SYSC 4.6 Management responsibilities maps for non-UK relevant authorised persons1

EEA relevant authorised persons and third-country relevant authorised persons are referred to as non-UK relevant authorised persons.

1. (1)

   This section sets out the rules about management responsibilities maps for branches maintained in the United Kingdom by:

   1. (a)

      third-country relevant authorised persons (see SYSC 4.6.6R to SYSC 4.6.14G and SYSC 4.6.29G);

   2. (b)

      EEA relevant authorised persons (see SYSC 4.6.15R to SYSC 4.6.28G and SYSC 4.6.29G).

2. (2)

   This section is not intended to extend the application of the common platform requirements to matters which are reserved by an EU instrument to the firm’s Home State regulator in relation to EEA relevant authorised persons.

1. (1)

   One purpose of the management responsibilities map for third country relevant authorised persons is to help the firm and the FCA satisfy themselves that the branch has a clear organisational structure (as required by SYSC, where applicable).

2. (2)

   It also helps the FCA to identify who it needs to speak to about particular issues and who is accountable if something goes wrong.

1. (1)

   The management responsibilities map should be consistent with the statements of responsibilities.

2. (2)

   The statements of responsibilities and the management responsibilities map should all be prepared in a way that makes it simple to see how the responsibilities allocated in a particular statement of responsibilities fit into the overall system of management and governance of the firm.

The management responsibilities map for a branch maintained by a third-country relevant authorised person should include functions that are:

1. (1)

   included in a PRA controlled function under SUP 10C.9 (Minimising overlap with the PRA approved persons regime); or

2. (2)

   excluded from the other local responsibility function under SUP 10C.8.1R (Exclusion for approved person with approval to perform other designated senior management functions).

1. (1)

   The management responsibilities map is an important support to the FCA’s functions as Host State competent authority.

2. (2)

   Having requirements and powers that apply directly to individuals helps to make the requirements on firms that the FCA is required or entitled to impose as Host State competent authority more effective.

3. (3)

   The management responsibilities map helps the FCA to operate its powers and requirements for individuals. For example it helps the FCA:

   1. (a)

      to identify who is accountable if something goes wrong;

   2. (b)

      to understand the role of the approved person (or candidate) in the branch and therefore to judge how to use its powers under the approved persons regime, such as the power to grant or refuse approval.

4. (4)

   By helping the FCA to better understand how the branch is structured, the management responsibilities map also helps the FCA to carry out more effective supervision of conduct of business, money laundering and other Host State responsibilities.

Information contained in SYSC 4.6.20R(1) and (2) covers:

1. (1)

   details about the branch contained in the notice given by the firm’s Home State competent authority as part of the process for establishing the branch in the United Kingdom; and

2. (2)

   any updates to that information under the EEA Passport Rights Regulations.

The management responsibilities map of an EEA relevant authorised person may therefore consist of information:

1. (1)

   that has changed since its requisite details were supplied or were last changed; or

2. (2)

   that is not covered in the firm’s Home State competent authority’s passport notification.

The FCA expects that an EEA relevant authorised person that excludes information from its management responsibilities map under SYSC 4.6.20R will identify in its management responsibilities map the documents supplied to the FCA or the PRA where the omitted information can be found.

In practice an EEA relevant authorised person may find it easier to prepare its management responsibilities map without omitting any information under SYSC 4.6.20R so that all the information referred to in SYSC 4.6.15R to SYSC 4.6.19R can be found in a single integrated document.

SYSC 4.6.27G and SYSC 4.6.28G do not take into account the right of a firm to omit information under SYSC 4.6.20R. They assume that the firm will prepare a single document under SYSC 4.6.24G. However SYSC 4.6.27G and SYSC 4.6.28G are not intended to take away the right to omit information under SYSC 4.6.20R.

1. (1)

   The management responsibilities map should be consistent with the statements of responsibilities.

2. (2)

   The statements of responsibilities and the management responsibilities map should be prepared in a way that makes it simple to see how the responsibilities allocated in a particular statement of responsibilities fit into the overall system of management and governance of the branch.

1. (1)

   This provision gives guidance on specific aspects of SYSC 4.6.16R and SYSC 4.6.18R.

2. (2)

   A firm need only include summary details of the persons in SYSC 4.6.18R(1).

3. (3)

   A branch’s SMF managers and members of its governing body or equivalent may overlap with its senior management and senior personnel. If so, the firm does not have to give the same details twice.

4. (4)

   A firm should include details of individuals in addition to those in SYSC 4.6.18R(1) if they are needed to make the management responsibilities map clear. For example, it may be necessary to include these details if the same individual has responsibilities in a number of different areas of the branch.

5. (5)

   A firm should only include summary details about statements of responsibilities under SYSC 4.6.18R(2). There is no need to duplicate the statements of responsibilities.

6. (6)

   If any designated senior management function is performed by more than one person, a firm’s management responsibilities map should give details of how the performance or discharge of the responsibilities is to be carried out by those persons.

7. (7)

   The guidance below applies to EEA relevant authorised persons subject to the modifications in (8):

   1. (a)

      SYSC 4.5.15G (Single document);

   2. (b)

      SYSC 4.5.21G to SYSC 4.5.22G (Records).

8. (8)

   Unless the context otherwise requires, any reference in the guidance in (7) to:

   1. (a)

      the firm should be treated as a reference to the branch:

   2. (b)

      the reference to SYSC 4.5.13G in SYSC 4.5.15G(5) should be treated as a reference to SYSC 4.6.29G.

1. (1)

   The guidance in this paragraph applies to EEA relevant authorised persons and third-country relevant authorised persons.

2. (2)

   The FCA expects that the management responsibilities map of a small and non-complex branch is likely to be simple and short. It may be no more than a single sheet of paper.

3. (3)

   A branch is likely to be small and non-complex if it:

   1. (a)

      conducts a limited number of simple business lines; and

   2. (b)

      does not rely on group governance arrangements or on governance arrangements for other parts of the firm.