Business areas and
management functions |
Explanation |
(1) Payment services |
This means: (1) payment services; (2) issuing and administering other means of
payment (for example, cheques and bankers'
drafts); (3) issuing electronic money; and (4) current accounts. |
(2) Settlement |
This means clearing and settlement of any
transactions described in rows (3) and (6) to (9)
of this annex, in relation to the assets covered by (9). It also includes clearing and settlement of any
transactions described in row (10). |
(3) Investment management |
This has the same meaning as managing
investments with the following adjustments: (a) it covers all types of assets; and (b) the exclusions in the Regulated Activities
Order do not apply. It also covers fund management. |
(4) Financial or investment
advice |
This includes advising on investments. |
(5) Mortgage advice |
This has the same meaning as advising on
regulated mortgage contracts but is expanded to
cover land anywhere in the world and to cover
security of any kind over land. |
(6) Corporate investments |
This means acquiring, holding, managing and
disposing a firm's investments made for its own
account. |
(7) Wholesale sales |
This means the selling of any investment to a
person other than a retail customer. It does not include the activities in (1). |
(8) Retail sales |
This means the selling of any investment to a
retail customer. It includes savings accounts. It does not include
the activities in (1). |
(9) Trading for clients |
This means dealing in investments as agent and
execution of orders on behalf of clients but the
list of products includes money market
instruments and foreign exchange. |
(10) Market making |
This has the same meaning as it does in MIFID
(see the definition of market maker in article
4.1(8)). |
(11) Investment research |
|
(12) Origination/syndication
and underwriting |
Origination and syndication include: (1) entering into or acquiring (directly or
indirectly) any commitment or investment with a view to transferring some or all of it to others,
or with a view to others investing in the same
transaction; (2) sub-participation; and (3) any transaction described in the Glossary
definition of originator. Underwriting includes underwriting that is not
on a firm commitment basis. A commitment or investment includes an
economic interest in some or all of it. This activity also includes the provision of
services relating to such transactions. |
(13) Retail lending decisions |
Deciding whether, and on what terms, to lend to
retail customers. Lending includes granting credit, leasing and
hire (including finance leasing). |
(14) Wholesale lending
decisions |
Deciding whether, and on what terms, to lend to
persons who are not retail customers. Lending includes granting credit, leasing and
hire (including finance leasing). |
(15) Design and
manufacturing of products
intended for wholesale
customers |
Wholesale customers mean persons who are not
retail customers |
(16) Design and manufacture
of products intended for retail
customers |
|
(17) Production and
distribution of marketing
materials and
communications |
This includes financial promotions |
(18) Customer service |
This means dealing with clients after the point
of sale, including queries and fulfilment of
client requests |
(19) Customer complaints
handling |
This includes the firm's compliance with DISP. It also includes: (1) any similar procedures relating to activities
that do not come under the jurisdiction of the
Financial Ombudsman Service; (2) activities that take place outside the UK; and (3) activities that are not subject to any
ombudsman service. |
(20) Collection and
recovering amounts owed to a
firm by its customers Dealing with customers in
arrears |
‘Customer’ means any person falling into any
of the definitions of client in the Glossary so far
as they apply to the FCA's Handbook. The
definition is extended to cover all services
provided by the firm and not just those that are
provided in the course of carrying on a
regulated activity or an ancillary service. |
(21) Middle office |
This means risk management and controls in
relation to, and accounting for, transactions in
securities or derivatives |
(22) The firm's information
technology |
|
(23) Business continuity
planning |
This means the functions described in SYSC
4.1.6R and SYSC 4.1.7R |
(24) Human resources |
This includes recruitment, training and
competence and performance monitoring |
(25) Incentive schemes for
the firm's staff |
This is not limited to schemes based on sales. |
(26) Providing information in
relation to a specified
benchmark |
|
(27) Administering a
specified benchmark |
|
Note (1): The purpose of this annex is explained in SYSC 4.5 (Management
responsibilities maps for UK2 relevant authorised persons) and SYSC 4.7.37G. This annex is also referred to in SYSC 4.6 (Management responsibilities maps for non-UK relevant authorised persons) and SYSC 4.8 (Senior management responsibilities for third-country relevant authorised persons: allocation of responsibilities) (see SYSC 4.6.14 and SYSC 4.8.35).2 |
Note (2): A firm does not have to use the split of activities in this annex for the
purposes in Note (1). If a firm does decide to use it, it may adapt it to suit its
management arrangements better. For example, a firm may find the split of activities into retail and wholesale
activities unsuitable. If so, the firm might: (a) treat retail and wholesale activities together; or (b) use its own definition of retail and wholesale activities. |
