SUP 10.8 Systems and control functions
Finance function (CF13)
The finance function is the function of acting in the capacity of a senior manager with responsibility for reporting to the governing body of a firm in relation to its financial affairs.
This function is often performed by a senior manager who is given the title of Financial Controller, Chief Finance Officer or Finance Officer. The individual may also be given the title of Finance Director but, if he is a director of the company, he should be approved to perform the director function (and not the finance function). The fact that an individual may use one of these titles does not necessarily mean that he is performing a controlled function.
Risk assessment function (CF14)
The risk assessment function is the function of acting in the capacity of a senior manager with responsibility for reporting to the governing body of a firm in relation to setting and controlling its risk exposure.
Depending on the scale, nature and complexity of its business it may be appropriate for a firm to have a separate risk assessment function: see SYSC 3.2.10 G.
This function is often performed by a senior manager who is given the title of Head of Risk, or who is a member of a Risk Committee. Other examples of titles are Head of Credit Risk and Head of Market Risk (but the fact that an individual may use one of these titles does not necessarily mean that he is performing a controlled function).1
Internal audit function (CF15)
The internal audit function is the function of acting in the capacity of a senior manager with responsibility for reporting to the governing body, or the audit committee (or its equivalent), of a firm in relation to its adherence to internal systems and controls, procedures and policies.
Depending on the scale, nature and complexity of its business it may be appropriate for a firm to have a separate internal audit function: see SYSC 3.2.16 G. If it does, this will not require the person performing the function to have any special obligation towards the FSA (such as reporting directly on matters to the FSA) nor will this cause the FSA to call for all internal audit reports as a matter of routine.
This function is often performed by a senior manager who is given the title of Head of Internal Audit or Internal Auditor (but the fact that an individual may use one of these titles does not necessarily mean that he is performing a controlled function).