequently employs the individual may also assess that individual as competent on the same basis provided that: | |||||
| (a) the activity which the employee engages in or oversees continues to be the same, or substantially the same, as that in respect of which the employee had been previously assessed as competent; and | |||||
| (b) the individual has not experienced any significant break of employment since the previous assessment. | |||||
| 3 | Paragraph 2 above | G | Firms are reminded that they should make and retain records of: | From commencement | commencement |
| (a) the criteria applied in assessing competence; and | |||||
| (b) how and when the competence decision was arrived at. | |||||
| 4 | TC 2.5.1 R (1) and TC 2.5.1 R (2) | R | (1) A firm which, immediately before commencement, was required to comply with specific training and competence requirements imposed by itsprevious regulator, may, in respect of the individuals employed beforecommencement, comply with the requirements ofTC 2.5.1 R (1) and TC 2.5.1 R (2)by ensuring that those individuals pass the appropriate examinations within the time limits imposed by itsprevious regulator. | From commencement | commencement |
| 5 | TC 2 | R | (1) TC 2 does not apply to an ex-section 43 firm in respect of activities for which it would have been an exempted person under section 43 of The Financial Services Act 1986 before commencement. | From commencement for 48 months | commencement |
| 6 | [not in use] | ||||
| G |
General
transitional provisions
GEN contains some technical transitional provisions that apply throughout the Handbook and which are designed to ensure a smooth transition at commencement. These include transitional provisions relevant to record keeping. | From commencement | commencement | ||
| TC | G |
Pre-commencement
written concessions
SUP contains transitional provisions which carry forward written concessions relating to pre-commencement provisions. | From commencement for 12 months | commencement | |
| Rules and guidance in TC referring to "customer" or "private customer" | G |
Client
classification
COB contains some transitional provisions relating to the treatment of clients classified by ex-SRO firms and ex-section 43 firms before commencement. | |||
| 7 | TC 2.4.1 R (1) and TC 2.4.1 R (2), TC 2.4.5 R, TC 2.7.5 R | R | (1) This transitional provision applies in respect of an employee of a firm employed at 31 October 2004 to engage in or supervise the activities referred to at TC 2.1.4 R 1(ha), if the employee has been assessed by the firm as competent to engage in or supervise the activities specified at TC 2.1.4 R 1(f) and those activities involve selling contracts of insurance which after 30 October 2004 would be long-term care insurance contracts, and that assessment is current as at 30 October 2004. | From 31 October 2004 to 30 October 2006 | 31 October 2004 |
| (2) A firm may for the purposes of TC 2.4.1 R (1) and TC 2.4.1 R (2), TC 2.4.5 R and TC 2.7.5 R assess an employee described in (1) as competent to engage in or supervise the activities referred to at TC 2.1.4 R 1(ha), without requiring the employee to pass an appropriate examination in long-term care insurance under TC 2.4.5 R or TC 2.7.5 R (1), but only if the activity or role for that employee after 30 October 2004 is the same or substantially the same as that in respect of which the employee had been assessed as competent at 30 October 2004. | |||||
| (3)
If a firm has
assessed an employee as
competent under (1) and (2), any other firm which
subsequently employs the individual may also assess him as competent on the
same basis provided that: (a) the activity which the employee engages in or supervises continues to be the same, or substantially the same, as that in respect of which the employee had been previously assessed as competent; and (b) the individual has not experienced any significant break of relevant employment as described in (a) since the previous assessment. | |||||
| 8 | Paragraph 7 above | G | Until
30 October 2006, a firm may
rely on paragraph 7 to assess as competent an employee who advises on or supervises those
advising on long-term
care insurance contracts, if that employee had been assessed by the firm as competent at 30
October 2004 to advise or supervise those advising on investments which would be, after 30 October
2004, long-term care insurance
contracts, and the activity or role of that employee after 30 October 2004 remains the
same or substantially the same as it was prior to that date. After 30 October 2006 a firm may not rely on paragraph 7 to assess an employee as competent: the employee must be assessed as competent and must have passed an appropriate examination on long-term care insurance if they are to advise on or supervise advising on long-term care insurance contracts. | From 31 October 2004 to 30 October 2006 | 31 October 2004 |
| 9 | Paragraph 7 above | G | A firm which relies on paragraph 7 of this table in establishing the competence of an individual advising on or supervising those advising on long-term care insurance contracts should have regard to TC 2.6. In particular, a firm should keep under review the status of an employee deemed competent under paragraph 7 and consider whether an employee may no longer be competent to advise or supervise advising on long-term care insurance contracts (for example in the light of repeated failures to pass an appropriate exam). | From 31 October 2004 to 30 October 2006 | 31 October 2004 |
TC TP 1.2
Transitional provisions relating to regulated mortgage contracts (including regulated lifetime mortgage contracts) for individuals employed at 31 October 2004
| (1) | (2) | (3) | (4) | (5) | (6) |
| Material provision to which transitional provision applies | Transitional provision | Transitional provision: dates in force | Handbook provision: coming into force | ||
| 1. | TC 2 | Competent
employees (mortgages including lifetime mortgages) (1) This transitional provision applies: (a) in relation to regulated mortgage contracts including regulated lifetime mortgage contracts; and (b) in respect of an individual employed by a firm at 31 October 2004, if that individual had before that date been assessed as competent by the firm in accordance with the rules of the Mortgage Code Compliance Board applying immediately before 31 October 2004. (2) The firm in 1(b) will not contravene any of the provisions in TC 2.4.5 R provided that: (a) the activity which the individual engages in or oversees continues to be the same, or substantially the same as that immediately before 31 October 2004; and (b) the individual has not experienced any significant break of employment since the previous assessment. (3) Any other firm which subsequently employs the individual in 1(b) will not contravene TC 2.4.5 R (2) provided that: (a) the conditions in 2(a) and (b) are met; and (b) the firm assesses the individual to be competent in accordance with TC 2.4.5 R (1). | From 31 October 2004 | Apply in relation to regulated mortgage contracts from 31 October 2004 | |
- 01/12/2004
TC Sch 1
Record keeping requirements
- 01/12/2004
TC Sch 1.1
See Notes
| The aim of the guidance in the following table is to give the reader a quick over-all view of the relevant record keeping requirements. |
- 31/10/2004
TC Sch 1.2
See Notes
| It is not a complete statement of those requirements and should not be relied on as if it were. |
- 31/10/2004
TC Sch 1.3
See Notes
| In the table, "PTS" means pension transfer specialist. |
- 31/10/2004
TC Sch 1.4
See Notes
Table: Record keeping requirements
| Handbook reference | Subject of record | Contents of record | When record must be made | Retention period |
| TC 2.4.9 G | Attaining Competence | Data on competence | On a continuing basis | For 3 years only after an employee ceases to engage in or oversee an activity or for PTS indefinite |
| TC 2.5.1 R | Appropriate examinations | Examination time limits | When employee begins in the activity | For 3 years only after an employee ceases to engage in or oversee an activity or for PTS indefinite |
| TC 2.5.2 G | Appropriate examinations | Examination passes and dates and other relevant data such as periods of absence | Duration of time limits for that activity | For 3 years only after an employee ceases to engage in or oversee an activity or for PTS indefinite |
| TC 2.5.6G (1) | Appropriate examinations - regulatory module only | Criteria for application of TC 2.5.5 R to the employee | At the time of the application of the rule | For 3 years only after an employee ceases to engage in or oversee an activity or for PTS indefinite |
| TC 2.5.6G (2) | Appropriate examinations | Criteria for application of TC 2.5.5A R to the employee | At the time of the application of the rule | For 3 years only after an employee ceases to engage in or oversee an activity or for PTS indefinite |
| TC 2.6.4 G | Maintaining Competence | Criteria for and application of assessment | On a continuing basis after competence | For 3 years only after an employee ceases to engage in or oversee an activity or for PTS indefinite |
| TC 2.7.6 G | Supervising and monitoring | Criteria in deciding level of supervision and how it is carried out | When the employee begins in the activity and on an ongoing basis | For 3 years only after an employee ceases to engage in or oversee an activity or for PTS indefinite |
| TC 2.8.1 R (1) | Compliance with sourcebook | Data on competence, relevant to compliance with the sourcebook | When the employee begins in the activity and on a continuing basis | For 3 years only after an employee ceases to engage in or oversee an activity or for PTS indefinite |
- 31/10/2004
TC Sch 2
Notification requirements
- 01/12/2004
TC Sch 2.1
See Notes
| There are no notification or reporting requirements in TC. |
- 01/12/2004
TC Sch 3
Fees and other required payments
- 01/12/2004
TC Sch 3.1
See Notes
| There are no requirements for fees or other payments in TC. |
- 01/12/2004
TC Sch 4
Powers exercised
- 01/12/2004
TC Sch 4.1
See Notes
- 01/12/2004
TC Sch 4.2
See Notes
- 01/12/2004
TC Sch 5
Rights of action for damages
- 01/12/2004
TC Sch 5.1
See Notes
| The table below sets out the rules in TC contravention of which by an authorised person may be actionable under section 150 of the Act (Actions for damages) by a person who suffers loss as a result of the contravention. |
- 01/12/2004
TC Sch 5.2
See Notes
| If a "Yes" appears in the column headed "For private person?", the rule may be actionable by a "private person" under section 150 (or, in certain circumstances, his fiduciary or representative). A "Yes" in the column headed "Removed" indicates that the FSA has removed the right of action under section 150(2) of the Act. If so, a reference to the rule in which it is removed is also given. |
- 01/12/2004
TC Sch 5.3
See Notes
| The column headed "For other person?" indicates whether the rule is actionable by a person other than a private person (or his fiduciary or representative). If so, an indication of the type of person by whom the rule is actionable is given. |
- 01/12/2004
TC Sch 5.4
See Notes
Table: Actions for damages: Training and Competence sourcebook
| Right of action under section 150 | |||||
| Chapter/Appendix | Section/Annex | Paragraph | For private person | Removed | For other person |
| Rules in TC 2 | No | Yes TC 2.1.5 R | No | ||
- 01/12/2004
TC Sch 6
Rules that can be waived
- 01/12/2004