SYSC 23.2 Definitions and types of firms
1SYSC 23 Annex 1R (Definition of SMCR firm and different types of SMCR firms) defines:
2Broadly speaking, firms covered by the senior managers and certification regime that are dual-regulated by the FCA and the PRA are divided into two categories:
- (1)
Banks and deposit-takers. They are called SMCR banking firms.
- (2)
Insurers. They are called SMCR insurance firms.
2Broadly speaking, firms covered by the senior managers and certification regime that are regulated by the FCA are divided into three categories:
- (1)
Firms regulated by the FCA that do not fall into (2) or (3). They are called core SMCR firms. A large number of firms will be in this category.
- (2)
Certain large firms. These are called enhanced scope SMCR firms. Relatively few firms fall into this category.
- (3)
Firms whose business is limited to certain types. These are called “limited scope SMCR firms”. A large number of firms will be in this category. The main examples are:
- (a)
limited permission consumer credit firms;
- (b)
an authorised professional firm whose only regulated activities are non-mainstream regulated activities;
- (c)
internally managed AIFs;
- (d)
firms whose main business is not regulated and whose regulated business is (with limited exceptions) restricted to insurance distribution activity in relation to non-investment insurance contracts; 3
- (e)
a firm that only has regulated claims management activities in its permission;3
4 - (f)
a firm that only has permission for benchmark activities and has the benefit of a waiver treating it as a limited scope SMCR firm as described in SYSC 23 Annex 1 6.12R (Benchmark firms: Waiver applying limited scope status); and 4 3
- (g)
4a firm that only has permission for funeral plan distribution.
- (a)