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SUP 10C.8A EEA branch senior manager function (SMF21)

SUP 10C.8A.1R

1This section applies to an EEA SMCR firm.

SUP 10C.8A.2R
  1. (1)

    1A person performs the EEA branch senior manager function in relation to the branch in the United Kingdom of an EEA SMCR firm if that person has significant responsibility for one or more significant business units of the branch that carry on any of the activities listed in (2).

  2. (2)

    The activities listed in this paragraph are:

    1. (a)

      designated investment business other than dealing in investments as principal, disregarding article 15 of the Regulated Activities Order;

    2. (b)

      processing confirmations, payments, settlements, insurance claims, client money and similar matters, in so far as this relates to designated investment business;

    3. (c)

      the activity of accepting deposits from banking customers and activities substantially connected to that activity to the extent that it does not fall within (a) or (b), above; and

    4. (d)

      activities that are subject to CASS.

  3. (3)

    In considering whether a person performs the functions in (2), only activities carried on from the branch are relevant.

  4. (4)

    Paragraph (2)(d) only applies in relation to the regulated activities of a firm that are not passported activities as defined in (5) and (6)2.

  5. (5)

    For the purposes of this rule, “passported activities” of an EEA PTV firm means regulated activities that meet the following conditions:2

    1. (a)

      they are included in the permission of the EEA SMCR firm under the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018; and2

    2. (b)

      the firm was entitled to carry them on in the United Kingdom immediately before IP completion day by virtue of section 31(1)(b) or (c) of the Act as it was in force immediately before IP completion day.2

  6. (6)

    For the purposes of this rule, “passported activities” of an EEA SMCR firm also mean regulated activities that were subject to an EEA right applicable to the category of firm into which the EEA SMCR firm falls and which the firm is entitled to carry on in its Home State. For these purposes EEA right has the meaning that it did in Schedule 3 of the Act as it was in force immediately before IP completion day and Home State has the meaning that it did in the Glossary as it was in force immediately before IP completion day.2

SUP 10C.8A.3G
  1. (1)

    1The definition of the EEA branch senior manager function (SMF21) is similar to that of the significant management FCA certification function under SYSC 27.8.4R. However, only the former is an FCA-designated senior management function.

  2. (2)

    The main differences are:

    1. (a)

      SUP 10C.8A.2R(2) is not included in the significant management FCA certification function; and

    2. (b)

      the overriding requirements in SUP 10C.3 (General material about the definition of controlled functions) do not apply to the significant management FCA certification function.

SUP 10C.8A.4G

1A person performing the EEA branch senior manager function could, for example, be:

  1. (1)

    the head of a significant business unit carrying on the activities in SUP 10C.8A.2R(2); or

  2. (2)

    a member of a committee (that is, a person who, together with others, has authority to commit the branch) making decisions about those activities.

EEA branch senior manager function (SMF21): Meaning of “significance”

SUP 10C.8A.5G

1When considering whether a business unit is significant for the purposes of SUP 10C.8A.2R, the firm should take into account all relevant factors in the light of the firm’s current circumstances and its plans for the future, including:

  1. (1)

    the risk profile of that unit;

  2. (2)

    its use or commitment of the firm’s capital;

  3. (3)

    its contribution to the profit and loss account;

  4. (4)

    the number of employees or approved persons working in the business unit;

  5. (5)

    the number of customers; and

  6. (6)

    any other factor which makes the unit significant to the conduct of the branch’s affairs.