SUP 10C Annex 1 What functions apply to what type of firm

Part One: Introduction

SUP 10C Annex 1 1.1R

1This annex sets out which FCA controlled function applies to which type of SMCR firm.

SUP 10C Annex 1 1.2G

1If an FCA controlled function is not included in a table for a particular class of firm, that FCA controlled function does not apply to any firm in that class.

SUP 10C Annex 1 1.3G
  1. (1)

    1If one of the tables in this annex shows that an FCA controlled function applies to a type of firm, that function does not necessarily apply to every firm in that class.

  2. (2)

    That may be because of limitations in the description of the function itself. For example, the partner function only applies to partnerships.

  3. (3)

    Another reason would be if the rules defining the FCA controlled function refer to a rule elsewhere in the FCA Handbook and the latter only applies to certain types of firm. For example, SYSC 1 Annex 1 (Detailed application of SYSC) cuts back the application of some of the FCA required functions.2

  4. (4)

    The exclusions in SUP 10C.1 are also relevant.

SUP 10C Annex 1 1.4R

1In the tables in this annex:

  1. (1)

    ✔ means that the FCA controlled function applies; and

  2. (2)

    × means that the FCA controlled function does not apply.

1Part Two

[This part has been left blank deliberately]

1Part Three: Functions applying to banking sector firms

SUP 10C Annex 1 3.1R
  1. (1)

    1The table in SUP 10C Annex 1 3.2R sets out which FCA controlled function applies to which type of SMCR banking firm.

  2. (2)

    SMCR firms in (1) are divided into the following categories for the purposes in (1):

    1. (a)

      a UK SMCR banking firm;

    2. (b)

      an EEA SMCR banking firm; and

    3. (c)

      a third-country SMCR banking firm.

SUP 10C Annex 1 3.2R

1Table: Controlled functions applying to banking firms

(1)

Brief description of function

(2)

Function number

(3)

UK firm

(4)

EEA firm

(5)

Third-country firm

Governing functions

Executive director function

SMF 3

×

Chair of the nomination committee function

SMF 13

×

×

Partner function

SMF 27

×

×

Required functions

Compliance oversight function

SMF 16

×

Money laundering reporting function

SMF 17

Other overall responsibility function

SMF 18

×

×

Other local responsibility function

SMF 22

×

×

Other high-level management functions

EEA branch senior manager function

SMF 21

×

×

Note: The categories of firm in the column headings of this table are to be interpreted in accordance with the classification of firms in SUP 10C Annex 1 3.1R. Therefore:

(1) column three (UK firm) refers to SUP 10C Annex 1 3.1R(2)(a);

(2) column four (EEA firm) refers to SUP 10C Annex 1 3.1R(2)(b); and

(3) column five (Third-country firm) refers to SUP 10C Annex 1 3.1R(2)(c).

1Part Four: Functions applying to insurance sector firms

SUP 10C Annex 1 4.1R
  1. (1)

    1The table in SUP 10C Annex 1 4.2R sets out which FCA controlled function applies to which type of SMCR insurance firm.

  2. (2)

    SMCR firms in (1) are divided into the following categories for the purposes in (1):

    1. (a)

      a Solvency II firm not within any other paragraph of this rule;

    2. (b)

      a Solvency II firm within paragraph (c) of the Glossary definition of Solvency II firm (EEA branch);

    3. (c)

      a Solvency II firm within paragraph (b) of the Glossary definition of Solvency II firm (third country branch);

    4. (d)

      a small non-directive insurer;

    5. (e)

      a firm in SYSC 23 Annex 1 5.2R (firms in run-off); and

    6. (f)

      an insurance special purpose vehicle.

  3. (3)

    An insurance special purpose vehicle only falls into paragraph (2)(f). Subject to that, a firm in (2)(e) does not fall into any other paragraph.

SUP 10C Annex 1 4.2G
SUP 10C Annex 1 4.3R

1Table: Controlled functions applying to insurance sector firms

(1)

Brief description of function

(2)

Function number

(3)

Solvency II and large NDF

(4)

EEA branches

(5)

Third country branches

(6)

Small NDF and other

(7)

ISPV

Governing functions

Executive director function

SMF 3

×

Chair of the nomination committee function

SMF 13

×

×

×

×

Chair of the with-profits committee function

SMF 15

×

×

×

Partner function

SMF 27

×

×

×

Required functions

Compliance oversight function

SMF 16

×

Money laundering reporting function

SMF 17

×

Other overall responsibility function

SMF 18

×

×

×

×

Other local responsibility function

SMF 22

×

×

×

×

Conduct risk oversight (Lloyd’s) function

See Note 2

SMF 23b

×

×

×

×

Other high-level management functions

EEA branch senior manager function

SMF 21

×

×

×

×

Note 1: The categories of firm in the column headings of this table are to be interpreted in accordance with the classification of firms at SUP 10C Annex 1 4.1R. Therefore:

(a) column three (Solvency II and large NDF) refers to SUP 10C Annex 1 4.1R(2)(a);

(b) column four (EEA branches) refers to SUP 10C Annex 1 4.1R(2)(b);

(c) column five (Third country branches) refers to SUP 10C Annex 1 4.1R(2)(c);

(d) column six (Small NDF and other) refers to SUP 10C Annex 1 4.1R(2)(d) and (e); and

(e) column seven (ISPV) refers to SUP 10C Annex 1 4.1R(2)(f).

Note 2: The conduct risk oversight (Lloyd’s) function only applies to the Society.