SUP 10A.7 FCA required functions
Apportionment and oversight function (CF8)
- (1)
The apportionment and oversight function is the function of acting in the capacity of a director or senior manager responsible for 4the apportionment function and/or4 the oversight function set out in SYSC 2.1.3R or SYSC 4.4.5R.4
- (2)
The apportionment and oversight function does not apply in relation to a Solvency II firm or a small non-directive insurer5.
4
In requiring someone to apportion responsibility, neither4 a common platform firm nor a Solvency II firm4 or small non-directive insurer5 should 4apply for that person or persons to be FCA-approved to perform the apportionment and oversight function (see SUP 10A.7.1 R, SYSC 2.1.3 R and SYSC 1 Annex 1).
The fact that there is a person performing the apportionment and oversight function, and who has responsibility for activities subject to regulation by the FCA, may have a bearing on whether a manager who is based overseas will be performing an FCA controlled function. It is a factor to take into account when assessing the likely influence of the overseas manager.
Generally, in relation to a UK establishment of an overseas firm or a firm which is part of an overseas group, where an overseas manager’s responsibilities in relation to the United Kingdom are strategic only, he will not need to be an FCA-approved person. However, where, in accordance with SYSC 3 or SYSC 4 to SYSC 10, he is responsible for implementing that strategy in the United Kingdom, and has not delegated that responsibility to a senior manager in the United Kingdom, he is likely to be performing an FCA controlled function for example, the chief executive function or a PRA controlled function.
A firm carrying on insurance distribution activity7, other than a sole trader, must allocate to a director or senior manager the responsibility for the firm's insurance distribution activity7 (MIPRU 2.2.1 R). MIPRU 2.2.2 R (2) provides that the firm may allocate this responsibility to the person performing the apportionment and oversight function.
Where the person performing the apportionment and oversight function is also responsible for the firm's insurance distribution activity7, the words “(insurance distribution7)” will be inserted after this FCA controlled function (see MIPRU 2.2.5 G).
As explained in SUP 10A.11 (Minimising overlap with the PRA approved persons regime), the application of the apportionment and oversight function is sometimes disapplied for a PRA-authorised person.
Compliance oversight function (CF10)
The compliance oversight function is the function of acting in the capacity of:2
- (1)
a director or senior manager who is allocated the function set out in:6
3332- (a)
SYSC 3.2.8R; or6
- (b)
SYSC 6.1.4R(2); or6
- (c)
article 22(3) of the MiFID Org Regulation; or6
- (d)
article 22(3) of the MiFID Org Regulation (as applied in accordance with SYSC 1 Annex 1 2.8AR, SYSC 1 Annex 1 3.2-AR, SYSC 1 Annex 1 3.2-BR, SYSC 1 Annex 1 3.2CR and SYSC 1 Annex 1 3.3R); or6
- (e)
SYSC 6.1.4CR; or6
- (a)
- (2)
for a full-scope UK AIFM, a person allocated the function in article 61(3)(b) of the AIFMD level 2 regulation.2
CASS operational oversight function (CF10a)
In relation to a CASS medium firm and a CASS large firm (other than a CASS large debt management firm)3, the CASS operational oversight function is the function of acting in the capacity of a person to whom is allocated the function set out in CASS 1A.3.1A R.
In relation to a CASS large debt management firm, the CASS operational oversight function is the function of acting in the capacity of a person to whom is allocated the function in CASS 11.3.4 R.
Money laundering reporting function (CF11)
The money laundering reporting function is the function of acting in the capacity of the money laundering reporting officer of a firm.
A firm's obligations in respect of its money laundering reporting officer are set out elsewhere in the Handbook (see SYSC 3.2.6I R and SYSC 6.3.9 R and for their scope, see the application provisions in SYSC 1 Annex 1).
Actuarial conduct function in Solvency II third-country insurance or reinsurance undertakings
4The actuarial conduct function (third country) is that part of the function of acting in the capacity of an actuary appointed (by a Solvency II firm which is a third-country insurance or reinsurance undertaking) under rule 7.1(2) of the PRA Rulebook: Solvency II Firms: Third Country Branches that relates to compliance with FCA requirements and standards under the regulatory system.