SUP 10A.8 Systems and controls functions
Systems and controls function (CF28)
The systems and controls function is the function of acting in the capacity of an employee of the firm with responsibility for reporting to the governing body of a firm, or the audit committee (or its equivalent) in relation to:
- (1)
its financial affairs;
- (2)
setting and controlling its risk exposure (see SYSC 3.2.10 G and SYSC 7.1.6 R);
- (3)
adherence to internal systems and controls, procedures and policies (see SYSC 3.2.16 G and SYSC 6.2).
The systems and controls function does not apply in relation to bidding in emissions auctions carried on by a firm that is exempt from MiFID under article 2(1)(i).
The systems and controls function does not apply in relation to a PRA-authorised person. PRA approval is required instead.
Where an employee performs the systems and controls function the FCA would expect the firm to ensure that the employee had sufficient expertise and authority to perform that function effectively. A director or senior manager would meet this expectation.