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SYSC 1.1A Application

[Note: ESMA has also issued guidelines under article 16(3) of the ESMA Regulation covering:

- various topics relating to automated trading and direct electronic access. See

http://www.esma.europa.eu/sites/default/files/library/2015/11/esma_2012_122_en.pdf; and

- certain aspects of the MiFID suitability requirements which also deal with the system and control aspects of suitability. See http://www.esma.europa.eu/sites/default/files/library/2015/11/2012-387_en.pdf.]

SYSC 1.1A.1GRP

1The application of this sourcebook is summarised at a high level in the following table. The detailed application is cut back in SYSC 1 Annex 1 and in the text of each chapter.

Type of firm

Applicable chapters

Insurer

Chapters 2, 3, 12 5 to 18, 213

5

Managing agent

Chapters 2, 3, 11, 12, 18, 213

Society

Chapters 2, 3, 12, 18, 213

Every other firm

Chapters 4 to 12, 18, 19D, 216

6244636

Firms that SYSC 19D applies to should also refer to the Remuneration part of the PRA Rulebook.

SYSC 1.1A.1AGRP

6The application of this sourcebook to firms that are not PRA-authorised persons is summarised at a high level in the following table. The detailed application is cut back in SYSC 1 Annex 1 and in the text of each chapter.

Type of firm

Applicable chapters

Full-scope UK AIFM

Chapter 19B, 21

BIPRU firm (including a third-country BIPRU firm)

Chapters 4 to 10, 12, 18, 19C, 21

IFPRU investment firm (including an overseas firm that would have been an IFPRU investment firm if it had been a UK domestic firm)

Chapters 4 to 10, 12, 18, 19A, 21

SYSC 1.1A.2GRP

21The provisions in SYSC should be read in conjunction with GEN 2.2.23 R to GEN 2.2.25 G. In particular:

  1. (1)

    Provisions made by both the FCA and PRA may contain obligations for or references to FCA-authorised persons. GEN 2.2.23 R limits the application of those provisions so that the PRA will only apply them in respect of PRA-authorised persons and not to such FCA-authorised persons as are included within the provision.

  2. (2)

    Provisions made by both the FCA and PRA may be applied by both regulators to PRA-authorised persons. Such provisions are applied by each regulator to the extent of its powers and regulatory responsibilities. This general principle also applies where the PRA have made rules in the PRA Rulebook for Solvency II firms which overlap with those in SYSC.5

  3. (3)

    5For Solvency II firms, the FCA considers that the requirements and guidance in Chapters 2, 3, 12 to 18 and 21 of SYSC are not inconsistent with: 7

    5
    1. (a)

      the parts of the PRA Rulebook implementing the governance provisions in the Solvency II Directive (articles 40 to 49);7

    2. (b)

      the Solvency II Regulation (EU) 2015/35 of 10 October 2014 (articles 258 to 275), or7

    3. (c)

      EIOPA guidelines on systems of governance dated 28 January 2015.7

    In most cases, there is no direct overlap with those provisions because the SYSC requirements are directed at FCA conduct requirements not expressly covered by or under the Solvency II Directive. Where there is a direct overlap with SYSC rules and guidance, the FCA will take the Solvency II Directive derived requirements and guidelines 7into account and will interpret the SYSCrules and guidance in a way that avoids inconsistency.