Related provisions for SYSC 6.3.3
61 - 80 of 89 items.
In
relation to the retention of records for non-MiFID
business, a firm should
have appropriate systems and controls in place with respect to the adequacy
of, access to, and the security of its records so that the firm may
fulfil its regulatory and statutory obligations. With respect to retention
periods, the general principle is that records should be retained for as long
as is relevant for the purposes for which they are made.1
A firm should establish and maintain appropriate systems and controls for the management of operational risks that can arise from employees. In doing so, a firm should have regard to:(1) its operational risk culture, and any variations in this or its human resource management practices, across its operations (including, for example, the extent to which the compliance culture is extended to in-house IT staff);(2) whether the way employees are remunerated exposes the firm to the
1A CASS medium firm and a CASS large firm must allocate to a director or senior manager the function of:(1) oversight of the operational effectiveness of that firm’s systems and controls that are designed to achieve compliance with CASS;(2) reporting to the firm’sgoverning body in respect of that oversight; and(3) completing and submitting a CMAR to the FSA in accordance with SUP 16.14.
(1) A common platform firm and a management company5 must establish, implement and maintain an effective conflicts of interest policy that is set out in writing and is appropriate to the size and organisation of the firm and the nature, scale and complexity of its business.(2) Where the common platform firmor the management company5 is a member of a group, the policy must also take into account any circumstances, of which the firm is or should be aware, which may give rise to
Part 2 of SYSC 1 Annex 1 provides for the application of SYSC 4.1.1 R (General Requirements). In particular, and subject to the provisions on group risk systems and controls requirements in SYSC 12, this means that:(1) in relation to what the Remuneration Code applies to, it:(a) applies in relation to regulated activities, activities that constitute dealing in investments as principal (disregarding the exclusion in article 15 of the Regulated Activities Order (Absence of holding
The FSA may delay the commencement of the period of suspension or restriction.
In deciding whether this is appropriate, the FSA will take into account all the circumstances of a case. Considerations
that may be relevant in respect of an authorised
person include:(1) the impact of the suspension or
restriction on consumers;(2) any practical measures the authorised person needs to take before the period of suspension or restriction
begins, for example, changes to its systems and
(1) 8If the UK firm'sEEA right derives from the Banking Consolidation Directive or10MiFID8,10 the FSA will give the Host State regulator a consent notice within three months unless it has reason to doubt the adequacy of a UK firm's resources or its administrative structure.8 The Host State regulator then has a further two months to notify the applicable provisions (if any) and prepare for the supervision, as appropriate, of the UK firm, or in the case of a MiFID investment firm,
The FSAmay seek to vary a firm's Part IV permission on its own initiative
in certain situations including
the following:(1) If
the FSA determines
that a firm's management, business
or internal controls give rise
to material risks that are not fully addressed by its rules,
the FSAmay
seek to vary
the firm's Part
IV permission and impose an additional requirement or limitation on the firm.(2) If
a firm becomes or is to become
involved with new products or selling practices which
A firm may
operate on the basis of an agency agreement as provided for by CASS 5.2.3 R for
some of its clients and with
protection provided by a client money trust
in accordance with CASS
5.3 or CASS
5.4 for other clients.
A firm may also operate on either
basis for the same client but
in relation to different transactions. A firm which
does so should be satisfied that its administrative systems and controls are
adequate and, in accordance with CASS 5.2.4 G, should ensure that
The following events are examples of events likely to affect an assessment of whether an overseas recognised body is continuing to satisfy the recognition requirements, or to have an effect on competition:(1) significant changes to any relevant law or regulation in its home territory, including laws or regulations:(a) governing exchanges or clearing houses;(b) designed to prevent insider dealing, market manipulation or other forms of market abuse or misconduct;(c) designed to
As part of its business planning and risk management obligations under SYSC, a firm must reverse stress test its business plan; that is, it must carry out stress tests and scenario analyses that test its business plan to failure. To that end, the firm must:(1) identify a range of adverse circumstances which would cause its business plan to become unviable and assess the likelihood that such events could crystallise; and(2) where those tests reveal a risk of business failure that
Business and internal control risks vary from firm to firm, according to the nature and complexity of the business. The FSA's assessment of these risks is reflected in how its rules apply to different categories of firm as well as in the use of its other regulatory tools. One of the tools the FSA has available is to give a firm individual guidance on the application of the requirements or standards under the regulatory system in the firm's particular circumstances.
(1) Principle 10 (Clients’ assets) requires a firm to arrange adequate protection for client's assets when it is responsible for them. As part of these protections, the custody rules require a firm to take appropriate steps to protect safe custody assets for which it is responsible.(2) A prime brokerage firm should not enter into “right to use arrangements” for a client'ssafe custody assets unless:1(a) in the case of a CASS small firm, the person in that firm to whom the responsibilities
The requirement in MCOB 13.3.1 R(2) for a written policy and procedures is intended to ensure that a firm has addressed the need for internal systems to deal fairly with any customer in financial difficulties. MCOB 13.3.1 R(2) does not oblige a firm to provide customers with a copy of the written policy and procedures. Nor, however, does it prevent a firm from providing customers with either these documents or a more customer-orientated version.
(1) The FSA will determine a figure that reflects the seriousness of the breach. In many cases, the amount of revenue generated by a firm from a particular product line or business area is indicative of the harm or potential harm that its breach may cause, and in such cases the FSA will determine a figure which will be based on a percentage of the firm’s revenue from the relevant products or business areas. The FSA also believes that the amount of revenue generated by a firm from
(1) The FSA will determine a figure dependent on the seriousness of the market abuse and whether or not it was referable to the individual’s employment. This reflects the FSA’s view that where an individual has been put into a position where he can commit market abuse because of his employment the fine imposed should reflect this by reference to the gross amount of all benefits derived from that employment.(2) In cases where the market abuse was referable to the individual’s employment,
(1) The information-sharing agreement referred to in COLL 11.4.1R (2) must include:(a) identification of the documents and categories of information which are to be routinely shared between both depositaries, and whether that information or those documents are provided by one depositary to the other or made available on request;(b) the manner and timing, including any applicable deadlines, of the transmission of information by the depositary of the master UCITS to the depositary