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CASS 11.3 Responsibility for CASS operational oversight

CASS small debt management firm other than a not-for-profit debt advice body

CASS 11.3.1RRP
  1. (1)

    A CASS small debt management firm, other than a not-for-profit debt advice body, must allocate to a director or senior manager1 responsibility for:1

    1. (a)

      oversight of the firm's operational compliance with CASS 11;1

    2. (b)

      reporting to the firm's governing body in respect of that oversight; and1

    3. (c)

      completing and submitting a CCR005 return in accordance with SUP 16.12.29CR.1

  2. (2)

    A firm that is not an SMCR firm3 must make the allocation in (1) to a director or senior manager approved to perform a significant influence function in relation to that firm.1

CASS 11.3.1AGRP

1CASS 11.3.3G(5) to (11)2 also apply to a CASS small debt management firm that is an SMCR firm3 and the function in CASS 11.3.1R. However:

  1. (1)

    the function in CASS 11.3.1R is not a separate FCA certification function3; and

  2. (2)

    the person performing that function will not necessarily be subject to the employee certification regime described in SYSC 27 (Senior managers and certification regime: Certification regime3).

CASS small debt management firm that is a not-for-profit debt advice body

CASS 11.3.2RRP

A CASS small debt management firm that is a not-for-profit debt advice body must allocate to a director or senior manager:

  1. (1)

    oversight of the firm's operational compliance with CASS 11;

  2. (2)

    reporting to the firm's governing body in respect of that oversight; and

  3. (3)

    completing and submitting a CCR005 return in accordance with SUP 16.12.29C R.

CASS large debt management firm: the CASS operational oversight function (CF10a)

CASS 11.3.3GRP
  1. (1)

    CASS 11.3.4R describes the FCA controlled function known as the CASS operational oversight function (CF10a) in relation to CASS large debt management firms, including not-for-profit debt advice bodies.1

  2. (2)

    As a consequence of CASS 11.3.4R (in conjunction with SUP 10A.4.1R and SUP 10A.7.10R), in a CASS large debt management firm (including a not-for-profit debt advice body fitting into that category) the function described in CASS 11.3.4R is required to be discharged by a director or senior manager.1

  3. (3)

    In the case of a firm that is not an SMCR firm3, the director or senior manager in (2) should be an approved person under the approved persons regime provided for in SUP 10A (FCA Approved Persons)3.

    1
  4. (4)

    However, the CASS operational oversight function does not apply to an SMCR firm3.

    1
  5. (4A)

    3For an SMCR firm, the function in CASS 11.3.4R is not a separate controlled function and performing that function does not require approval as an approved person. Paragraphs (5) to (11) describe how CASS 11.3.4R applies to such firms.

  6. (4B)

    3There are three elements of the regime for SMCR firms that are particularly relevant to CASS 11.3, although they do not all apply to all SMCR firms:

    1. (a)

      a firm’s obligation to allocate certain responsibilities to its SMF managers (see SYSC 24 (Senior managers and certification regime: Allocation of prescribed responsibilities));

    2. (b)

      a firm’s obligation to ensure that one or more of its SMF managers have overall responsibility for each of its activities, business areas and management functions (see SYSC 26 (Senior managers and certification regime: Overall and local responsibility)); and

    3. (c)

      the certification regime (see SYSC 27 (Senior managers and certification regime: Certification regime)).

  7. (5)

    Paragraphs (6) to (9) explain how CASS 11.3.4R applies to an SMCR firm to which SYSC 24 and SYSC 26 apply.3

    1
  8. (6)

    The SMCR firm3 must allocate3 responsibility for the firm’s compliance with CASS to one of its SMF managers (see SYSC 24.2.1R3). That responsibility is an “FCA-prescribed senior management responsibility”. The full list of FCA-prescribed senior management responsibilities is in the table in SYSC 24.2.6R3.

    31
  9. (7)

    Although the CASS function in SYSC 24.2.1R is different from the function in CASS 11.3.4R, the SMCR firm3 may allocate the function in CASS 11.3.4R to the SMF manager in (6).1

  10. (8)

    The SMCR firm3 may allocate the CASS FCA-prescribed senior management responsibility described in (6) to an SMF manager who does not perform any other function coming within the FCA regime for SMF managers in SMCR firms3. See SUP 10C.7 (Other overall responsibility function (SMF18)) and SUP 10C.8.1R (Other local responsibility function (SMF22))3 for details.1

  11. (9)

    The SMCR firm3 may choose to allocate the function in CASS 11.3.4R to someone who is not an approved person and SMF manager. If so:1

    1. (a)

      that person will be subject to the employee certification regime described in SYSC 27 (Senior managers and certification regime: Certification regime3);

      1
    2. (b)

      that person will be subject to supervision by the SMF manager in (6); and1

    3. (c)

      the function in CASS 11.3.4R will be the CASS oversight FCA certification function in SYSC 27.8.1R3.

      31
  12. (10)

    In relation to an SMCR firm to which SYSC 24 applies but SYSC 26 does not apply the guidance in paragraphs (6), (7) and (9) applies, but the guidance in paragraph (8) does not apply.3

    2
  13. (11)
    1. (a)

      The position of an SMCR firm to which neither SYSC 24 nor SYSC 26 apply3 is slightly different.2

    2. (b)

      The firm may choose to allocate the function in CASS 11.3.4R to an SMF manager.2

    3. (c)

      The firm may instead choose to allocate the CASS function to someone who is not an SMF manager.2

    4. (d)

      Where (c) applies, the person performing the function in CASS 11.3.4R will fall into the certification regime. The function in CASS 1A.3.1AR will be the CASS oversight FCA certification function in SYSC 27.8.1R.3

      2
CASS 11.3.4RRP

A CASS large debt management firm must allocate to a director or senior manager the function of:

  1. (1)

    oversight of the operational effectiveness of that CASS debt management firm's systems and controls that are designed to achieve compliance with CASS 11;

  2. (2)

    reporting to the CASS debt management firm's governing body in respect of that oversight; and

  3. (3)

    completing and submitting a CCR005 return to the FCA in accordance with SUP 16.12.29C R.

CASS 11.3.5RRP

If, at the time a CASS debt management firm that is not an SMCR firm3 becomes a CASS large debt management firm in accordance with CASS 11.2.8 R, the firm is not able to comply with CASS 11.3.4 R because it has no director or senior manager who is an approved person in respect of the CASS operational oversight function, the firm must:

1
  1. (1)

    take the necessary steps to ensure that it complies with CASS 11.3.4 R as soon as practicable, which must at least include submitting an application for a candidate in respect of the CASS operational oversight function within 30 business days of the firm becoming a CASS large debt management firm; and

  2. (2)

    until such time as it is able to comply with CASS 11.3.4 R, allocate to a director or senior manager performing a significant-influence function responsibility for:

    1. (a)

      oversight of the firm's operational compliance with CASS 11;

    2. (b)

      reporting to the firm's governing body in respect of that oversight; and

    3. (c)

      completing and submitting a CCR005 return to the FCA in accordance with SUP 16.12.29C R.

CASS 11.3.5AGRP
  1. (1)

    1CASS 11.3.5R provides a grace period for a firm that is not an SMCR firm3 to apply for someone to be approved to perform the CASS operational oversight function.

  2. (2)

    There is no equivalent to CASS 11.3.5R for an SMCR firm3, because a person does not need specific FCA approval before carrying out the function. This is explained in (3) to (5), below.

  3. (3)

    As explained in CASS 11.3.3G, the function in CASS 11.3.5R is not, by itself, a controlled function.

  4. (4)

    Therefore, if an approved person is to perform the function for an SMCR firm3, it can be allocated to any director or senior manager who is already an approved person who is suitable to carry it out. However, if the firm wishes to allocate the function to someone as described in CASS 11.3.3G(8), it will need to get FCA approval before the firm appoints them.3

  5. (5)

    If the function is to be carried out by a certification employee:

    1. (a)

      FCA approval is not needed because performance of a role that falls into the certification regime does not require FCA approval;

    2. (b)

      the firm should:

      1. (i)

        either issue them with a certificate under SYSC 27 (Senior managers and certification regime:3 Certification regime) before the firm becomes a CASS large debt management firm; or

      2. (ii)

        give the function to a suitable approved person pending issue of the certificate.

Record of responsibility for CASS operational oversight

CASS 11.3.6RRP
  1. (1)

    Subject to (2), a CASS debt management firm must make and retain an appropriate record of the person to whom responsibility is allocated in accordance with, as applicable, CASS 11.3.1 R, CASS 11.3.2 R, and CASS 11.3.4 R.

  2. (2)

    A CASS small debt management firm must make and retain such a record only where it allocates responsibility to a person other than the person in that firm who performs the compliance oversight function.

  3. (3)

    A CASS debt management firm must ensure that a record made under this rule is retained for a period of five years after it is made.