In its review, the FSA also proposed extending controlled functions CF1 (director) and CF2 (non-executive director) to those exercising significant influence over authorised firms. This was intended to bring within the approved persons regime those individuals (e.g., directors, non-executive directors and senior managers) who had significant influence over the authorised firm but who were, e.g., employed by the authorised firm's parent undertaking or holding company and potentially outside of the FSA regulatory ambit. The FSA will be implementing this proposal by amending the director and non-executive director controlled function definitions. The definition of the director function will be amended to include a person:
(a) who is a director, partner, officer, member (if the parent undertaking or holding company is a limited liability partnership), senior manager, or employee (other than a non-executive director) of a parent undertaking or holding company (except where that parent undertaking or holding company is an EEA firm); and
(b) whose decisions or actions are regularly taken into account by the governing body of the [authorised] firm".
The definition of the non-executive director function in respect of an authorised firm will also be amended to include a:
non-executive director of a parent undertaking or holding company (except where that parent undertaking or holding company is an EEA firm) whose decisions, or actions are regularly taken into account by the governing body of the [authorised] firm".
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