What is a section 178 notice?

Notifications for changes in control are known as Section 178 notices. You should send us a notification as soon as you have made a decision to acquire a control in an authorised firm.

How long does FCA change of control take?

60 working days
The FCA (and, if applicable, PRA) will have 60 working days to assess a change in control case, which will run from the date the regulator(s) acknowledge receipt of a complete notice (and including all supporting documents).

When should firms tell the FCA about a change in control?

FCA Change of Control notifications are known as Section 178 notices. You should notify the FCA as soon as you make the decision to acquire or extend a degree of control in an FCA-regulated firm.

What percentage of shares does an individual need to hold in a firm or parent undertaking in order to be a controller?

Individuals intending to acquire a more than 50% control in an authorised firm must submit a business plan. Until we receive an adequate business plan, the notification will remain incomplete. The minimum requirements for a business plan are set out in the Supporting Documents section of the notification forms.

How do I know if my company is FCA regulated?

You can search the Financial Services Register (the Register) for firms and individuals, and the activities for which firms have permissions. Always check the firm you’re dealing with is listed on the Register. It lists all the firms and current or previously approved individuals involved with regulated activities.

What is a directive firm?

These bands apply to Directive firms, which are classed as: a credit institution as defined in the Banking Consolidation Directive. a Markets in Financial Instruments Directive (MiFID) investment firm. an insurance firm under the Consolidated Life Directive or the First Non-Life Directive.

What constitutes a change of control?

Related Content. Also known as change of control. A provision in an agreement giving a party certain rights (such as consent, payment or termination) in connection with a change in ownership or management of the other party to the agreement.

What constitutes a change in control?

Related Content. Also known as change of control. A provision in an agreement giving a party certain rights (such as consent, payment or termination) in connection with a change in ownership or management of the other party to the agreement. Not all change of control provisions are triggered by the same action.

How do I get FCA approved?

FCA Authorisation Application in 5 Steps

1. Step 1 – establish permission. If the business of the firm involves a regulated activity, then the likelihood is the firm will need to be authorised.
2. Step 2 – strategy and audit.
3. Step 3 – Gather documentation.
4. Step 4 – Work through application.
5. Step 5 – declare and submit.

What qualification is FCA?

The FCA does not dictate which qualifications to take. To become an FCA ‘approved person’, an individual must meet the requirements of the FCA’s ‘fit and proper’ test (a benchmark, not an exam), amongst other stipulations.

What is a non directive insurer?

an insurer which is not a Solvency II firm.

What do you need to know about section 178 notification?

A notification submitted for approval may be rejected. A completed section 178 notification must be in such form, include such information and be accompanied by such documents as the FCA may reasonably require under section 179 of Financial Services and Markets Act 2000.

Where are the notification requirements set out in SUP 11?

The notification requirements are set out in sections 178, 179, 191D and 191E of the Act and holdings which may be disregarded are set out in section 184 of the Act. A summary of the notification requirements described in this section is given in SUP 11 Annex 1.

When to send a notification of change of control?

You should send us a notification as soon as you have made a decision to acquire a control in an authorised firm. Making a decision to acquire could, for example, include circumstances where a proposed controller decides not to take any action to prevent or reduce its increase in control to below the relevant threshold.

When do you have to take action under s191a FSMA?

We will consider whether to object to the transaction and/or whether to take action under s191A FSMA. The only date by which we can guarantee a decision is the end of the statutory assessment period, which is 60 working days from the date we acknowledge a notification as complete.