SIFA 7.2 Controlled Functions

The full list of controlled functions can be found under SUP 10.4.5 R. The functions with most relevance to small firms are likely to be the:

• governing functions (CF 1-7) e.g. director, chief executive, partner, sole trader;
• required functions (CF 8-12) e.g. apportionment and oversight, compliance officer, money laundering reporting officer; and
• customer functions (CF 21-27) e.g. investment adviser.

The most common controlled customer functions in smaller investment intermediaries are CF21 (Investment adviser function) and CF22 (Investment adviser trainee function). But some may also have functions CF23 (Corporate finance adviser function), CF24 (Pension transfer specialist function), and CF27 (Investment management function).

The 'governing functions' and the 'required functions' are also known as 'significant influence functions' because the persons performing these functions are likely to exercise significant influence over the business.

SYSC 2.1.3 R provides that a firm must allocate to an individual (usually the chief executive) the functions of apportioning responsibilities and of overseeing the establishment and maintenance of systems and controls. SYSC 3.2.8 R provides that a firm must allocate to a director or senior manager the function of overseeing the firm's compliance. The Money Laundering Sourcebook (ML) provides that a firm must have a money laundering reporting officer (unless it is a sole trader with no employees).

The number of approved persons carrying out controlled functions CF21-27 registered by a firm is a factor in the level of fees the firm pays.