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.

31.4

R

The following FCA-prescribed senior management responsibilities do not apply to a full-scope UK AIFM in relation to its managing an AIF:

(1)

responsibility (j) (internal audit oversight);

(2)

responsibility (k) (compliance oversight);

(3)

responsibility (l) (risk oversight);

(4)

responsibility (j-3) (independence of outsourced internal audit); and

(5)

responsibility (t) (business model).

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).

3Solo regulated firms

4.1

R

(1)

The table in SYSC 24 Annex 1 4.2R sets out which FCA-prescribed senior management responsibilities apply to which type of core SMCR firm and enhanced scope SMCR firm.

(2)

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

(a)

UK core SMCR firm;

(b)

overseas core SMCR firm (excluding an EEA SMCR firm); and

(c)

enhanced scope SMCR firm.

4.2

R

Table: FCA-prescribed senior management responsibility applying to solo regulated 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)

√

√

√

Management responsibilities maps

(c)

×

×

√

Internal audit oversight

(j)

×

×

√

Compliance oversight

(k)

×

×

√

Risk oversight

(l)

×

×

√

CASS

(z)

√

√

√

Independence of outsourced internal audit

(j-3)

×

×

√

Business model

(t)

×

×

√

Stress tests

(s)

×

×

√

Allocation of responsibility for COLL compliance to an approved person

(za)

√

√

√

UK risk management

(aa)

×

√

×

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 4.1R. Therefore:

(1) UK core firm (column three) refers to SYSC 24 Annex 1 4.1R(2)(a);

(2) Third country core firm (column four) refers to SYSC 24 Annex 1 4.1R(2)(b); and

(3) Enhanced scope firm (column five) refers to SYSC 24 Annex 1 4.1R(2)(c).