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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)

    [deleted]4

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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 11.3.2AG
  1. (1)

    4CASS 11.3.3G(5) to (11) do not apply to a CASS small debt management firm that is a not-for-profit debt advice body. This is because neither SYSC 24 (Senior managers and certification regime: Allocation of prescribed responsibilities) nor SYSC 26 (Senior managers and certification regime: Overall and local responsibility) apply to it.

  2. (2)

    It will not have any SMF managers as no designated senior management functions apply to it.

  3. (3)

    The function in CASS 11.3.2R is not a separate FCA certification function and 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 Regime).

CASS large debt management firms

CASS 11.3.3GRP
  1. (1)

    [deleted]4

    1
  2. (2)

    As a consequence of CASS 11.3.4R4, 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)

    [deleted]4

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  4. (4)

    [deleted]4

    13
  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
    5. (e)

      4A not-for-profit debt advice body will not have any SMF managers as no controlled functions apply to it.

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
13

[deleted]4

CASS 11.3.5AGRP

[deleted]4

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.