SUP 10A.5 Significant-influence functions
What are the FCA significant-influence functions?
The FCA significant-influence functions, which are specified in SUP 10A.4.1 R, comprise the FCA governing functions (SUP 10A.6), the FCA required functions (SUP 10A.7), the systems and controls function (SUP 10A.8) and the significant management function (SUP 10A.9). SUP 10A.5 applies to each of the FCA significant-influence functions.
Definition of FCA significant-influence function
Each FCA significant-influence function is one which comes within the definition of a significant-influence function.
A 1significant-influence function, in relation to the carrying on of a regulated activity by a firm, means a function that is likely to enable the person responsible for its performance to exercise a significant influence on the conduct of the affairs, so far as relating to the activity.1
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Whether an FCA controlled function is likely to result in the person responsible for its performance exercising significant influence on the conduct of the firm's affairs is a question of fact in each case. The FCA has identified the FCA significant-influence functions as satisfying this condition.
Periods of less than 12 weeks
If:
- (1)
a firm appoints an individual to perform a function which, but for this rule, would be an FCA significant-influence function;
- (2)
the appointment is to provide cover for an approved person whose absence is:
- (3)
the appointment is for less than 12 weeks in a consecutive 12-month period;
the description of the relevant FCA significant-influence function does not relate to those activities of that individual.
SUP 10A.5.6 R enables cover to be given for, as an example, holidays and emergencies and avoids the need for the precautionary approval of, for example, a deputy. However, as soon as it becomes apparent that a person will be performing an FCA controlled function for more than 12 weeks, the firm should apply for approval.