The definition of the FCA’s remunerations code is more complicated than you might expect.
The remunerated activities that the FICA remunerators may be paid for include those in the following categories:The FCA defines its remunerative activities as those in which a company or its officers and employees “act for or on behalf of a corporation or other entity” or “act in the interest of a person, firm or other organization.”
In other words, the FACA includes a variety of activities that are “generally considered to be in the public interest” such as promoting public welfare and protecting and enhancing the public health, safety and welfare.
The definition also includes “the performance of services for a company, including but not limited to the provision of services to individuals, businesses, and other organizations.”
The FICA does not specify the remuneratory activities that can be performed by its agents or employees, and the definition does not distinguish between a director and a “subordinate” of a director.
It’s likely that the only remunerable activities performed by an FCA agent or employee are those directly connected to the performance of the duties of the director.
The FACA definition of “act” is quite broad, so there are many definitions of the word “act.”
For example, it can be used to mean “actuate or participate in an activity for a client or for another person, or to promote the interest or benefit of a client,” or it can mean “directly contribute to, supervise, or control the performance or achievement of any function or activity.”
In the example above, the “direct contribution” definition of act means “to contribute or undertake the performance, acquisition, control, or development of a property or other property in exchange for a consideration or consideration in kind.”
The “promote” definition would include anything that promotes the interest, welfare, or benefit (or those of a party) of a company’s clients, employees, or others.
There are other definitions, too.
In general, it is a common practice for a financial institution or a company to provide services to clients.
For example and in no particular order, financial institutions and companies may provide a financial advisor to clients, or they may provide services through other companies, or it may be the case that a financial intermediary may also provide financial services.
Financial institutions, companies, and intermediaries may be considered “agents” for purposes of the definition of a remunerating activity, and “subordinates” for the purposes of remunerrating activities.
It’s also possible for a finance firm to be paid by its client as part of the fee it receives from the client.
This is a significant aspect of the remit of a financial services company, because it means that a client has a financial stake in the financial performance of that company.
For example, if a company receives money from a client for performing a remittance, the client has the right to sue the financial institution and recover money from the financial institutions remunerater.
The FACA defines a remitting entity as “any person or entity that performs any financial activity on behalf or on a behalf of another person or entities.”
It’s important to remember that these definitions are merely examples.
A company may not be paid directly by a client, nor by a financial entity, nor a bank.
Rather, it may or may not “act on behalf” of its client.
For more on the FCTA, see this FCTP report.