Captured statutory text (L5)
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(5)For the purposes of subsection (4), a “specified interval” is an interval specified in rules made by the appropriate regulator for the purposes of this section.
Procedure for withdrawing approval(309P)
(1)If the appropriate regulator proposes to withdraw an approval given under section 309G, it must—
(a)comply with such consultation requirements as may be prescribed, and
(b)give each of the interested parties a warning notice.
(2)If the appropriate regulator decides to withdraw the approval, it must give each of the interested parties a decision notice.
(3)If the appropriate regulator decides to withdraw the approval, each of the interested parties may refer the matter to the Tribunal.
(4)In this section, “the interested parties”, in relation to an approval given under section 309G, are—
(a)the relevant recognised body on whose application the approval was given,
(b)the person in relation to whom the approval was given, and
(c)the person by whom that person’s services are retained, if not the relevant recognised body.
Varying approval at request of relevant recognised body(309Q)
(1)Where an approval under section 309G has effect subject to conditions, the relevant recognised body that applied for the approval may apply to the appropriate regulator to vary the approval by—
(a)varying a condition,
(b)removing a condition, or
(c)imposing a new condition.
(2)Where an approval under section 309G has effect for a limited period, the relevant recognised body that applied for the approval may apply to the appropriate regulator to vary the approval by—
(a)varying the period, or
(b)removing the limit on the period for which the approval is to have effect.
(3)The appropriate regulator must, before the end of the consultation period, determine whether—
(a)to grant the application, or
(b)to give a warning notice under section 309M(2) (as applied by subsection (8)).
(4)The “consultation period” is—
(a)such period as may be prescribed (and different periods may be prescribed in relation to different types of relevant recognised bodies), or
(b)if no such period is prescribed, the period of 3 months beginning with the day on which the appropriate regulator receives the application to vary the approval.
(5)The appropriate regulator may refuse an application under this section, if it appears to it that it is desirable to do so in order to advance a relevant objective.
(6)For the purposes of subsection (5), “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.
(7)An application may not be made under this section to vary or remove a condition or limit that was imposed under section 309Z2.
(8)Except as provided for below, the following sections apply to an application under this section for variation of an approval as they apply to an application under section 309I—
(a)section 309I(2) to (8),
(b)section 309L(4) and (5), and
(c)section 309M, but as if the references in subsections (1) to (4) to granting the application subject to conditions or for a limited period, or without imposing conditions or limiting the period for which approval is given, were omitted.
Varying approval on the appropriate regulator’s initiative(309R)
(1)The appropriate regulator may vary an approval under section 309G if it considers it desirable to do so in order to advance a relevant objective.
(2)For these purposes, “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.
(3)The appropriate regulator may vary the approval by doing the following—
(a)imposing a condition,
(b)varying a condition,
(c)removing a condition,
(d)where the approval has effect for an unlimited period, limiting the period of the approval, or
(e)where the approval has effect for a limited period, varying that period or removing the limit on the period.
(4)A variation under this section takes effect—
(a)immediately, if the notice given under subsection (5) states that to be the case,
(b)on a date specified in the notice, or
(c)if no date is specified in the notice, when the matter to which the notice relates is no longer open to review.
(5)If the appropriate regulator proposes to vary an approval or varies an approval with immediate effect, it must give each of the interested parties written notice—
(a)setting out details of the variation,
(b)stating the reasons for the variation,
(c)stating that each of the interested parties may make representations to the appropriate regulator within the period specified in the notice (whether or not any of the interested parties has referred the matter to the Tribunal),
(d)stating when the variation takes effect, and
(e)setting out each interested party’s right to refer the matter to the Tribunal.
(6)A variation may be expressed to take effect immediately or on a specified date only if the appropriate regulator, having regard to its reason for varying the approval, reasonably considers that it is necessary for the variation to take effect immediately or on that date (as appropriate).
(7)The appropriate regulator may extend the period allowed under the notice for making representations.
(8)The appropriate regulator must give each of the interested parties written notice if, having considered the representations made, it decides—
(a)to vary the approval, or
(b)if the variation has taken effect, not to rescind it.
(9)A notice under subsection (8) must inform the interested parties of the right of each of them to refer the matter to the Tribunal.
(10)The appropriate regulator must give each of the interested parties written notice if, having considered the representations made, it decides—
(a)not to vary the approval,
(b)to vary the approval in a different way, or
(c)if the variation has taken effect, to rescind it.
(11)A notice under subsection (10)(b) must comply with the requirements set out in subsection (5)(a) to (e).
(12)A notice under this section which informs the interested parties of the right to refer a matter to the Tribunal must give an indication of the procedure on such a reference.
(13)In this section, “the interested parties” has the same meaning as in section 309P.
(14)For the purposes of subsection (4)(c), whether a matter is open to review is to be determined in accordance with section 391(8).
Statement of policy on approval(309S)
(1)The appropriate regulator must prepare and issue a statement of its policy with respect to—
(a)the giving of approval under section 309G subject to conditions or for a limited period only, and
(b)the variation under section 309Q or 309R of an approval given under section 309G.
(2)The appropriate regulator—
(a)may alter or replace a statement issued under this section, and
(b)if it does so, must issue the altered or replacement statement.
(3)Before the appropriate regulator issues a statement of policy under this section, it must publish a draft of the proposed statement in the way appearing to it to be best calculated to bring it to the attention of the public.
(4)The draft statement must be accompanied by a notice stating that representations about the proposal may be made to the appropriate regulator within a period specified in the notice.
(5)Before issuing the proposed statement, the appropriate regulator must have regard to any representations made to it in accordance with subsection (4).
(6)If the appropriate regulator issues the proposed statement it must publish the following in the way appearing to it to be best calculated to bring them to the attention of the public—
(a)the statement,
(b)an account, in general terms, of the representations made to it in accordance with subsection (4) and its response to them, and
(c)if the statement issued differs from the draft published under subsection (3) in a way which the appropriate regulator considers to be significant, details of the difference.
(7)The appropriate regulator may charge a reasonable fee for providing a person with—
(a)a copy of a draft statement published under subsection (3), or
(b)a copy of a statement published under subsection (6)(a).
(8)The appropriate regulator must, without delay, give the Treasury a copy of each statement it publishes under subsection (6)(a).
Breach of statutory duty by relevant recognised bodies(309T)
(1)A contravention of section 309G(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.
(2)In prescribed cases, a contravention of section 309G(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.
(3)In this section “private person” has such meaning as may be prescribed.
Power to impose penalties(309U)
(1)The appropriate regulator may impose a penalty on a person if it is satisfied that—
(a)the person has at any time performed a designated senior management function without approval, and
(b)at that time the person knew, or could reasonably be expected to have known, that they were performing a designated senior management function without approval.
(2)The penalty may be of such amount as the appropriate regulator considers appropriate.
(3)A person performs a designated senior management function without approval at a time if—
(a)the person performs a designated senior management function under an arrangement entered into by a relevant recognised body, or by a contractor of a relevant recognised body, in relation to the carrying on of an activity by the body, and
(b)when performing the function, the person is not acting in accordance with an approval given under section 309G.
(4)The appropriate regulator may not impose a penalty on a person under this section after the end of the limitation period unless it gave the person a warning notice under section 309V before the end of that period.
(5)For the purposes of subsection (4)—
(a)“the limitation period” means the period of 6 years beginning with the first day on which the appropriate regulator knew that the person concerned had performed a designated senior management function without approval, and
(b)the appropriate regulator is to be treated as knowing that a person has performed a designated senior management function without approval if it has information from which that can reasonably be inferred.
Procedure for imposing penalties(309V)
(1)If the appropriate regulator proposes to impose a penalty on a person under section 309U, it must give the person a warning notice.
(2)A warning notice under this section must state the amount of the penalty.
(3)If the appropriate regulator decides to impose a penalty on a person under section 309U, it must give the person a decision notice.
(4)A decision notice under this section must state the amount of the penalty.
(5)If the appropriate regulator decides to impose a penalty on a person under section 309U, the person may refer the matter to the Tribunal.
Statement of policy on penalties(309W)
(1)The appropriate regulator must prepare and issue a statement of its policy with respect to—
(a)the imposition of penalties under section 309U, and
(b)the amount of penalties under that section.
(2)The appropriate regulator’s policy in determining whether a penalty should be imposed, and what the amount of a penalty should be, must include having regard to—
(a)the conduct of the person on whom the penalty is to be imposed,
(b)the extent to which the person could reasonably be expected to have known that a designated senior management function was performed without approval,
(c)the length of the period during which the person performed a designated senior management function without approval, and
(d)whether the person on whom the penalty is to be imposed is an individual.
(3)The appropriate regulator’s policy in determining whether a penalty should be imposed on a person must also include having regard to the appropriateness of taking action against the person instead of, or in addition to, taking action against a relevant recognised body.
(4)A statement issued under this section must include an indication of the circumstances in which the appropriate regulator would expect to be satisfied that a person could reasonably be expected to have known that the person was performing a designated senior management function without approval.
(5)The appropriate regulator—
(a)may alter or replace a statement issued under this section, and
(b)if it does so, must issue the altered or replacement statement.
(6)When imposing, or deciding whether to impose, a penalty on a person under section 309U, the appropriate regulator must have regard to any statement of policy published under this section (which was in force at a time when the person performed a designated senior management function without approval).
Procedure for statement of policy on penalties(309X)
(1)Before the appropriate regulator issues a statement under section 309W(1) or (5), it must publish a draft of the proposed statement in the way appearing to it to be best calculated to bring it to the attention of the public.
(2)The draft statement must be accompanied by a notice stating that representations about the proposal may be made to the appropriate regulator within the period specified in the notice.
(3)Before issuing the proposed statement, the appropriate regulator must have regard to any representations made to it in accordance with subsection (2).
(4)If the appropriate regulator issues the proposed statement it must publish the following in the way appearing to it to be best calculated to bring them to the attention of the public—
(a)the statement,
(b)an account, in general terms, of the representations made to the appropriate regulator in accordance with subsection (2) and the appropriate regulator’s response to them, and
(c)if the statement issued differs from the draft published under subsection (1) in a way which the appropriate regulator considers to be significant, details of the difference.
(5)The appropriate regulator may charge a reasonable fee for providing a person with—
(a)a copy of a draft statement published under subsection (1), or
(b)a copy of a statement published under subsection (4)(a).
(6)The appropriate regulator must, without delay, give the Treasury a copy of a statement which it publishes under subsection (4)(a).
Certification of employeesCertification of employees by relevant recognised bodies(309Y)
(1)A relevant recognised body must take reasonable care to ensure that none of its employees performs a specified function in relation to the carrying on of an activity by the body, unless the employee has a valid certificate issued by the body under section 309Z.
(2)Subsection (1) applies only in relation to a function performed under an arrangement entered into by the body.
(3)In this section, “specified 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, in relation to the carrying on of an activity by a relevant recognised body of a particular description—
(a)the function is not a designated senior management function in relation to the carrying on of that activity by a relevant recognised body of that description, and
(b)the appropriate regulator is satisfied that the function is a significant-harm function.
(5)A function is a “significant-harm function”, in relation to the carrying on of an activity by a relevant recognised body, if—
(a)the function will require the person performing it to be involved in one or more aspects of the body’s affairs, so far as relating to the activity, and
(b)those aspects involve, or might involve, a risk of significant harm to the body or to any of its consumers.
(6)In this section, “consumers”, in relation to a relevant recognised body, means—
(a)persons who use, have used or may use a service provided by the body, or
(b)persons who have relevant rights or interests in relation to any such service.
(7)A person (“P”) has a “relevant right or interest” in relation to a service provided by a relevant recognised body if P has a right or interest—
(a)which is derived from, or is otherwise attributable to, the use of the service by others, or
(b)which may be adversely affected by the use of the service by persons acting on P’s behalf or in a fiduciary capacity in relation to P.
(8)For these purposes—
(a)if a person is providing a service as a trustee, the persons who are, have been or may be beneficiaries of the trust are to be treated as persons who use, have used or may use the service;
(b)a person who deals with another person (“A”) in the course of A providing a service is to be treated as using the service.
Issuing certificates(309Z)
(1)A relevant recognised body may issue a certificate to a person under this section in relation to a function only if the body is satisfied that the person is a fit and proper person to perform the function.
(2)In deciding that question the body must have regard, among other things, to whether the person—
(a)has obtained a specified qualification,
(b)has undergone, or is undergoing, specified training,
(c)possesses a specified level of competence, or
(d)has specified personal characteristics.
(3)In subsection (2), “specified” means specified in rules made by the appropriate regulator.
(4)A certificate issued by a relevant recognised body to a person under this section must—
(a)state that the body is satisfied that the person is a fit and proper person to perform the function to which the certificate relates, and
(b)set out the aspects of the body’s affairs in which the person will be involved in performing the function.
(5)A certificate issued under this section is valid for a period of 12 months beginning with the day on which it is issued.
(6)If, after having considered whether a person is a fit and proper person to perform a function, a relevant recognised body decides not to issue a certificate to the person under this section, the body must give the person a notice in writing stating—
(a)what steps (if any) the body proposes to take in relation to the person as a result of the decision, and
(b)the reasons for proposing to take those steps.
(7)A relevant recognised body must maintain a record of every employee who has a valid certificate issued by it under this section.
Rules of conductRules of conduct(309Z1)
(1)If it appears to the appropriate regulator to be necessary or expedient for the purposes of advancing a relevant objective, the appropriate regulator may make rules about the conduct of the following persons in relation to the performance by them of qualifying functions—
(a)persons in relation to whom the appropriate regulator has given its approval under section 309G (“Part 18 approved persons”);
(b)directors of relevant recognised bodies;
(c)employees of relevant recognised bodies.
(2)Rules under subsection (1) may include provision requiring a relevant recognised body to—
(a)notify persons mentioned in subsection (1) of the rules that apply to them;
(b)take specified steps to secure that such persons understand how those rules apply in relation to them.
Full captured verbatim text
(5) For the purposes of subsection (4), a “specified interval” is an interval specified in rules made by the appropriate regulator for the purposes of this section. Procedure for withdrawing approval(309P) (1) If the appropriate regulator proposes to withdraw an approval given under section 309G, it must— (a) comply with such consultation requirements as may be prescribed, and (b) give each of the interested parties a warning notice. (2) If the appropriate regulator decides to withdraw the approval, it must give each of the interested parties a decision notice. (3) If the appropriate regulator decides to withdraw the approval, each of the interested parties may refer the matter to the Tribunal. (4) In this section, “the interested parties”, in relation to an approval given under section 309G, are— (a) the relevant recognised body on whose application the approval was given, (b) the person in relation to whom the approval was given, and (c) the person by whom that person’s services are retained, if not the relevant recognised body. Varying approval at request of relevant recognised body(309Q) (1) Where an approval under section 309G has effect subject to conditions, the relevant recognised body that applied for the approval may apply to the appropriate regulator to vary the approval by— (a) varying a condition, (b) removing a condition, or (c) imposing a new condition. (2) Where an approval under section 309G has effect for a limited period, the relevant recognised body that applied for the approval may apply to the appropriate regulator to vary the approval by— (a) varying the period, or (b) removing the limit on the period for which the approval is to have effect. (3) The appropriate regulator must, before the end of the consultation period, determine whether— (a) to grant the application, or (b) to give a warning notice under section 309M(2) (as applied by subsection (8)). (4) The “consultation period” is— (a) such period as may be prescribed (and different periods may be prescribed in relation to different types of relevant recognised bodies), or (b) if no such period is prescribed, the period of 3 months beginning with the day on which the appropriate regulator receives the application to vary the approval. (5) The appropriate regulator may refuse an application under this section, if it appears to it that it is desirable to do so in order to advance a relevant objective. (6) For the purposes of subsection (5), “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. (7) An application may not be made under this section to vary or remove a condition or limit that was imposed under section 309Z2. (8) Except as provided for below, the following sections apply to an application under this section for variation of an approval as they apply to an application under section 309I— (a) section 309I(2) to (8), (b) section 309L(4) and (5), and (c) section 309M, but as if the references in subsections (1) to (4) to granting the application subject to conditions or for a limited period, or without imposing conditions or limiting the period for which approval is given, were omitted. Varying approval on the appropriate regulator’s initiative(309R) (1) The appropriate regulator may vary an approval under section 309G if it considers it desirable to do so in order to advance a relevant objective. (2) For these purposes, “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. (3) The appropriate regulator may vary the approval by doing the following— (a) imposing a condition, (b) varying a condition, (c) removing a condition, (d) where the approval has effect for an unlimited period, limiting the period of the approval, or (e) where the approval has effect for a limited period, varying that period or removing the limit on the period. (4) A variation under this section takes effect— (a) immediately, if the notice given under subsection (5) states that to be the case, (b) on a date specified in the notice, or (c) if no date is specified in the notice, when the matter to which the notice relates is no longer open to review. (5) If the appropriate regulator proposes to vary an approval or varies an approval with immediate effect, it must give each of the interested parties written notice— (a) setting out details of the variation, (b) stating the reasons for the variation, (c) stating that each of the interested parties may make representations to the appropriate regulator within the period specified in the notice (whether or not any of the interested parties has referred the matter to the Tribunal), (d) stating when the variation takes effect, and (e) setting out each interested party’s right to refer the matter to the Tribunal. (6) A variation may be expressed to take effect immediately or on a specified date only if the appropriate regulator, having regard to its reason for varying the approval, reasonably considers that it is necessary for the variation to take effect immediately or on that date (as appropriate). (7) The appropriate regulator may extend the period allowed under the notice for making representations. (8) The appropriate regulator must give each of the interested parties written notice if, having considered the representations made, it decides— (a) to vary the approval, or (b) if the variation has taken effect, not to rescind it. (9) A notice under subsection (8) must inform the interested parties of the right of each of them to refer the matter to the Tribunal. (10) The appropriate regulator must give each of the interested parties written notice if, having considered the representations made, it decides— (a) not to vary the approval, (b) to vary the approval in a different way, or (c) if the variation has taken effect, to rescind it. (11) A notice under subsection (10)(b) must comply with the requirements set out in subsection (5)(a) to (e). (12) A notice under this section which informs the interested parties of the right to refer a matter to the Tribunal must give an indication of the procedure on such a reference. (13) In this section, “the interested parties” has the same meaning as in section 309P. (14) For the purposes of subsection (4)(c), whether a matter is open to review is to be determined in accordance with section 391(8). Statement of policy on approval(309S) (1) The appropriate regulator must prepare and issue a statement of its policy with respect to— (a) the giving of approval under section 309G subject to conditions or for a limited period only, and (b) the variation under section 309Q or 309R of an approval given under section 309G. (2) The appropriate regulator— (a) may alter or replace a statement issued under this section, and (b) if it does so, must issue the altered or replacement statement. (3) Before the appropriate regulator issues a statement of policy under this section, it must publish a draft of the proposed statement in the way appearing to it to be best calculated to bring it to the attention of the public. (4) The draft statement must be accompanied by a notice stating that representations about the proposal may be made to the appropriate regulator within a period specified in the notice. (5) Before issuing the proposed statement, the appropriate regulator must have regard to any representations made to it in accordance with subsection (4). (6) If the appropriate regulator issues the proposed statement it must publish the following in the way appearing to it to be best calculated to bring them to the attention of the public— (a) the statement, (b) an account, in general terms, of the representations made to it in accordance with subsection (4) and its response to them, and (c) if the statement issued differs from the draft published under subsection (3) in a way which the appropriate regulator considers to be significant, details of the difference. (7) The appropriate regulator may charge a reasonable fee for providing a person with— (a) a copy of a draft statement published under subsection (3), or (b) a copy of a statement published under subsection (6)(a). (8) The appropriate regulator must, without delay, give the Treasury a copy of each statement it publishes under subsection (6)(a). Breach of statutory duty by relevant recognised bodies(309T) (1) A contravention of section 309G(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. (2) In prescribed cases, a contravention of section 309G(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. (3) In this section “private person” has such meaning as may be prescribed. Power to impose penalties(309U) (1) The appropriate regulator may impose a penalty on a person if it is satisfied that— (a) the person has at any time performed a designated senior management function without approval, and (b) at that time the person knew, or could reasonably be expected to have known, that they were performing a designated senior management function without approval. (2) The penalty may be of such amount as the appropriate regulator considers appropriate. (3) A person performs a designated senior management function without approval at a time if— (a) the person performs a designated senior management function under an arrangement entered into by a relevant recognised body, or by a contractor of a relevant recognised body, in relation to the carrying on of an activity by the body, and (b) when performing the function, the person is not acting in accordance with an approval given under section 309G. (4) The appropriate regulator may not impose a penalty on a person under this section after the end of the limitation period unless it gave the person a warning notice under section 309V before the end of that period. (5) For the purposes of subsection (4)— (a) “the limitation period” means the period of 6 years beginning with the first day on which the appropriate regulator knew that the person concerned had performed a designated senior management function without approval, and (b) the appropriate regulator is to be treated as knowing that a person has performed a designated senior management function without approval if it has information from which that can reasonably be inferred. Procedure for imposing penalties(309V) (1) If the appropriate regulator proposes to impose a penalty on a person under section 309U, it must give the person a warning notice. (2) A warning notice under this section must state the amount of the penalty. (3) If the appropriate regulator decides to impose a penalty on a person under section 309U, it must give the person a decision notice. (4) A decision notice under this section must state the amount of the penalty. (5) If the appropriate regulator decides to impose a penalty on a person under section 309U, the person may refer the matter to the Tribunal. Statement of policy on penalties(309W) (1) The appropriate regulator must prepare and issue a statement of its policy with respect to— (a) the imposition of penalties under section 309U, and (b) the amount of penalties under that section. (2) The appropriate regulator’s policy in determining whether a penalty should be imposed, and what the amount of a penalty should be, must include having regard to— (a) the conduct of the person on whom the penalty is to be imposed, (b) the extent to which the person could reasonably be expected to have known that a designated senior management function was performed without approval, (c) the length of the period during which the person performed a designated senior management function without approval, and (d) whether the person on whom the penalty is to be imposed is an individual. (3) The appropriate regulator’s policy in determining whether a penalty should be imposed on a person must also include having regard to the appropriateness of taking action against the person instead of, or in addition to, taking action against a relevant recognised body. (4) A statement issued under this section must include an indication of the circumstances in which the appropriate regulator would expect to be satisfied that a person could reasonably be expected to have known that the person was performing a designated senior management function without approval. (5) The appropriate regulator— (a) may alter or replace a statement issued under this section, and (b) if it does so, must issue the altered or replacement statement. (6) When imposing, or deciding whether to impose, a penalty on a person under section 309U, the appropriate regulator must have regard to any statement of policy published under this section (which was in force at a time when the person performed a designated senior management function without approval). Procedure for statement of policy on penalties(309X) (1) Before the appropriate regulator issues a statement under section 309W(1) or (5), it must publish a draft of the proposed statement in the way appearing to it to be best calculated to bring it to the attention of the public. (2) The draft statement must be accompanied by a notice stating that representations about the proposal may be made to the appropriate regulator within the period specified in the notice. (3) Before issuing the proposed statement, the appropriate regulator must have regard to any representations made to it in accordance with subsection (2). (4) If the appropriate regulator issues the proposed statement it must publish the following in the way appearing to it to be best calculated to bring them to the attention of the public— (a) the statement, (b) an account, in general terms, of the representations made to the appropriate regulator in accordance with subsection (2) and the appropriate regulator’s response to them, and (c) if the statement issued differs from the draft published under subsection (1) in a way which the appropriate regulator considers to be significant, details of the difference. (5) The appropriate regulator may charge a reasonable fee for providing a person with— (a) a copy of a draft statement published under subsection (1), or (b) a copy of a statement published under subsection (4)(a). (6) The appropriate regulator must, without delay, give the Treasury a copy of a statement which it publishes under subsection (4)(a). Certification of employeesCertification of employees by relevant recognised bodies(309Y) (1) A relevant recognised body must take reasonable care to ensure that none of its employees performs a specified function in relation to the carrying on of an activity by the body, unless the employee has a valid certificate issued by the body under section 309Z. (2) Subsection (1) applies only in relation to a function performed under an arrangement entered into by the body. (3) In this section, “specified 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, in relation to the carrying on of an activity by a relevant recognised body of a particular description— (a) the function is not a designated senior management function in relation to the carrying on of that activity by a relevant recognised body of that description, and (b) the appropriate regulator is satisfied that the function is a significant-harm function. (5) A function is a “significant-harm function”, in relation to the carrying on of an activity by a relevant recognised body, if— (a) the function will require the person performing it to be involved in one or more aspects of the body’s affairs, so far as relating to the activity, and (b) those aspects involve, or might involve, a risk of significant harm to the body or to any of its consumers. (6) In this section, “consumers”, in relation to a relevant recognised body, means— (a) persons who use, have used or may use a service provided by the body, or (b) persons who have relevant rights or interests in relation to any such service. (7) A person (“P”) has a “relevant right or interest” in relation to a service provided by a relevant recognised body if P has a right or interest— (a) which is derived from, or is otherwise attributable to, the use of the service by others, or (b) which may be adversely affected by the use of the service by persons acting on P’s behalf or in a fiduciary capacity in relation to P. (8) For these purposes— (a) if a person is providing a service as a trustee, the persons who are, have been or may be beneficiaries of the trust are to be treated as persons who use, have used or may use the service; (b) a person who deals with another person (“A”) in the course of A providing a service is to be treated as using the service. Issuing certificates(309Z) (1) A relevant recognised body may issue a certificate to a person under this section in relation to a function only if the body is satisfied that the person is a fit and proper person to perform the function. (2) In deciding that question the body must have regard, among other things, to whether the person— (a) has obtained a specified qualification, (b) has undergone, or is undergoing, specified training, (c) possesses a specified level of competence, or (d) has specified personal characteristics. (3) In subsection (2), “specified” means specified in rules made by the appropriate regulator. (4) A certificate issued by a relevant recognised body to a person under this section must— (a) state that the body is satisfied that the person is a fit and proper person to perform the function to which the certificate relates, and (b) set out the aspects of the body’s affairs in which the person will be involved in performing the function. (5) A certificate issued under this section is valid for a period of 12 months beginning with the day on which it is issued. (6) If, after having considered whether a person is a fit and proper person to perform a function, a relevant recognised body decides not to issue a certificate to the person under this section, the body must give the person a notice in writing stating— (a) what steps (if any) the body proposes to take in relation to the person as a result of the decision, and (b) the reasons for proposing to take those steps. (7) A relevant recognised body must maintain a record of every employee who has a valid certificate issued by it under this section. Rules of conductRules of conduct(309Z1) (1) If it appears to the appropriate regulator to be necessary or expedient for the purposes of advancing a relevant objective, the appropriate regulator may make rules about the conduct of the following persons in relation to the performance by them of qualifying functions— (a) persons in relation to whom the appropriate regulator has given its approval under section 309G (“Part 18 approved persons”); (b) directors of relevant recognised bodies; (c) employees of relevant recognised bodies. (2) Rules under subsection (1) may include provision requiring a relevant recognised body to— (a) notify persons mentioned in subsection (1) of the rules that apply to them; (b) take specified steps to secure that such persons understand how those rules apply in relation to them.