SYSC 24 Annex 1 Which FCA-prescribed senior management responsibilities apply to which kind of firm

1Introduction and exclusions

1.1

G

This annex sets out which FCA-prescribed senior management responsibilities apply to which type of SMCR firm.

1.2

R

In this annex:

(1)

a √ means that the FCA-prescribed senior management responsibility does apply;

(2)

a × means that the FCA-prescribed senior management responsibility does not apply; and

(3)

a reference letter refers to the reference letters in column (3) of the table in SYSC 24.2.6R (Table: FCA-prescribed senior management responsibilities).

1.3

G

If an FCA-prescribed senior management responsibility is not included in the table for a particular class of firm, that FCA-prescribed senior management responsibility does not apply to any firm in that class.

Banking sector firms

2.1

R

(1)

The table in SYSC 24 Annex 1 2.3R sets out which FCA-prescribed senior management responsibilities apply to which type of SMCR banking firm.

(2)

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

(a)

a UK SMCR banking firm (excluding firms in (b));

(b)

a small UK SMCR banking firm; and

(c)

a third-country SMCR banking firm.

2.2

R

A small UK SMCR banking firm means a UK SMCR banking firm that is:

(1)

a small CRR firm as defined in the part of the PRA Rulebook called “Allocation of responsibilities”; or

(2)

a credit union.

2.3

R

Table: FCA-prescribed senior management responsibilities applying to banking sector firms

Responsibility for the firm’s performance of its obligations under the senior managers regime

(a)

√

√

√

Responsibility for the firm’s performance of its obligations under the employee certification regime

(b)

√

√

√

Financial crime

(d)

√

√

√

COCON

(b-1)

√

√

√

Training governing body

(f)

√

×

×

Training of staff performing designated senior management responsibilities

See Note (2)

(g)

√

×

×

Management responsibilities maps

(c)

√

√

√

Whistleblowers’ champion

(n)

√

√

×

Internal audit oversight

(j)

√

×

×

Compliance oversight

(k)

√

×

×

Risk oversight

(l)

√

×

×

Remuneration

(m)

√

×

×

CASS

(z)

√

√

√

UK risk management

(aa)

×

×

√

Compliance with UK regulatory system

(ff)

×

×

√

Escalation of correspondence

(ee)

×

×

√

Note (1): the categories of firm in the column headings of this table are to be interpreted in accordance with the classification of firms in SYSC 24 Annex 1 2.1R. Therefore:

(a) column three (UK firm) refers to SYSC 24 Annex 1 2.1R(2)(a);

(b) column four (Small UK firm) refers to SYSC 24 Annex 1 2.1R(2)(b); and

(c) column five (Third-country firm) refers to SYSC 24 Annex 1 2.1R(2)(c).

Note (2): Paragraph (b) of this FCA-prescribed senior management responsibility (key function holder) does not apply to any firm in this table.

Insurance sector firms

3.1

R

(1)

The table in SYSC 24 Annex 1 3.2R sets out which FCA-prescribed senior management responsibilities apply to which type of SMCR insurance firm.

(2)

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

(a)

a Solvency II firm (excluding firms in any other paragraph);

(b)

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

(c)

a small non-directive insurer;

(d)

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

(e)

an insurance special purpose vehicle.

(3)

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

3.2

G

References to a Solvency II firm include a large non-directive insurer.

3.3

R

Table: FCA-prescribed senior management responsibility applying to insurance sector firms

Responsibility for the firm’s performance of its obligations under the senior managers regime

(a)

√

√

√

√

Responsibility for the firm’s performance of its obligations under the employee certification regime

(b)

√

√

√

√

Financial crime

(d)

√

√

√

√

COCON

(b-1)

√

√

√

√

Training governing body

(f)

√

×

×

×

Training of staff performing designated senior management responsibilities

(g)

√

×

×

×

Management responsibilities maps

(c)

√

√

×

×

Whistleblowers’ champion

(n)

√

×

×

×

CASS

(z)

√

√

√

×

Internal audit for non-significant insurers

(j-2)

√

×

×

×

Compliance with UK regulatory system

(ff)

×

√

×

×

Escalation of correspondence

(ee)

×

√

×

×

Note: The categories of firm in the column headings of this table are to be interpreted in accordance with the classification of firms in SYSC 24 Annex 1 3.1R. Therefore:

(1) Solvency II firm (column three) refers to SYSC 24 Annex 1 3.1R(2)(a);

(2) Third country branches (column four) refers to SYSC 24 Annex 1 3.1R(2)(b);

(3) Other insurance sector (column five) refers to SYSC 24 Annex 1 3.1R(2)(c) and (d); and

(4) ISPV (column six) refers to SYSC 24 Annex 1 3.1R(2)(e).