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SYSC 1.1A Application

[Note: ESMA has also issued guidelines under article 16(3) of the ESMA Regulation covering:

- various topics relating to automated trading and direct electronic access. See; and

- certain aspects of the MiFID suitability requirements which also deal with the system and control aspects of suitability. See]


1The application of this sourcebook is summarised at a high level in the following table. The detailed application is cut back in SYSC 1 Annex 1 and in the text of each chapter.

Type of firm

Applicable chapters


Chapters 2, 3, 11 to 18, 213

Managing agent

Chapters 2, 3, 11, 12, 18, 213


Chapters 2, 3, 12, 18, 213

Every other firm

Chapters 4 to 12, 18, 19A4, 213


21The provisions in SYSC should be read in conjunction with GEN 2.2.23 R to GEN 2.2.25 G. In particular:

  1. (1)

    Provisions made by both the FCA and PRA may contain obligations for or references to FCA-authorised persons. GEN 2.2.23 R limits the application of those provisions so that the PRA will only apply them in respect of PRA-authorised persons and not to such FCA-authorised persons as are included within the provision.

  2. (2)

    Provisions made by both the FCA and PRA may be applied by both regulators to PRA-authorised persons. Such provisions are applied by each regulator to the extent of its powers and regulatory responsibilities.

SYSC 1.2 Purpose

SYSC 1.2.1 G RP

The purposes of SYSC are:

  1. (1)

    to encourage firms' directors and senior managers to take appropriate practical responsibility for their firms' arrangements on matters likely to be of interest to the appropriate regulator because they impinge on the appropriate regulator's functions under the Act;

  2. (2)

    to increase certainty by amplifying Principle 3, under which a firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems;

  3. (3)

    to encourage firms to vest responsibility for effective and responsible organisation in specific directors and senior managers;1 and2

  4. (4)

    to create a common platform of organisational and systems and controls requirements for all firms.2

  5. (5)


SYSC 1.4 2 4Application of SYSC 11 to SYSC 213


SYSC 1.4.1 G

1The application of each of chapters SYSC 11 to 2SYSC 213 is set out in those chapters and in SYSC 1.4.1A R5.

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SYSC 1.4.1A R RP

5 SYSC 12 , SYSC 19A, , SYSC 20 and SYSC 21 do not apply to a firm in relation to its carrying on of auction regulation bidding.

SYSC 1.4.1B G RP

5Apart from SYSC 12, SYSC 19A, , SYSC 20 and SYSC 21 which are disapplied by SYSC 1.4.1A R, the other chapters of SYSC 11 to SYSC 17 do not apply in relation to a firm's carrying on of auction regulation bidding because they only apply to an insurer. SYSC 18 provides guidance on the Public Interest Disclosure Act.

Actions for damages

SYSC 1.4.2 R RP

A contravention of a rule in SYSC 11 to 2SYSC 213 does not give rise to a right of action by a private person under section 138D of the Act (and each of those rules is specified under section 138D(3) of the Act as a provision giving rise to no such right of action).

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