SYSC 22.8 Policies and appointed representatives

Policies and procedures

SYSC 22.8.1RRP

1A firm must establish, implement and maintain policies and procedures that are adequate for the purpose of complying with the obligations in this chapter.

SYSC 22.8.2GRP
  1. (1)

    3 SYSC 22.8.1R does not require a firm to create or keep records that are not required under SYSC 22.9.1R (General record keeping rules) or another rule.

  2. (2)

    (1) applies to a firm whether or not SYSC 22.9.1R applies to it.3

Appointed representatives

SYSC 22.8.3RRP

This chapter applies to a firm’s appointed representatives as well as to the firm.

SYSC 22.8.4RRP

When SYSC 22.8.3R applies to an SMCR firm2, the requirements of this chapter for firms that are not SMCR firms2 apply in place of the requirements that only apply to SMCR firms2. In particular, the following requirements do not apply in relation to an appointed representative:3

  1. (1)

    SYSC 22.2.1R (Obligation to obtain references);3

  2. (2)

    SYSC 22.2.2R(4) (Obligation to give references);3

  3. (3)

    SYSC 22.2.4R to SYSC 22.2.6R (Obligation to revise references);3

  4. (4)

    SYSC 22.4.2R (How to draft the reference);3

  5. (5)

    SYSC 22.7.1R (Intra-group transfers); and3

  6. (6)

    SYSC 22.9.1R (General record keeping rules).3

SYSC 22.8.4AR
  1. (1)

    2The approved person’s authorised approved person employer is responsible for compliance with SYSC 22.8.3R in the case of a requirement:

    1. (a)

      to give a reference about an approved person whose approval is under SUP 10A.1.15R to SUP 10A.1.16BR (Appointed representatives); and3

    2. (b)

      [deleted]3

    3. (c)

      under SYSC 22.2.7R in relation to any such person.

  2. (2)

    In any other case, each principal of the appointed representative in question is responsible for compliance with SYSC 22.8.3R.

  3. (3)

    If another principal of the appointed representative has accepted responsibility for the obligation in SYSC 22.8.3R, that principal is responsible in place of the other firms in (1) or (2).

SYSC 22.8.5GRP

One effect of SYSC 22.8.4R is that when an2 appointed representative appoints an approved person under SUP 10A.1.16BR2 (appointed representatives of an SMCR firm) there is no requirement for the appointed representative or its principal to request a reference.2

SYSC 22.8.6GRP
  1. (1)

    A firm should ensure that its appointed representative gives a reference when another firm (or its appointed representative) asks that appointed representative to give a reference in accordance with this chapter.

  2. (2)

    A firm is not responsible for its appointed representative’s giving references if another principal has accepted responsibility for this.

  3. (3)

    The appointed representative need not give the reference using the template in SYSC 22 Annex 1 (Template for regulatory references given by SMCR firms and disclosure requirements).3

SYSC 22.8.6AG

3If an appointed representative asks a firm for a reference, the firm should give one. The requirements of this chapter apply to the firm in the same way as they would if the appointed representative were a firm.

Getting and giving a reference where the employee has worked in a group or on secondment

SYSC 22.8.7GRP

If:

  1. (1)

    a firm (A) is thinking of employing someone (P);

  2. (2)

    P is employed by a group services company (D) that is not a firm;

  3. (3)

    P (in their capacity as an employee of D) performs a function or service for a firm (B) in the same group as D such that P is also an employee of B; and

  4. (4)

    A intends to appoint (P) to a position that entitles A to obtain a reference from B;

then:

  1. (5)

    (if A is an SMCR firm2) A should ask both B and D for a reference;

  2. (6)

    B is obliged to give the reference if A asks it to (whether or not A is an SMCR firm2);

  3. (7)

    B should ask D to provide it with the information needed to provide a reference in accordance with this chapter;

  4. (8)

    D may give a reference but (as it is not a firm) it is not obliged to; and

  5. (9)

    D and B may give a single joint reference.

SYSC 22.8.8GRP

SYSC 22.8.7G also applies where:

  1. (1)

    D is not in the same group but has seconded P to B; and

  2. (2)

    P (in their capacity as an employee of D) performed any function or services for B such that P was also an employee of B.

SYSC 22.8.9GRP

If:

  1. (1)

    a firm (A) is thinking of appointing someone (P) to a position that entitles A to obtain a reference from another firm (B); and

  2. (2)

    P was an employee of other members of B’s group as well as of B;

then:

  1. (3)

    (if A is an SMCR firm2) A should ask all the group members that employed P for a reference;

  2. (4)

    B should give a reference if A asks it to (whether or not A is an SMCR firm2);

  3. (5)

    P’s employers in that group (including any that are not firms) may give a single joint reference; and

  4. (6)

    if the reference is being provided on a consolidated group basis, it should be clear what information is relevant to which employer within the group.