The Bank may designate a controlled function as a pre-approval controlled function for regulated financial service providers or holding companies either by regulations or by written notice. Regulations may prescribe functions by reference to the capacity to exercise a significant influence on an entity’s affairs; the Bank may identify functions by commonly used titles. Prescription may be informed by reporting lines and must be warranted by the size or complexity of the entity and necessary or prudent to verify compliance with relevant obligations.

Persons taken to exercise significant influence include directors, the chief executive, the secretary and those who report directly to them; where prescribed, partners and natural persons who are regulated financial service providers are included. The Bank may define classes of entities by common characteristics (for example business type, balance sheet size or turnover), may make these regulations in the same instrument as section 20, and may declare a pre-approval controlled function by written notice where the person is concerned in management, the function is not prescribed and no other person performs such a function.