SUP 10A.7 FCA required functions
Apportionment and oversight function (CF8)
The apportionment and oversight function is the function of acting in the capacity of a director or senior manager responsible for either or both of the apportionment function and the oversight function set out in SYSC 2.1.3 R or SYSC 4.4.5 R.
In requiring someone to apportion responsibility, a common platform firm should not apply 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).
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.
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.
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.
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).
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)
The compliance oversight function is the function of acting in the capacity of:2
- (1)
a director or senior manager who is allocated the function set out in SYSC 3.2.8 R or SYSC 6.1.4 R (2); or2
- (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)
In relation to a CASS medium firm and a CASS large firm, 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.
Money laundering reporting function (CF11)
The money laundering reporting function is the function of acting in the capacity of the money laundering reporting officer of a firm.
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)
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)
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).