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You are viewing the version of the document as on 2023-12-15.

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    2023-12-15

SYSC 27.7 Specification of functions

General requirements

SYSC 27.7.1R

1In accordance with section 63E of the Act (Certification of employees by authorised persons), a function is an FCA certification function only if, in relation to the carrying on of a regulated activity by a firm, that function:

  1. (1)

    is not a controlled function in relation to the carrying on of that regulated activity by that firm; and

  2. (2)

    will require the person performing it to be involved in one or more aspects of the firm’s affairs, so far as relating to that regulated activity.

Scope: FCA certification functions

SYSC 27.7.2R

1In accordance with section 63E(3) of the Act, the functions in the table in SYSC 27.7.3R are FCA certification functions.

SYSC 27.7.3R

1Table: FCA certification functions

Function

Where defined

(1) CASS oversight

SYSC 27.8.1R

(2) Proprietary trader

SYSC 27.8.3R

(3) Significant management

SYSC 27.8.4R

(4) Functions requiring qualifications

SYSC 27.8.10R

(5) Managers of certification employees

SYSC 27.8.13R

(6) Material risk takers

SYSC 27.8.14R

(7) Client-dealing

SYSC 27.8.18R

(8) Algorithmic trading

SYSC 27.8.23R

SYSC 27.7.4G
  1. (1)

    1If a function falls into more than one of the FCA certification functions in the table in SYSC 27.7.3R, all of those FCA certification functions apply to it.

  2. (2)

    For example, if a person’s job involves both FCA certification function (4) (functions requiring qualifications) and (6) (material risk takers), the emergency appointments rule (SYSC 27.5.1R) does not apply to that job.

  3. (3)

    Another example is the rule about the territorial scope of this section (SYSC 27.3.1R)) for a UK SMCR firm. For example, if a person’s job involves both FCA certification function (4) (functions requiring qualifications) and (6) (material risk takers), the territorial restriction in that rule does not apply to that job. Instead, this chapter applies without any territorial limitation.

  4. (4)

    The reason for (3) is that SYSC 27.3.1R(3) says that there is no territorial limitation on FCA certification function (6) for a UK SMCR firm. As explained in (1), it does not matter that the job also involves FCA certification function (4), to which the territorial limitation does apply.

Overlap with designated senior management functions

SYSC 27.7.5G
  1. (1)

    2SYSC 27.7.1R(1) means that an FCA-designated senior management function cannot also be an FCA certification function at the same time.

  2. (2)

    So an SMF manager performing an activity that forms part of their FCA-designated senior management function is not, by performing that activity, also performing an FCA certification function.

  3. (3)

    But if an FCA-designated senior management function does not apply to a firm, performing the function described in the definition of that FCA-designated senior management function can be an FCA certification function.

  4. (4)

    2See SYSC 27.8.7AG for an example of this.