SYSC 3.1 Systems and Controls

1. (1)

   The nature and extent of the systems and controls which a firm will need to maintain under SYSC 3.1.1 R will depend upon a variety of factors including:

   1. (a)

      the nature, scale and complexity of its business;

   2. (b)

      the diversity of its operations, including geographical diversity;

   3. (c)

      the volume and size of its transactions; and

   4. (d)

      the degree of risk associated with each area of its operation.

2. (2)

   To enable it to comply with its obligation to maintain appropriate systems and controls, a firm should carry out a regular review of them.

3. (3)

   The areas typically covered by the systems and controls referred to in SYSC 3.1.1 R are those identified in SYSC 3.2. Detailed requirements regarding systems and controls relevant to particular business areas or particular types of firm are covered elsewhere in the Handbook.

Where the Combined Code developed by the Committee on Corporate Governance is relevant to a firm, the FSA, in considering whether the firm's obligations under SYSC 3.1.1 R have been met, will give it due credit for following corresponding provisions in the Codeand related guidance.

A firm has specific responsibilities regarding its appointed representatives (see SUP 12).

SYSC 2.1.3 R (2) prescribes how a firm must allocate the function of overseeing the establishment and maintenance of systems and controls described in SYSC 3.1.1 R.