Related provisions for REC 3.18.4
Table: FCA-prescribed senior management responsibilities
FCA-prescribed senior management responsibility |
Explanation |
Equivalent PRA-prescribed senior management responsibility |
Part One (applies to all firms) |
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(1) Responsibility for the firm's performance of its obligations under the senior management regime |
The senior management regime means the requirements of the regulatory system applying to relevant authorised persons insofar as they relate to SMF managers performing designated senior management functions, including SUP 10C (FCA senior management regime for approved persons in relevant authorised persons). This responsibility includes: (1) compliance with conditions and time limits on approval; (2) compliance with the requirements about the statements of responsibilities (but not the allocation of responsibilities recorded in them);4 (3) compliance by the firm with its obligations under section 60A of the Act (Vetting of candidates by relevant authorised persons); and4 4(4) compliance by the firm with the requirements in SYSC 22 (Regulatory references) so far as they relate to the senior management regime, including the giving of references to another firm about an SMF manager or former SMF manager. |
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(2) Responsibility for the firm's performance of its obligations under the employee certification regime |
The employee certification regime means the requirements of sections 63E and 63F of the Act (Certification of employees) and all other requirements of the regulatory system about the matters dealt with in those sections, including:4 4(1) SYSC 5.2 (Certification Regime); 4(2) the requirements in SYSC 22 (Regulatory references) so far as they relate to the employee certification regime, including the giving of references to another firm about a certification employee or former certification employee; and |
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(3) Responsibility for compliance with the requirements of the regulatory system about the management responsibilities map |
This responsibility does not include allocating responsibilities recorded in it |
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(4) Overall responsibility for the firm's policies and procedures for countering the risk that the firm might be used to further financial crime |
(1)2 This includes the function in SYSC 6.3.8R (firm must allocate to a director or senior manager overall responsibility within the firm for the establishment and maintenance of effective anti-money laundering systems and controls), if that rule applies to the firm. (2)2 The firm may allocate this FCA-prescribed senior management responsibility to the MLRO but does not have to. (3)2 If the firm does not allocate this FCA-prescribed senior management responsibility to the MLRO, this FCA-prescribed senior management responsibility includes responsibility for supervision of the MLRO. |
None |
2(4A) Acting as the firm’swhistleblowers’ champion |
The whistleblowers’ champion’s allocated responsibilities are set out in SYSC 18.4.4R |
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Part Two (applies to all firms except for small CRR firms and credit unions) |
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(5) Responsibility for: (a) leading the development of; and (b) monitoring the effective implementation of; policies and procedures for the induction, training and professional development of all members of the firm'sgoverning body. |
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(6) Responsibility for monitoring the effective implementation of policies and procedures for the induction, training and professional development of all persons performing designated senior management functions on behalf of the firm other than members of the governing body. |
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(7) Responsibility for: (a) safeguarding the independence of; and (b) oversight of the performance of; the internal audit function, in accordance with SYSC 6.2 (Internal Audit) or article 24 of the MiFID Org Regulation.5 |
This responsibility includes responsibility for: (a) safeguarding the independence of; and (b) oversight of the performance of; a person approved to perform the PRA's Head of Internal Audit designated senior management function for the firm. |
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(8) Responsibility for: (a) safeguarding the independence of; and (b) oversight of the performance of; the compliance function in accordance with SYSC 6.1 (Compliance) or article 22 of the MiFID Org Regulation5. |
This responsibility includes responsibility for: (a) safeguarding the independence of; and (b) oversight of the performance of; the person performing the compliance oversight function for the firm. |
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(9) Responsibility for: (a) safeguarding the independence of; and (b) oversight of the performance of; the risk function, in accordance with SYSC 7.1.21R and SYSC 7.1.22R (Risk control). |
This responsibility includes responsibility for: (a) safeguarding the independence of; and (b) oversight of the performance of; a person approved to perform the PRA's Chief Risk designated senior management function for the firm. |
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(10) Responsibility for overseeing the development of and implementation of the firm's remuneration policies and practices in accordance with SYSC 19D (Remuneration Code) |
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Part Three (applies in specified circumstances) |
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(11) Overall responsibility for the firm's compliance with CASS |
(A) This responsibility only applies to a firm to which CASS applies. (B) A firm may include in this FCA-prescribed senior management responsibility whichever of the following functions apply to the firm: (a) CASS 1A.3.1R (certain CASS compliance functions for a CASS small firm); (b) CASS 1A.3.1AR (certain CASS compliance functions for a CASS medium firm or a CASS large firm); (c) CASS 11.3.1R (certain CASS compliance functions for certain CASS small debt management firms); or (d) CASS 11.3.4R (certain CASS compliance functions for a CASS large debt management firm); but it does not have to. (C) If the firm does not include the functions in (B) in this FCA-prescribed senior management responsibility, this FCA-prescribed senior management responsibility includes responsibility for supervision of the person performing the functions in (B) that apply to the firm. |
None |
Allocation of overall responsibility for a firm’s activities, business areas and management functions
The applicable data items referred to in SUP 16.12.4 R are set out according to firm type in the table below:
Description of data item |
45Firms' prudential category and applicable data items(note 1) |
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Firmsother thanBIPRU firms or IFPRU investment firms |
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IPRU(INV)Chapter 3 |
IPRU(INV)Chapter 5 |
IPRU(INV)Chapter 9 |
IPRU(INV)Chapter 13 |
38 | ||||
Solvency statement |
No standard format (note 11) |
No standard format (note 20) |
No standard format (note 11) |
38 | ||||
Balance sheet |
FSA001/FINREP (note 36) |
FSA001 (Note 2) |
FSA029 (note 18) |
FSA029 |
FSA029 |
FSA029 (note 15) or Section A RMAR (note 15) |
38 | |
Income statement |
FSA00250/FINREP (note 36) 50 |
FSA002 (Note 2) |
FSA030 (note 18) |
FSA030 |
FSA030 |
FSA030 (note 15) or Section B RMAR (note 15) |
38 | |
Capital adequacy |
COREP (Note 36) |
FSA003 (Note 2) |
FSA033 (note 18) |
FSA034 or FSA035 or FIN07152 (note 14) |
FSA031 |
FSA032 (note 15) or Section D162 RMAR (note 15) 5050 |
38 | |
Supplementary capital data for collective portfolio management investment firms |
FIN067 (Note 35) |
FIN068 (Note 35) |
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Credit risk |
COREP (Note 36) |
FSA004 (Notes 2, 3) |
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Market risk |
COREP (Note 36) |
FSA005 (Notes 2, 4) |
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Market risk - supplementary |
FSA006 (note 5) |
FSA006 (Note 5) |
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Operational risk |
COREP (Note 36) |
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Large exposures |
COREP (Note 36) |
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Exposures between core UK group and non-core large exposures group |
FSA018 (note 12) |
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Solo consolidation data |
FSA016 (note 25) |
FSA016 (Note 25) |
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Pillar 2 questionnaire |
FSA019 (note 8) |
FSA019 (Note 8) |
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Non-EEA sub-group |
COREP (Note 36) |
FSA028 (Note 9) |
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Threshold conditions |
Section F RMAR (Note 15) |
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Client money and client assets |
FSA039 |
FSA039 |
FSA039 (note 18) |
FSA039 |
FSA039 |
Section C RMAR (Note 15) or FSA039 |
38 | |
CFTC |
FSA040 (note 24) |
FSA040 (Note 24) |
FSA040 (note 24) |
FSA040 (note 24) |
FSA040 (note 24) |
FSA040 (note 24) |
38 | |
IRB portfolio risk |
FSA045 (note 22) |
FSA045 (Note 22) |
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Securitisation: non-trading book |
COREP (Note 36) |
FSA046 (Note 23) |
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Daily Flows |
FSA047/COREP (Notes 26, 29 , 31, 33, and 36) |
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Enhanced Mismatch Report |
FSA048/COREP (Notes 26, 29 , 31, 33, and 36) |
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Liquidity Buffer Qualifying Securities |
FSA050/COREP (Notes 27, 30, 31, 33, and 36) |
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Funding Concentration |
FSA051/COREP (Notes 27, 30, 31, 33, and 36) |
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Pricing data |
FSA052/COREP (Notes 27, 31, 33, 34, and 36) |
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Retail and corporate funding |
FSA053/COREP (Notes 27, 30, 31, 33, and 36) |
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Currency Analysis |
FSA054/COREP (Notes 27, 30, 31, 33, and 36) |
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Systems and Controls Questionnaire |
FSA055/COREP (Notes 28, 33, and 36) |
FSA055 (Notes 28 and 33) |
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Securitisation: trading book |
COREP (Note 36) |
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46Liquidity Questionnaire |
MLA-M (Note 37) |
MLA-M (Note 37) |
MLA-M (Note 37) |
MLA-M (Note 37) |
MLA-M (Note 37) |
MLA-M (Note 37) |
MLA-M (Note 37) |
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Note 1 |
All firms, except IFPRU investment firms in relation to data items reported under the EU CRR, when submitting the completed data item required, a firm must use the format of the data item set out in SUP 16 Annex 24. Guidance notes for completion of the data items are contained in SUP 16 Annex 25. |
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Note 2 |
Firms that are members of a UK consolidation group are also required to submit this report on a UK consolidation group basis. |
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Note 3 |
This applies to a firm that is required to submit data item FSA003 and, at any time within the 12 months up to its latest accounting reference date ("the relevant period"), was reporting data item FSA004 ("Firm A") or not reporting this item ("Firm B"). In the case of Firm A it must report this data item if one or both of its last two submissions in the relevant period show that the threshold was exceeded. In the case of Firm B it must report this item if both the last two submissions in the relevant period show that the threshold has been exceeded. The threshold is exceeded where data element 77A in data item FSA003 is greater than £10 million, or its currency equivalent, at the relevant reporting date for the firm. |
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Note 4 |
This applies to a firm that is required to submit data item FSA003 and, at anytime within the 12 months up to its latest accounting reference date ("the relevant period"), was reporting data item FSA005 ("Firm A") or not reporting this item ("Firm B"). In the case of Firm A it must report this data item if one or both of its last two submissions in the relevant period show that the threshold was exceeded. In the case of Firm B it must report this item if both the last two submissions in the relevant period show that the threshold has been exceeded. The threshold is exceeded where data element 93A in data item FSA003 is greater than £50 million, or its currency equivalent, at the relevant reporting date for the firm. |
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Note 5 |
Only applicable to firms with a VaR model permission. |
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Note 6 |
[deleted] |
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Note 7 |
[deleted] |
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Note 8 |
Only applicable to IFPRU investment firms and BIPRU firms that: (a) are subject to consolidated supervision under BIPRU 8, except those that are either included within the consolidated supervision of a group that includes a UK credit institution, or that have been granted an investment firm consolidation waiver; or (b) have been granted an investment firm consolidation waiver ;or (c) are not subject to consolidated supervision under BIPRU 8. An IFPRU investment firm and a BIPRU firm under (a) must complete the report on the basis of its UK consolidation group. An IFPRU investment firm and a BIPRU firm under (b) or (c) must complete the report on the basis of its solo position. |
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Note 9 |
This will be applicable to firms that are members of a UK consolidation group on the reporting date. |
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Note 10 |
[deleted]55 55 |
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Note 11 |
Only applicable to a firm that is a sole trader or a partnership, when the report must be submitted by each partner. |
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Note 12 |
This is only applicable to a firm that has both a core UK group and a non-core large exposures group. |
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Note 13 |
[deleted]55 5055 |
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Note 14 |
FSA03474 must be completed by a firm not subject to the exemption in IPRU(INV) 5.4.2R74, unless it is a firm whose permitted business includes establishing, operating or winding up a personal pension scheme, in which case FIN071 must be completed76. FSA035 must be completed by a firm subject to the exemption in IPRU(INV) 5.4.2R7476. 7452 |
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Note 15 |
FSA029, FSA030, FSA032 and FSA039 only apply to a firm subject to IPRU(INV) Chapter 13 which is an exempt CAD firm. Sections A, B, C, D1,62 and F RMAR only apply to a firm subject to IPRU(INV) Chapter 13 which is not an exempt CAD firm. 505050 |
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Note 16 |
[deleted] |
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Note 17 |
An exempt BIPRU commodity firm will, by virtue of the definition of BIPRU TP 15, be exempt from completing FSA003 (and thus FSA004, FSA005, FSA006 and FSA007) for the duration of the transitional provision. It is however required to submit all other data items applicable according to the firm's BIPRU classification including, for the avoidance of doubt, BIPRU TP 16. |
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Note 18 |
Except if the firm is an adviser77 (as referred to in IPRU(INV) 3-60(4)R. |
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Note 19 |
[deleted]55 55 |
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Note 20 |
Only required in the case of an adviser77 (as referred to in IPRU(INV) 3-60(4)R) that is a sole trader. |
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Note 21 |
[deleted] |
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Note 22 |
Only applicable to firms that have an IRB permission. |
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Note 23 |
Only applicable to firms that hold securitisation positions, or are the originator or sponsor of securitisations. of non-trading book exposures. |
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Note 24 |
Only applicable to firms granted a Part 30 exemption order and operating an arrangement to cover forward profits on the London Metals Exchange. |
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Note 25 |
Only applicable to a firm that has a solo consolidation waiver. |
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Note 26 |
A firm must complete this item separately on each of the following bases (if applicable). (1) It must complete it on a solo basis. Therefore even if it has a solo consolidation waiver it must complete the item on an unconsolidated basis by reference to the firm alone. (2) If it is a group liquidity reporting firm in a DLG by default and is a UKlead regulated firm, it must complete the item on the basis of that group. (3) If it is a group liquidity reporting firm in a UKDLG by modification, it must complete the item on the basis of that group. (4) If it is a group liquidity reporting firm in a non-UK DLG by modification, it must complete the item on the basis of that group. |
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Note 27 |
A firm must complete this item separately on each of the following bases that are applicable. (1) It must complete it on a solo basis unless it is a group liquidity reporting firm in a UKDLG by modification. Therefore even if it has a solo consolidation waiver it must complete the item on an unconsolidated basis by reference to the firm alone. (2) If it is a group liquidity reporting firm in a UKDLG by modification, it must complete the item on the basis of that group. |
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Note 28 |
If it is a non-ILAS BIPRU firm, it must complete it on a solo basis. Therefore even if it has a solo consolidation waiver it must complete the item on an unconsolidated basis by reference to the firm alone. |
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Note 29 |
(1) This item must be reported in the reporting currency. (2) If any data element is in a currency or currencies other than the reporting currency, all currencies (including the reporting currency) must be combined into a figure in the reporting currency. (3) In addition, all material currencies (which may include the reporting currency) must each be recorded separately (translated into the reporting currency). However if: (a) the reporting frequency is (whether under a rule or under a waiver) quarterly or less than quarterly; or (b) the only material currency is the reporting currency; (3) does not apply. (4) If there are more than three material currencies for this data item, (3) only applies to the three largest in amount. A firm must identify the largest in amount in accordance with the following procedure. (a) For each currency, take the largest of the asset or liability figure as referred to in the definition of material currency. (b) Take the three largest figures from the resulting list of amounts. (5) The date as at which the calculations for the purposes of the definition of material currency are carried out is the last day of the reporting period in question. (6) The reporting currency for this data item is whichever of the following currencies the firm chooses, namely USD (the United States Dollar), EUR (the euro), GBP (sterling), JPY (the Japanese Yen), CHF (the Swiss Franc), CAD (the Canadian Dollar) or SEK (the Swedish Krona). |
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Note 30 |
Note 29 applies, except that paragraphs (3), (4) and (5) do not apply, meaning that material currencies must not be recorded separately. |
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Note 31 |
Any changes to reporting requirements caused by a firm receiving an intra-group liquidity modification (or a variation to one) do not take effect until the first day of the next reporting period applicable under the changed reporting requirements for the data item in question if the firm receives that intra-group liquidity modification or variation part of the way through such a period. If the change is that the firm does not have to report a particular data item or does not have to report it at a particular reporting level, the firm must nevertheless report that item or at that reporting level for any reporting period that has already begun. This paragraph is subject to anything that the intra-group liquidity modification says to the contrary.15 |
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Note 32 |
Only applicable to firms that hold securitisation positions in the trading book and/or are the originator or sponsor of securitisations held in the trading book. |
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Note 33 |
FSA047, FSA048, FSA050, FSA051, FSA052, FSA053 and FSA054 must be completed by an ILAS BIPRU firm. An ILAS BIPRU firm does not need to complete FSA055. A non-ILAS BIPRU firm must complete FSA055 and does not need to complete FSA047, FSA048, FSA050, FSA051, FSA052, FSA053 and FSA054. |
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Note 34 |
This data item must be reported only in the currencies named in FSA052, so that liabilities in GBP are reported in GBP in rows 1 to 4, those in USD are reported in USD in rows 5 to 8, and those in Euro are reported in Euro in rows 9 to 12. Liabilities in other currencies are not to be reported. |
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Note 35 |
Only applicable to firms that are collective portfolio management investment firms. |
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Note 36 |
Requirements under COREP and FINREP should be determined with reference to the EU CRR and applicable technical standards. |
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46Note 37 |
Only applicable to RAG 3 firms carrying on home financing or home finance administration connected to regulated mortgage contracts, unless as at 26 April 2014 its Part 4A permission was and continues to remain subject to a restriction preventing it from undertaking new home financing or home finance administration connected to regulated mortgage contracts. |