SYSC 23.2 Definitions and types of firms

Broadly speaking, firms covered by the senior managers and certification regime that are dual-regulated by the FCA and the PRA are divided into two categories:

1. (1)

   Banks and deposit-takers. They are called SMCR banking firms.

2. (2)

   Insurers. They are called SMCR insurance firms.

Broadly speaking, firms covered by the senior managers and certification regime that are regulated by the FCA are divided into three categories:

1. (1)

   Firms regulated by the FCA that do not fall into (2) or (3). They are called core SMCR firms. A large number of firms will be in this category.

2. (2)

   Certain large firms. These are called enhanced scope SMCR firms. Relatively few firms fall into this category.

3. (3)

   Firms whose business is limited to certain types. These are called “limited scope SMCR firms”. A large number of firms will be in this category. The main examples are:

   1. (a)

      limited permission consumer credit firms;

   2. (b)

      an authorised professional firm whose only regulated activities are non-mainstream regulated activities;

   3. (c)

      internally managed AIFs;

   4. (d)

      firms whose main business is not regulated and whose regulated business is (with limited exceptions) restricted to insurance distribution activity in relation to non-investment insurance contracts;

   5. (e)

      a firm that only has regulated claims management activities in its permission;

   6. (f)

      a firm that only has permission for benchmark activities and has the benefit of a waiver treating it as a limited scope SMCR firm as described in SYSC 23 Annex 1 6.12R (Benchmark firms: Waiver applying limited scope status);

   7. (g)

      a firm that only has permission for funeral plan distribution; and

   8. (h)

      a firm that only has permission for regulated pensions dashboard activity and, if applicable, making arrangements with a view to transactions in investments, which has a limitation to activities that are post-view services as permitted under PDCOB 12.