Authorised firms and close links
Produced in partnership with Orrick, Herrington & Sutcliffe

The following Financial Services practice note produced in partnership with Orrick, Herrington & Sutcliffe provides comprehensive and up to date legal information covering:

  • Authorised firms and close links
  • The UK close links regime
  • The effective supervision threshold condition
  • What are close links?
  • Close links notification requirements
  • Monthly close links reports
  • Event-driven close links notifications
  • Requests for additional information
  • Annual close links reports
  • Who must submit an annual close links report?
  • More...

Authorised firms and close links

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

In the UK, certain relationships and close ties that firms may have are considered to have the potential to affect the way in which a firm is run and could affect consumer outcomes and interfere with effective regulatory supervision. As a result, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have certain powers in relation to close links, aimed at ensuring that adequate supervision of financial services firms can take place. A major driver behind the regime is the prevention of financial crime and market abuse.

This Practice Note provides an overview of the UK close links regime, including the threshold conditions that authorised firms with close links must satisfy to ensure that they can be effectively supervised by the FCA and PRA, and the requirements for firms to keep the FCA and/or PRA informed about their close links on an ongoing basis.

The UK close links

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