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SYSC 4.9 1Handover procedures and material

Application

SYSC 4.9.1R
  1. (1)

    This section applies to UK relevant authorised persons and to third-country relevant authorised persons.2

  2. (2)

    For third-country relevant authorised persons, references in this section to an SMF manager are references to the SMF manager when acting as an SMF manager for the firm’s branch in the United Kingdom.2

SYSC 4.9.2R

There is no territorial limitation on the application of this section.

SYSC 4.9.3R

This section is not limited to regulated activities or other specific types of activities.

Rules about handover material

SYSC 4.9.4R

A firm must take all reasonable steps to ensure that:

  1. (1)

    a person who is becoming an SMF manager;

  2. (2)

    an SMF manager:

    1. (a)

      taking on a new job or new responsibilities; or

    2. (b)

      whose responsibilities or job are being changed; and

  3. (3)

    anyone who has management or supervisory responsibilities for the SMF manager in (1) or (2);

  4. has, when the SMF manager starts to perform his new or revised responsibilities or job, all information and material that a person in (1) to (3) could reasonably expect to have to perform those responsibilities or that job effectively and in accordance with the requirements of the regulatory system.

SYSC 4.9.5R
  1. (1)

    A firm must have a policy about how it complies with SYSC 4.9.4R, including the systems and controls it uses.

  2. (2)

    A firm must make and maintain adequate records of the steps taken to comply with SYSC 4.9.4R.

SYSC 4.9.6G

The information and material in SYSC 4.9.4R that should be made available includes details:

  1. (1)

    about unresolved or possible breaches of the requirements of the regulatory system; and

  2. (2)

    of any unresolved concerns expressed by the FCA, the PRA or another regulatory body.

SYSC 4.9.7G
  1. (1)

    The main purpose of SYSC 4.9.4R is to help the SMF manager with his new or revised responsibilities or job and to help the managers of SMF managers.

  2. (2)

    It should be a practical and helpful document and not just a record.

  3. (3)

    The material should include an assessment of what issues should be prioritised.

  4. (4)

    It should include judgement and opinion, not just facts and figures.

Handover arrangements and certificates

SYSC 4.9.8G
  1. (1)

    Where the responsibilities or job in SYSC 4.9.4R are being taken over from another person, the firm should have arrangements for an orderly transition.

  2. (2)

    As part of these arrangements, the firm should take reasonable steps to ensure that the predecessor contributes to the information and material in SYSC 4.9.4R all that would be reasonable to expect the predecessor to know and consider relevant, including the predecessor’s opinions.

  3. (3)

    One way of doing this could be for the predecessor to prepare a handover certificate.

  4. (4)

    However, the FCA accepts that there will be cases in which it will be impractical to ask the predecessor to prepare a handover certificate.

Application of this section to other parts of a firm’s management

SYSC 4.9.9G

A firm should consider whether to apply the procedures in this section to other parts of its management.