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SUP 10A.7 FCA required functions

Apportionment and oversight function (CF8)

SUP 10A.7.1R
  1. (1)

    The apportionment and oversight function is the function of acting in the capacity of a director or senior manager responsible for 4the apportionment function and/or4 the oversight function set out in SYSC 2.1.3R or SYSC 4.4.5R.4

  2. (2)

    The apportionment and oversight function does not apply in relation to a Solvency II firm or a small non-directive insurer5.

    4
SUP 10A.7.2G

In requiring someone to apportion responsibility, neither4 a common platform firm nor a Solvency II firm4 or small non-directive insurer5 should 4apply for that person or persons to be FCA-approved to perform the apportionment and oversight function (see SUP 10A.7.1 R, SYSC 2.1.3 R and SYSC 1 Annex 1).

SUP 10A.7.3G

The fact that there is a person performing the apportionment and oversight function, and who has responsibility for activities subject to regulation by the FCA, may have a bearing on whether a manager who is based overseas will be performing an FCA controlled function. It is a factor to take into account when assessing the likely influence of the overseas manager.

SUP 10A.7.4G

Generally, in relation to a UK establishment of an overseas firm or a firm which is part of an overseas group, where an overseas manager’s responsibilities in relation to the United Kingdom are strategic only, he will not need to be an FCA-approved person. However, where, in accordance with SYSC 3 or SYSC 4 to SYSC 10, he is responsible for implementing that strategy in the United Kingdom, and has not delegated that responsibility to a senior manager in the United Kingdom, he is likely to be performing an FCA controlled function for example, the chief executive function or a PRA controlled function.

SUP 10A.7.5G

A firm carrying on insurance mediation activity, other than a sole trader, must allocate to a director or senior manager the responsibility for the firm's insurance mediation activity (MIPRU 2.2.1 R). MIPRU 2.2.2 R (2) provides that the firm may allocate this responsibility to the person performing the apportionment and oversight function.

SUP 10A.7.6G

Where the person performing the apportionment and oversight function is also responsible for the firm's insurance mediation activity, the words “(insurance mediation)” will be inserted after this FCA controlled function (see MIPRU 2.2.5 G).

SUP 10A.7.7G

As explained in SUP 10A.11 (Minimising overlap with the PRA approved persons regime), the application of the apportionment and oversight function is sometimes disapplied for a PRA-authorised person.

Compliance oversight function (CF10)

SUP 10A.7.8R

The compliance oversight function is the function of acting in the capacity of:2

  1. (1)

    a director or senior manager who is allocated the function set out in SYSC 3.2.8 R,3 SYSC 6.1.4 R (2) or SYSC 6.1.4C R3; or2

    3
  2. (2)

    for a full-scope UK AIFM, a person allocated the function in article 61(3)(b) of the AIFMD level 2 regulation.2

CASS operational oversight function (CF10a)

SUP 10A.7.9R

In relation to a CASS medium firm and a CASS large firm (other than a CASS large debt management firm)3, the CASS operational oversight function is the function of acting in the capacity of a person to whom is allocated the function set out in CASS 1A.3.1A R.

SUP 10A.7.9AR

In relation to a CASS large debt management firm, the CASS operational oversight function is the function of acting in the capacity of a person to whom is allocated the function in CASS 11.3.4 R.

Money laundering reporting function (CF11)

SUP 10A.7.10R

The money laundering reporting function is the function of acting in the capacity of the money laundering reporting officer of a firm.

SUP 10A.7.11G

A firm's obligations in respect of its money laundering reporting officer are set out elsewhere in the Handbook (see SYSC 3.2.6I R and SYSC 6.3.9 R and for their scope, see the application provisions in SYSC 1 Annex 1).

Benchmark submission function (CF40)

SUP 10A.7.12R

1The benchmark submission function is the function of acting in the capacity of a person to whom is allocated the function set out in MAR 8.2.3R (1) (Organisational and governance arrangements).

Benchmark administration function (CF50)

SUP 10A.7.13R

1The benchmark administration function is the function of acting in the capacity of a person to whom is allocated the function set out in MAR 8.3.5R (1) (Requirements for benchmark administrators).

Actuarial conduct function in Solvency II third-country insurance or reinsurance undertakings

SUP 10A.7.14R

4The actuarial conduct function (third country) is that part of the function of acting in the capacity of an actuary appointed (by a Solvency II firm which is a third-country insurance or reinsurance undertaking) under rule 7.1(2) of the PRA Rulebook: Solvency II Firms: Third Country Branches that relates to compliance with FCA requirements and standards under the regulatory system.