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  2. Point in time
    2020-03-04

SYSC 25.9 Handover procedures and material

Application

SYSC 25.9.1R

1This section applies to a firm that meets the following conditions:

  1. (1)

    it falls within SYSC 25.1.1R (Application and purpose); and

  2. (2)

    it falls within one of the following categories:

    1. (a)

      it is a UK SMCR firm; or

    2. (b)

      it is a third-country SMCR banking firm.

SYSC 25.9.2R

1For third-country SMCR banking firms, references in this section to an SMF manager are references to the SMF manager when acting as an SMF manager for the firm’s branch in the United Kingdom.

SYSC 25.9.3

2This section does not apply to a full-scope UK AIFM in relation to its managing an AIF.

Rules about handover material

SYSC 25.9.4R

1A firm must take all reasonable steps to ensure that:

  1. (1)

    a person who is becoming an SMF manager;

  2. (2)

    an SMF manager:

    1. (a)

      taking on a new job or new responsibilities; or

    2. (b)

      whose responsibilities or job are being changed; and

  3. (3)

    anyone who has management or supervisory responsibilities for the SMF manager in (1) or (2);

has, when the SMF manager starts to perform their new or revised responsibilities or job, all information and material that a person in (1) to (3) could reasonably expect to have to perform those responsibilities or that job effectively and in accordance with the requirements of the regulatory system.

SYSC 25.9.5R
  1. (1)

    1A firm must have a policy about how it complies with SYSC 25.9.4R, including the systems and controls it uses.

  2. (2)

    A firm must make and maintain adequate records of the steps taken to comply with SYSC 25.9.4R.

SYSC 25.9.6G

1The information and material in SYSC 25.9.4R that should be made available includes details:

  1. (1)

    about unresolved or possible breaches of the requirements of the regulatory system; and

  2. (2)

    of any unresolved concerns expressed by the FCA, the PRA or another regulatory body.

SYSC 25.9.7G
  1. (1)

    1The main purpose of SYSC 25.9.4R is to help the SMF manager with their new or revised responsibilities or job and to help the managers of SMF managers.

  2. (2)

    The information and material should be practical and helpful and not just a record.

  3. (3)

    The material should include an assessment of what issues should be prioritised.

  4. (4)

    The information and material should include judgement and opinion, not just facts and figures.

Handover arrangements and certificates

SYSC 25.9.8G
  1. (1)

    1Where the responsibilities or job in SYSC 25.9.4R are being taken over from another person, the firm should have arrangements for an orderly transition.

  2. (2)

    As part of these arrangements, the firm should take reasonable steps to ensure that the predecessor contributes to the information and material in SYSC 25.9.4R all that would be reasonable to expect the predecessor to know and consider relevant, including the predecessor’s opinions.

  3. (3)

    One way of doing this could be for the predecessor to prepare a handover certificate.

  4. (4)

    However, the FCA accepts that there will be cases in which it will be impractical to ask the predecessor to prepare a handover certificate.

Application of this section to other parts of a firm’s management

SYSC 25.9.9G

1A firm should consider whether to apply the procedures in this section to other parts of its management.