CASS 11.3 Responsibility for CASS operational oversight

1CASS 11.3.3G(5) to (11)2 also apply to a CASS small debt management firm that is an SMCR firm3 and the function in CASS 11.3.1R. However:

1. (1)

   the function in CASS 11.3.1R is not a separate FCA certification function3; and

2. (2)

   the person performing that function will not necessarily be subject to the employee certification regime described in SYSC 27 (Senior managers and certification regime: Certification regime3).

1. (1)

   4CASS 11.3.3G(5) to (11) do not apply to a CASS small debt management firm that is a not-for-profit debt advice body. This is because neither SYSC 24 (Senior managers and certification regime: Allocation of prescribed responsibilities) nor SYSC 26 (Senior managers and certification regime: Overall and local responsibility) apply to it.

2. (2)

   It will not have any SMF managers as no designated senior management functions apply to it.

3. (3)

   The function in CASS 11.3.2R is not a separate FCA certification function and the person performing that function will not necessarily be subject to the employee certification regime described in SYSC 27 (Senior managers and certification regime: Certification Regime).

1. (1)

   [deleted]4

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2. (2)

   As a consequence of CASS 11.3.4R4, in a CASS large debt management firm (including a not-for-profit debt advice body fitting into that category) the function described in CASS 11.3.4R is required to be discharged by a director or senior manager.1

3. (3)

   [deleted]4

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4. (4)

   [deleted]4

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5. (4A)

   3For an SMCR firm, the function in CASS 11.3.4R is not a separate controlled function and performing that function does not require approval as an approved person. Paragraphs (5) to (11) describe how CASS 11.3.4R applies to such firms.

6. (4B)

   3There are three elements of the regime for SMCR firms that are particularly relevant to CASS 11.3, although they do not all apply to all SMCR firms:

   1. (a)

      a firm’s obligation to allocate certain responsibilities to its SMF managers (see SYSC 24 (Senior managers and certification regime: Allocation of prescribed responsibilities));

   2. (b)

      a firm’s obligation to ensure that one or more of its SMF managers have overall responsibility for each of its activities, business areas and management functions (see SYSC 26 (Senior managers and certification regime: Overall and local responsibility)); and

   3. (c)

      the certification regime (see SYSC 27 (Senior managers and certification regime: Certification regime)).

7. (5)

   Paragraphs (6) to (9) explain how CASS 11.3.4R applies to an SMCR firm to which SYSC 24 and SYSC 26 apply.3

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8. (6)

   The SMCR firm3 must allocate3 responsibility for the firm’s compliance with CASS to one of its SMF managers (see SYSC 24.2.1R3). That responsibility is an “FCA-prescribed senior management responsibility”. The full list of FCA-prescribed senior management responsibilities is in the table in SYSC 24.2.6R3.

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9. (7)

   Although the CASS function in SYSC 24.2.1R is different from the function in CASS 11.3.4R, the SMCR firm3 may allocate the function in CASS 11.3.4R to the SMF manager in (6).1

10. (8)

    The SMCR firm3 may allocate the CASS FCA-prescribed senior management responsibility described in (6) to an SMF manager who does not perform any other function coming within the FCA regime for SMF managers in SMCR firms3. See SUP 10C.7 (Other overall responsibility function (SMF18)) and SUP 10C.8.1R (Other local responsibility function (SMF22))3 for details.1

11. (9)

    The SMCR firm3 may choose to allocate the function in CASS 11.3.4R to someone who is not an approved person and SMF manager. If so:1

    1. (a)

       that person will be subject to the employee certification regime described in SYSC 27 (Senior managers and certification regime: Certification regime3);

       1
    2. (b)

       that person will be subject to supervision by the SMF manager in (6); and1

    3. (c)

       the function in CASS 11.3.4R will be the CASS oversight FCA certification function in SYSC 27.8.1R3.

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12. (10)

    In relation to an SMCR firm to which SYSC 24 applies but SYSC 26 does not apply the guidance in paragraphs (6), (7) and (9) applies, but the guidance in paragraph (8) does not apply.3

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13. (11)
    1. (a)

       The position of an SMCR firm to which neither SYSC 24 nor SYSC 26 apply3 is slightly different.2

    2. (b)

       The firm may choose to allocate the function in CASS 11.3.4R to an SMF manager.2

    3. (c)

       The firm may instead choose to allocate the CASS function to someone who is not an SMF manager.2

    4. (d)

       Where (c) applies, the person performing the function in CASS 11.3.4R will fall into the certification regime. The function in CASS 1A.3.1AR will be the CASS oversight FCA certification function in SYSC 27.8.1R.3

       2
    5. (e)

       A not-for-profit debt advice body will not have any SMF managers as no controlled functions apply to it.4