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M2G 2.2 MiFID I implementation and SYSC

M2G 2.2.1G

1The main Handbook sourcebook for implementing the MiFID requirements in relation to the management body, general organisational requirements, conflicts of interest and whistleblowing is SYSC. As regards the obligations on the management body, general organisational requirements and conflicts of interest, the corresponding requirements in MiFID I were implemented using the ‘common platform’. The common platform requirements in SYSC 4 to 10 covered the following areas:

  1. ● SYSC 4 (General organisational requirements including persons who effectively direct the business and responsibility of senior personnel);

  2. ● SYSC 5 (Employees, agents and other relevant persons);

  3. ● SYSC 6 (Compliance, internal audit and financial crime);

  4. ● SYSC 7 (Risk control);

  5. ● SYSC 8 (Outsourcing);

  6. ● SYSC 9 (Record-keeping);

  7. ● SYSC 10 (Conflicts of interest).

M2G 2.2.2G

1The common platform was initially devised to ensure that a single set of requirements apply to firms subject to MiFID and CRD, as opposed to similar, but different, regulatory requirements arising from these Directives being imposed upon the same business functions. A unified set of requirements is simpler and more cohesive for firms, and was supported in consultation responses. The common platform requirements in SYSC 4-10 were then adapted and extended to non-MiFID firms, including investment advisers and arrangers subject to the article 3 MiFID exemption. The adaptation of the common platform requirements took the form of applying various rules as guidance to these firms, as set out in the application tables in SYSC 1 Annex 1 Part 3.