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Status: You are viewing the version of the handbook as on 2019-12-18.

SYSC 23.2 Definitions and types of firms

SYSC 23.2.1R

1SYSC 23 Annex 1R (Definition of SMCR firm and different types of SMCR firms) defines:

  1. (1)

    what an SMCR firm is; and

  2. (2)

    what the different types of SMCR firm are.

SYSC 23.2.2G

2Broadly 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.

SYSC 23.2.3G

2Broadly 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; and

    5. (e)

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