SYSC 1.5 Significant SYSC firm

1A firm is a significant SYSC firm if it meets one or more of the following conditions:

1. (1)

   its total assets exceed £530 million;

2. (2)

   its total liabilities exceed £380 million;

3. (3)

   the annual fees and commission income it receives in relation to the regulated activities carried on by the firm exceeds £160 million in the 12-month period immediately preceding the date the firm carries out the assessment under this rule;

4. (4)

   the client money that it receives or holds exceeds £425 million; and

5. (5)

   the assets belonging to its clients that it holds in the course of, or in connection with, its regulated activities exceeds £7.8 billion.

1. (1)

   1This rule defines some of the terms used in SYSC 1.5.2R.

2. (2)

   “Total assets” means the firm’s total assets:

   1. (a)

      as set out in the most recent relevant report submitted to the FCA under SUP 16.12 (Integrated Regulatory Reporting); or

   2. (b)

      (where the firm carries out the assessment under SYSC 1.5.4R at any time after the date of its most recent report in (a)) as the firm would report to the FCA in accordance with the relevant report, as if the reporting period for that report ended on the date of the assessment.

3. (3)

   “Total liabilities” means the firm’s total liabilities:

   1. (a)

      as set out in the most recent relevant report submitted to the FCA under SUP 16.12 (Integrated Regulatory Reporting); or

   2. (b)

      (where the firm carries out the assessment under SYSC 1.5.4R at any time after the date of its most recent report in (a)) as the firm would report to the FCA in accordance with the relevant report, as if the reporting period for that report ended on the date of the assessment.

4. (4)

   “client money” means client money that a firm receives or holds in the course of, or in connection with, all of the regulated activities that it carries on:

   1. (a)

      as set out in the most recent client money and client asset report submitted to the FCA under SUP 16.12 (Integrated Regulatory Reporting); or

   2. (b)

      (where the firm carries out the assessment under SYSC 1.5.4R at any time after the date of its most recent report in (a)) as the firm would report to the FCA in accordance with the relevant report, as if the reporting period for that report ended on the date of the assessment.

5. (5)

   “Assets belonging to its clients” means the assets to which the custody rules apply:

   1. (a)

      as set out in the most recent client money and client asset report submitted to the FCA under SUP 16.12 (Integrated Regulatory Reporting); or

   2. (b)

      (if the firm carries out the assessment under SYSC 1.5.4R at any time after the date of its most recent report in (a)) as the firm would report to the FCA in accordance with the relevant report, as if the reporting period for that report ends on the date the assessment is carried out.

1A firm must assess regularly whether it becomes a significant SYSC firm.

1. (1)

   1If a firm, at any time, becomes aware that it is likely to become a significant SYSC firm, it must forthwith make arrangements to establish and have in place sound, effective and comprehensive strategies, processes and systems to achieve compliance with the requirements that apply to a significant SYSC firm.

2. (2)

   The firm in (1) must comply with the requirements that apply to a significant SYSC firm on the expiry of a period of 3 months from the date it meets any one of the conditions in SYSC 1.5.2R.

1If a firm that is a significant SYSC firm ceases to meet any of the conditions in SYSC 1.5.2R, it must continue to comply with the rules and requirements applicable to a significant SYSC firm until the first anniversary of the date on which the firm ceased to be a significant SYSC firm.