Captured statutory text (L5)
1
In Part 18 of FSMA 2000 (recognised investment exchanges, clearing houses and CSDs), before Chapter 3B insert—
CHAPTER 2APerformance of functions of recognised bodiesRelevant recognised bodiesRecognised bodies to which this Chapter applies(309A)
(1)The Treasury may by regulations specify as a “relevant recognised body” for the purposes of this Chapter a type of recognised body mentioned in subsection (2).
(2)The types of recognised bodies are—
(a)recognised investment exchanges;
(b)recognised central counterparties;
(c)recognised CSDs.
(3)Before making regulations under subsection (1), the Treasury—
(a)must consult the FCA if it proposes to specify recognised investment exchanges (or recognised investment exchanges of a specified description);
(b)must consult the Bank of England if it proposes to specify recognised central counterparties or recognised CSDs (or recognised central counterparties or recognised CSDs of a specified description);
(c)in any case, must consult such persons as appear to it to be representative of interests likely to be affected by the application of this Chapter to the types, or descriptions, of bodies it proposes to specify.
(4)In this Chapter, references to “the appropriate regulator” are to be read in accordance with section 285A (accordingly, the appropriate regulator in relation to a recognised investment exchange is the FCA, and in any other case is the Bank of England).
(5)Nothing in this Chapter applies to overseas investment exchanges.
ProhibitionPart 18 prohibition orders(309B)
(1)This section applies if it appears to the appropriate regulator that an individual is not a fit and proper person to perform functions in relation to an activity carried on by a relevant recognised body.
(2)The appropriate regulator may make an order (a “Part 18 prohibition order”) prohibiting the individual from performing a specified function, any function falling within a specified description or any function.
(3)A Part 18 prohibition order may relate to—
(a)a specified activity, any activity falling within a specified description or all activities (but see subsection (5));
(b)all persons falling within subsection (4), or a particular paragraph of that subsection, or all persons within a specified class of person falling within a particular paragraph of that subsection.
(4)A person falls within this subsection if the person is—
(a)a relevant recognised body (whether or not the appropriate regulator making the order is the appropriate regulator in relation to relevant recognised bodies of that type),
(b)an authorised person,
(c)an exempt person (other than a relevant recognised body), or
(d)a person to whom, as a result of Part 20, the general prohibition does not apply in relation to a regulated activity.
(5)If a Part 18 prohibition order makes provision in relation to a person or persons falling within subsection (4)(b), (c) or (d), subsection (3)(a) applies in relation to such provision as if references to an activity or activities were to a regulated activity or regulated activities.
(6)In this section, “specified” means specified in the Part 18 prohibition order.
Procedure for making Part 18 prohibition orders(309C)
(1)If the appropriate regulator proposes to make a Part 18 prohibition order it must—
(a)comply with such consultation requirements as may be prescribed, and
(b)give the individual to whom the order would apply a warning notice.
(2)A warning notice under subsection (1)(b) must set out the terms of the prohibition.
(3)If the appropriate regulator decides to make a Part 18 prohibition order it must give the individual to whom the order applies a decision notice.
(4)The decision notice must—
(a)name the individual to whom the Part 18 prohibition order applies, and
(b)set out the terms of the order.
(5)If the appropriate regulator decides to make a Part 18 prohibition order, the individual to whom the order applies may refer the matter to the Tribunal.
Varying and withdrawing Part 18 prohibition orders(309D)
(1)This section applies where the appropriate regulator has made a Part 18 prohibition order in relation to an individual.
(2)The appropriate regulator may vary or revoke the Part 18 prohibition order on the application of the individual.
(3)Before varying or revoking a Part 18 prohibition order, the appropriate regulator must comply with such consultation requirements as may be prescribed.
(4)On an application for the variation or revocation of a Part 18 prohibition order—
(a)if the appropriate regulator decides to grant the application, it must give the applicant written notice of its decision;
(b)if the appropriate regulator proposes to refuse the application, it must give the applicant a warning notice;
(c)if the appropriate regulator decides to refuse the application, it must give the applicant a decision notice.
(5)If the appropriate regulator gives the applicant a decision notice under subsection (4)(c), the applicant may refer the matter to the Tribunal.
Offence of breaching prohibition(309E)
(1)An individual who performs a function, or agrees to perform a function, in breach of a Part 18 prohibition order is guilty of an offence.
(2)An individual who commits an offence under this section is liable—
(a)on summary conviction in England and Wales, to a fine;
(b)on summary conviction in Scotland, to a fine not exceeding level 5 on the standard scale;
(c)on summary conviction in Northern Ireland, to a fine not exceeding level 5 on the standard scale.
(3)In proceedings for an offence under this section, it is a defence for the individual to show that the individual took all reasonable precautions and exercised all due diligence to avoid committing the offence.
Duty in relation to prohibited individuals(309F)
(1)A person (“P”) falling within section 309B(4) must take reasonable care to ensure that no function in relation to the carrying on of P’s activities is performed by an individual who is prohibited from performing that function by a Part 18 prohibition order.
(2)A contravention of subsection (1) is actionable at the suit of a private person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty.
(3)In prescribed cases, a contravention of subsection (1) which would be actionable at the suit of a private person is actionable at the suit of a person who is not a private person, subject to the defences and other incidents applying to actions for breach of statutory duty.
(4)In this section “private person” has such meaning as may be prescribed.
ApprovalRequirement for approval(309G)
(1)A relevant recognised body must take reasonable care to ensure that a person does not perform a designated senior management function in relation to the carrying on of an activity by the body, unless the person is acting in accordance with an approval given by the appropriate regulator under this section.
(2)Subsection (1) applies only in relation to a function performed under—
(a)an arrangement entered into by the relevant recognised body, or
(b)an arrangement entered into by a contractor of the relevant recognised body.
(3)“Designated senior management function” means a function of a description specified in rules made by the appropriate regulator.
(4)The appropriate regulator may specify a description of function under subsection (3) only if it is satisfied that the function is a senior management function.
(5)A function is a “senior management function” in relation to the carrying on of a relevant recognised body’s activities if—
(a)the function will require the person performing it to be responsible for managing one or more aspects of the body’s affairs, and
(b)those aspects involve, or might involve, a risk of serious consequences—
(i)for the body, or
(ii)for business or other interests in the United Kingdom.
(6)In subsection (5)(a), the reference to managing one or more aspects of a relevant recognised body’s affairs includes a reference to taking decisions, or participating in the taking of decisions, about how one or more aspects of those affairs should be carried on.
(7)In subsection (2), “arrangement”—
(a)means any kind of arrangement for the performance of a function of a relevant recognised body which is entered into by the body, or by a contractor of the body, and another person, and
(b)includes, in particular, an arrangement under which the other person is appointed to an office, becomes a partner or is employed (whether under a contract of service or otherwise).
Rules under section 309G(3): transitional provision(309H)
(1)In relation to rules made by the Bank of England or the FCA under section 309G(3), the power conferred by section 137T(c) to make transitional provision includes, in particular, power—
(a)to provide for anything done under this Chapter, or under Part 5 (performance of regulated activities), in relation to a senior management function of a particular description to be treated as having been done in relation to a senior management function of a different description;
(b)to provide for anything done under this Chapter, or under Part 5 (including any application or order made, any requirement imposed and any approval or notice given) to cease to have effect, to continue to have effect, or to continue to have effect with modifications, or subject to time limits or conditions;
(c)to provide for rules made by the regulator making the rules under section 309G(3) to apply with modifications;
(d)to make saving provision.
(2)The Treasury may by regulations make whatever incidental, consequential, transitional, supplemental or saving provision the Treasury consider appropriate in connection with the making of rules under section 309G(3).
(3)Regulations under subsection (2) may—
(a)confer functions on the Bank of England or the FCA (including the function of making rules);
(b)modify legislation (including any provision of, or made under, this Act).
(4)In subsection (3)(b)—
“legislation” means primary legislation, subordinate legislation (within the meaning of the Interpretation Act 1978) and retained direct EU legislation, but does not include rules or other instruments made by any regulator;
“modify” includes amend, repeal or revoke.
Applications for approval(309I)
(1)A relevant recognised body may apply for approval from the appropriate regulator under section 309G for a person to perform a designated senior management function in relation to the carrying on of the body’s activities.
(2)The application must be made in such manner as the appropriate regulator may direct.
(3)The application must contain—
(a)a statement setting out the aspects of the applicant’s affairs which it is intended that the person will be responsible for managing in performing the function, and
(b)such other information as the appropriate regulator may reasonably require.
(4)A statement provided under subsection (3)(a) is known as a “statement of responsibilities”.
(5)At any time after the application is received, and before it is determined, the appropriate regulator may require the applicant to provide it with such further information as it reasonably considers necessary to enable it to determine the application.
(6)The appropriate regulator may require the applicant to present information provided under this section in such form, or to verify the information in such a way, as the appropriate regulator may direct.
(7)Different directions may be given, and different requirements may be imposed, in relation to different applications or categories of application.
(8)In subsection (1), “relevant recognised body” includes—
(a)if recognised investment exchanges are a type of recognised body to which this Chapter applies, a person who has applied for recognition as such under section 287;
(b)if recognised central counterparties are a type of recognised body to which this Chapter applies, a person who has applied for recognition as such under section 288;
(c)if recognised CSDs are a type of recognised body to which this Chapter applies, a person who has applied for recognition as such under section 288A.
Vetting by relevant recognised bodies(309J)
(1)Before making an application under section 309I for approval for a person to perform a designated senior management function, a relevant recognised body must be satisfied that the person is a fit and proper person to perform the function.
(2)In deciding that question, the relevant recognised body must have regard, among other things, to whether the person, or any person who may perform a function on the person’s behalf—
(a)has obtained a specified qualification;
(b)has undergone, or is undergoing, specified training;
(c)possesses a specified level of competence;
(d)has specified personal characteristics.
(3)In subsection (2), “specified” means specified in rules made by the appropriate regulator.
(4)Before making rules for the purposes of this section, the appropriate regulator must comply with such consultation requirements as may be prescribed.
Determining applications: power to grant approval(309K)
(1)The appropriate regulator may grant an application under section 309I for approval for a person to perform a designated senior management function only if—
(a)it is satisfied that the person is a fit and proper person to perform the function, or
(b)it is satisfied that the condition in paragraph (a) will be met if the application is granted subject to one or more conditions (see subsection (3)).
(2)In determining the application, the appropriate regulator may have regard, among other things, to the matters mentioned in section 309J(2) (qualifications etc of person for whom approval sought).
(3)The appropriate regulator may, if it appears to it that it is desirable to do so in order to advance a relevant objective—
(a)grant the application subject to any conditions that it considers appropriate;
(b)grant the application so as to give approval only for a limited period.
(4)For the purposes of subsection (3), “relevant objective” means—
(a)if the appropriate regulator is the FCA, any of its operational objectives;
(b)if the appropriate regulator is the Bank of England, the Financial Stability Objective.
(5)Before granting approval under this section (whether or not subject to conditions or for a limited period), the appropriate regulator must comply with such consultation requirements as may be prescribed.
Determining applications: period for approval(309L)
(1)The appropriate regulator must, before the end of the period for consideration, determine whether—
(a)to grant an application under section 309I for approval for a person to perform a function, without imposing conditions or limiting the period for which the approval has effect, or
(b)to give a warning notice under section 309M(2).
(2)In subsection (1), “the period for consideration” means the period of 3 months beginning with the day on which the appropriate regulator receives the application.
This is subject to subsections (3) and (4).
(3)Where the application under section 309I is made by a person in reliance on section 309I(8) (applicants for recognition to be treated as relevant recognised bodies), “the period for consideration” means whichever of the following periods ends later—
(a)the period described in subsection (2), and
(b)the period within which the person’s application for recognition must be determined—
(i)in the case of an application under section 287, in accordance with section 290(1B);
(ii)in the case of an application under section 288, in accordance with Article 17(7) of the EMIR regulation;
(iii)in the case of an application under section 288A, in accordance with section 290(4A).
(4)If the appropriate regulator imposes a requirement under section 309I(5), the period described in subsection (2) stops running on the day on which the requirement is imposed but starts running again—
(a)on the day on which the required information is received by the appropriate regulator, or
(b)if the information is not provided on a single day, on the last of the days on which it is received by the appropriate regulator.
(5)An applicant may withdraw an application under section 309I, by giving written notice to the appropriate regulator, at any time before the appropriate regulator determines the application, but only with the consent of—
(a)the person in relation to whom the application is made, and
(b)the person by whom that person is to be retained to perform the function to which the application relates, if not the applicant.
Determining applications: further procedure(309M)
(1)If the appropriate regulator decides to grant an application under section 309I without imposing conditions or limiting the period for which approval is given, it must give written notice of its decision to each of the interested parties.
(2)If the appropriate regulator proposes to refuse the application, or to grant the application subject to conditions or for a limited period (or both), it must give a warning notice to each of the interested parties.
(3)If the appropriate regulator decides to refuse the application, or to grant the application subject to conditions or for a limited period (or both), it must give a decision notice to each of the interested parties.
(4)If the appropriate regulator decides to refuse the application, or to grant the application subject to conditions or for a limited period (or both), each of the interested parties may refer the matter to the Tribunal.
(5)In this section, “the interested parties”, in relation to an application under section 309I for approval for a person to perform a function, are—
(a)the applicant,
(b)the person in relation to whom the application is made, and
(c)the person by whom that person is to be retained to perform the function to which the application relates, if not the applicant.
Changes in responsibilities(309N)
(1)This section applies where, on an application made by a relevant recognised body under section 309I, the appropriate regulator has given approval for a person to perform a designated senior management function (and has not withdrawn the approval).
(2)Each time there is a notifiable change in the aspects of the relevant recognised body’s affairs which the person is responsible for managing in performing the function, the relevant recognised body must provide the appropriate regulator with a revised statement of responsibilities (see section 309I(4)).
(3)Whether a change is “notifiable” is to be determined by the relevant recognised body in accordance with rules made by the appropriate regulator.
(4)The appropriate regulator may require the relevant recognised body to present information provided under this section in such form, or to verify the information in such a way, as the appropriate regulator may direct.
Withdrawing approval(309O)
(1)This section applies if an approval under section 309G has been given by the appropriate regulator in relation to the performance by a person of a designated senior management function.
(2)The appropriate regulator may withdraw the approval if it considers that the person is not a fit and proper person to perform the function.
(3)In considering whether to withdraw an approval, the appropriate regulator may take into account any matter which may be taken into account in considering an application under section 309I.
(4)The relevant recognised body on whose application the approval was given must, at specified intervals—
(a)consider whether there are grounds on which the appropriate regulator could withdraw the approval under this section, and
(b)if it considers that there are such grounds, notify the appropriate regulator of those grounds.
Full captured verbatim text
In Part 18 of FSMA 2000 (recognised investment exchanges, clearing houses and CSDs), before Chapter 3B insert— CHAPTER 2APerformance of functions of recognised bodiesRelevant recognised bodiesRecognised bodies to which this Chapter applies(309A) (1) The Treasury may by regulations specify as a “relevant recognised body” for the purposes of this Chapter a type of recognised body mentioned in subsection (2). (2) The types of recognised bodies are— (a) recognised investment exchanges; (b) recognised central counterparties; (c) recognised CSDs. (3) Before making regulations under subsection (1), the Treasury— (a) must consult the FCA if it proposes to specify recognised investment exchanges (or recognised investment exchanges of a specified description); (b) must consult the Bank of England if it proposes to specify recognised central counterparties or recognised CSDs (or recognised central counterparties or recognised CSDs of a specified description); (c) in any case, must consult such persons as appear to it to be representative of interests likely to be affected by the application of this Chapter to the types, or descriptions, of bodies it proposes to specify. (4) In this Chapter, references to “the appropriate regulator” are to be read in accordance with section 285A (accordingly, the appropriate regulator in relation to a recognised investment exchange is the FCA, and in any other case is the Bank of England). (5) Nothing in this Chapter applies to overseas investment exchanges. ProhibitionPart 18 prohibition orders(309B) (1) This section applies if it appears to the appropriate regulator that an individual is not a fit and proper person to perform functions in relation to an activity carried on by a relevant recognised body. (2) The appropriate regulator may make an order (a “Part 18 prohibition order”) prohibiting the individual from performing a specified function, any function falling within a specified description or any function. (3) A Part 18 prohibition order may relate to— (a) a specified activity, any activity falling within a specified description or all activities (but see subsection (5)); (b) all persons falling within subsection (4), or a particular paragraph of that subsection, or all persons within a specified class of person falling within a particular paragraph of that subsection. (4) A person falls within this subsection if the person is— (a) a relevant recognised body (whether or not the appropriate regulator making the order is the appropriate regulator in relation to relevant recognised bodies of that type), (b) an authorised person, (c) an exempt person (other than a relevant recognised body), or (d) a person to whom, as a result of Part 20, the general prohibition does not apply in relation to a regulated activity. (5) If a Part 18 prohibition order makes provision in relation to a person or persons falling within subsection (4)(b), (c) or (d), subsection (3)(a) applies in relation to such provision as if references to an activity or activities were to a regulated activity or regulated activities. (6) In this section, “specified” means specified in the Part 18 prohibition order. Procedure for making Part 18 prohibition orders(309C) (1) If the appropriate regulator proposes to make a Part 18 prohibition order it must— (a) comply with such consultation requirements as may be prescribed, and (b) give the individual to whom the order would apply a warning notice. (2) A warning notice under subsection (1)(b) must set out the terms of the prohibition. (3) If the appropriate regulator decides to make a Part 18 prohibition order it must give the individual to whom the order applies a decision notice. (4) The decision notice must— (a) name the individual to whom the Part 18 prohibition order applies, and (b) set out the terms of the order. (5) If the appropriate regulator decides to make a Part 18 prohibition order, the individual to whom the order applies may refer the matter to the Tribunal. Varying and withdrawing Part 18 prohibition orders(309D) (1) This section applies where the appropriate regulator has made a Part 18 prohibition order in relation to an individual. (2) The appropriate regulator may vary or revoke the Part 18 prohibition order on the application of the individual. (3) Before varying or revoking a Part 18 prohibition order, the appropriate regulator must comply with such consultation requirements as may be prescribed. (4) On an application for the variation or revocation of a Part 18 prohibition order— (a) if the appropriate regulator decides to grant the application, it must give the applicant written notice of its decision; (b) if the appropriate regulator proposes to refuse the application, it must give the applicant a warning notice; (c) if the appropriate regulator decides to refuse the application, it must give the applicant a decision notice. (5) If the appropriate regulator gives the applicant a decision notice under subsection (4)(c), the applicant may refer the matter to the Tribunal. Offence of breaching prohibition(309E) (1) An individual who performs a function, or agrees to perform a function, in breach of a Part 18 prohibition order is guilty of an offence. (2) An individual who commits an offence under this section is liable— (a) on summary conviction in England and Wales, to a fine; (b) on summary conviction in Scotland, to a fine not exceeding level 5 on the standard scale; (c) on summary conviction in Northern Ireland, to a fine not exceeding level 5 on the standard scale. (3) In proceedings for an offence under this section, it is a defence for the individual to show that the individual took all reasonable precautions and exercised all due diligence to avoid committing the offence. Duty in relation to prohibited individuals(309F) (1) A person (“P”) falling within section 309B(4) must take reasonable care to ensure that no function in relation to the carrying on of P’s activities is performed by an individual who is prohibited from performing that function by a Part 18 prohibition order. (2) A contravention of subsection (1) is actionable at the suit of a private person who suffers loss as a result of the contravention, subject to the defences and other incidents applying to actions for breach of statutory duty. (3) In prescribed cases, a contravention of subsection (1) which would be actionable at the suit of a private person is actionable at the suit of a person who is not a private person, subject to the defences and other incidents applying to actions for breach of statutory duty. (4) In this section “private person” has such meaning as may be prescribed. ApprovalRequirement for approval(309G) (1) A relevant recognised body must take reasonable care to ensure that a person does not perform a designated senior management function in relation to the carrying on of an activity by the body, unless the person is acting in accordance with an approval given by the appropriate regulator under this section. (2) Subsection (1) applies only in relation to a function performed under— (a) an arrangement entered into by the relevant recognised body, or (b) an arrangement entered into by a contractor of the relevant recognised body. (3) “Designated senior management function” means a function of a description specified in rules made by the appropriate regulator. (4) The appropriate regulator may specify a description of function under subsection (3) only if it is satisfied that the function is a senior management function. (5) A function is a “senior management function” in relation to the carrying on of a relevant recognised body’s activities if— (a) the function will require the person performing it to be responsible for managing one or more aspects of the body’s affairs, and (b) those aspects involve, or might involve, a risk of serious consequences— (i) for the body, or (ii) for business or other interests in the United Kingdom. (6) In subsection (5)(a), the reference to managing one or more aspects of a relevant recognised body’s affairs includes a reference to taking decisions, or participating in the taking of decisions, about how one or more aspects of those affairs should be carried on. (7) In subsection (2), “arrangement”— (a) means any kind of arrangement for the performance of a function of a relevant recognised body which is entered into by the body, or by a contractor of the body, and another person, and (b) includes, in particular, an arrangement under which the other person is appointed to an office, becomes a partner or is employed (whether under a contract of service or otherwise). Rules under section 309G(3): transitional provision(309H) (1) In relation to rules made by the Bank of England or the FCA under section 309G(3), the power conferred by section 137T(c) to make transitional provision includes, in particular, power— (a) to provide for anything done under this Chapter, or under Part 5 (performance of regulated activities), in relation to a senior management function of a particular description to be treated as having been done in relation to a senior management function of a different description; (b) to provide for anything done under this Chapter, or under Part 5 (including any application or order made, any requirement imposed and any approval or notice given) to cease to have effect, to continue to have effect, or to continue to have effect with modifications, or subject to time limits or conditions; (c) to provide for rules made by the regulator making the rules under section 309G(3) to apply with modifications; (d) to make saving provision. (2) The Treasury may by regulations make whatever incidental, consequential, transitional, supplemental or saving provision the Treasury consider appropriate in connection with the making of rules under section 309G(3). (3) Regulations under subsection (2) may— (a) confer functions on the Bank of England or the FCA (including the function of making rules); (b) modify legislation (including any provision of, or made under, this Act). (4) In subsection (3)(b)— “legislation” means primary legislation, subordinate legislation (within the meaning of the Interpretation Act 1978) and retained direct EU legislation, but does not include rules or other instruments made by any regulator; “modify” includes amend, repeal or revoke. Applications for approval(309I) (1) A relevant recognised body may apply for approval from the appropriate regulator under section 309G for a person to perform a designated senior management function in relation to the carrying on of the body’s activities. (2) The application must be made in such manner as the appropriate regulator may direct. (3) The application must contain— (a) a statement setting out the aspects of the applicant’s affairs which it is intended that the person will be responsible for managing in performing the function, and (b) such other information as the appropriate regulator may reasonably require. (4) A statement provided under subsection (3)(a) is known as a “statement of responsibilities”. (5) At any time after the application is received, and before it is determined, the appropriate regulator may require the applicant to provide it with such further information as it reasonably considers necessary to enable it to determine the application. (6) The appropriate regulator may require the applicant to present information provided under this section in such form, or to verify the information in such a way, as the appropriate regulator may direct. (7) Different directions may be given, and different requirements may be imposed, in relation to different applications or categories of application. (8) In subsection (1), “relevant recognised body” includes— (a) if recognised investment exchanges are a type of recognised body to which this Chapter applies, a person who has applied for recognition as such under section 287; (b) if recognised central counterparties are a type of recognised body to which this Chapter applies, a person who has applied for recognition as such under section 288; (c) if recognised CSDs are a type of recognised body to which this Chapter applies, a person who has applied for recognition as such under section 288A. Vetting by relevant recognised bodies(309J) (1) Before making an application under section 309I for approval for a person to perform a designated senior management function, a relevant recognised body must be satisfied that the person is a fit and proper person to perform the function. (2) In deciding that question, the relevant recognised body must have regard, among other things, to whether the person, or any person who may perform a function on the person’s behalf— (a) has obtained a specified qualification; (b) has undergone, or is undergoing, specified training; (c) possesses a specified level of competence; (d) has specified personal characteristics. (3) In subsection (2), “specified” means specified in rules made by the appropriate regulator. (4) Before making rules for the purposes of this section, the appropriate regulator must comply with such consultation requirements as may be prescribed. Determining applications: power to grant approval(309K) (1) The appropriate regulator may grant an application under section 309I for approval for a person to perform a designated senior management function only if— (a) it is satisfied that the person is a fit and proper person to perform the function, or (b) it is satisfied that the condition in paragraph (a) will be met if the application is granted subject to one or more conditions (see subsection (3)). (2) In determining the application, the appropriate regulator may have regard, among other things, to the matters mentioned in section 309J(2) (qualifications etc of person for whom approval sought). (3) The appropriate regulator may, if it appears to it that it is desirable to do so in order to advance a relevant objective— (a) grant the application subject to any conditions that it considers appropriate; (b) grant the application so as to give approval only for a limited period. (4) For the purposes of subsection (3), “relevant objective” means— (a) if the appropriate regulator is the FCA, any of its operational objectives; (b) if the appropriate regulator is the Bank of England, the Financial Stability Objective. (5) Before granting approval under this section (whether or not subject to conditions or for a limited period), the appropriate regulator must comply with such consultation requirements as may be prescribed. Determining applications: period for approval(309L) (1) The appropriate regulator must, before the end of the period for consideration, determine whether— (a) to grant an application under section 309I for approval for a person to perform a function, without imposing conditions or limiting the period for which the approval has effect, or (b) to give a warning notice under section 309M(2). (2) In subsection (1), “the period for consideration” means the period of 3 months beginning with the day on which the appropriate regulator receives the application. This is subject to subsections (3) and (4). (3) Where the application under section 309I is made by a person in reliance on section 309I(8) (applicants for recognition to be treated as relevant recognised bodies), “the period for consideration” means whichever of the following periods ends later— (a) the period described in subsection (2), and (b) the period within which the person’s application for recognition must be determined— (i) in the case of an application under section 287, in accordance with section 290(1B); (ii) in the case of an application under section 288, in accordance with Article 17(7) of the EMIR regulation; (iii) in the case of an application under section 288A, in accordance with section 290(4A). (4) If the appropriate regulator imposes a requirement under section 309I(5), the period described in subsection (2) stops running on the day on which the requirement is imposed but starts running again— (a) on the day on which the required information is received by the appropriate regulator, or (b) if the information is not provided on a single day, on the last of the days on which it is received by the appropriate regulator. (5) An applicant may withdraw an application under section 309I, by giving written notice to the appropriate regulator, at any time before the appropriate regulator determines the application, but only with the consent of— (a) the person in relation to whom the application is made, and (b) the person by whom that person is to be retained to perform the function to which the application relates, if not the applicant. Determining applications: further procedure(309M) (1) If the appropriate regulator decides to grant an application under section 309I without imposing conditions or limiting the period for which approval is given, it must give written notice of its decision to each of the interested parties. (2) If the appropriate regulator proposes to refuse the application, or to grant the application subject to conditions or for a limited period (or both), it must give a warning notice to each of the interested parties. (3) If the appropriate regulator decides to refuse the application, or to grant the application subject to conditions or for a limited period (or both), it must give a decision notice to each of the interested parties. (4) If the appropriate regulator decides to refuse the application, or to grant the application subject to conditions or for a limited period (or both), each of the interested parties may refer the matter to the Tribunal. (5) In this section, “the interested parties”, in relation to an application under section 309I for approval for a person to perform a function, are— (a) the applicant, (b) the person in relation to whom the application is made, and (c) the person by whom that person is to be retained to perform the function to which the application relates, if not the applicant. Changes in responsibilities(309N) (1) This section applies where, on an application made by a relevant recognised body under section 309I, the appropriate regulator has given approval for a person to perform a designated senior management function (and has not withdrawn the approval). (2) Each time there is a notifiable change in the aspects of the relevant recognised body’s affairs which the person is responsible for managing in performing the function, the relevant recognised body must provide the appropriate regulator with a revised statement of responsibilities (see section 309I(4)). (3) Whether a change is “notifiable” is to be determined by the relevant recognised body in accordance with rules made by the appropriate regulator. (4) The appropriate regulator may require the relevant recognised body to present information provided under this section in such form, or to verify the information in such a way, as the appropriate regulator may direct. Withdrawing approval(309O) (1) This section applies if an approval under section 309G has been given by the appropriate regulator in relation to the performance by a person of a designated senior management function. (2) The appropriate regulator may withdraw the approval if it considers that the person is not a fit and proper person to perform the function. (3) In considering whether to withdraw an approval, the appropriate regulator may take into account any matter which may be taken into account in considering an application under section 309I. (4) The relevant recognised body on whose application the approval was given must, at specified intervals— (a) consider whether there are grounds on which the appropriate regulator could withdraw the approval under this section, and (b) if it considers that there are such grounds, notify the appropriate regulator of those grounds.