SYSC 26.2 Purpose

1The purpose of this chapter is to ensure, together with the equivalent PRA requirements and the requirements about FCA-prescribed senior management responsibilities in SYSC 24 (Senior managers and certification regime: Allocation of prescribed responsibilities), that:

1. (1)

   an SMF manager is responsible and accountable for every area of a firm’s activities;

2. (2)

   the allocation of responsibilities is done systematically and explicitly; and

3. (3)

   the process of allocation of responsibilities under this chapter covers every part of a firm’s activities, business areas and management functions (subject to the exclusions in SYSC 26.4 (Exclusions) without any gaps in what is allocated in this process.

1The purpose of this chapter is not primarily to ensure that formal responsibility for everything a firm does is allocated amongst its senior management. Even without the requirements of this chapter, responsibilities that have not been allocated explicitly would fall to the chief executive by default. However, one of the purposes of this chapter is to avoid responsibilities being allocated by implication or by default.

1. (1)

   1The allocation of responsibilities under this chapter does not replace the responsibilities of the chief executive.

2. (2)

   If a firm allocates responsibilities under this chapter to an SMF manager other than the chief executive, the chief executive will be responsible for managing that person’s performance of those responsibilities in the same way that the chief executive manages that person’s other responsibilities.

3. (3)

   A firm may allocate responsibilities under this chapter to the chief executive.