- Responsibility for the firm’s performance of its obligations under the Senior Managers Regime (shared)
- Responsibility for the firm’s performance of its obligations under the employee certification regime (shared)
- Financial Crime
- COCON (Code of Conduct)
- CASS (where applicable)
Delivery of Statement of Responsibilities
Responsibility for the firm’s performance of its obligations under the SMR includes:
- Assignment of correct SMFs
- Production of SORs and correct allocation
- Fitness and Proper Test for SMFs including Criminal Record checks and Regulatory references
Responsibility for the firm’s performance of its obligations under the employee certification regime includes:
- Ensuring staff have obtained a qualification
- Are trained or are undergoing training
- Ensuring they possess a level of competence
- Production of certificates
- Setting out what aspect of the firm’s business they will be involved in
The bulk of Certification Functions are likely to be the “Client dealing function” which includes financial advisers, investment managers and people that are involved dealing in investments or corporate finance but can include anyone that supervises or manages a Certified Function but is not an Senior Manager (team leaders/sales managers perhaps in larger firms)
Senior Managers may also be advisers in which case they must be both be assessed under SMR and Certification.
Each Certification Function must be assessed if an individual carries out more than one.
You must identify every Certified Function on day 1 (09/12/2019) and you have 12 months to perform the certification and must evidence this properly.
These apply to Senior Managers, Certified Functions all other employees except:
- Switchboard staff
- Post room staff
- Events Management
- Security staff
- HR administrators
- Data controllers
- IT support staff
- PA’s/ secretaries
This is not all but possibly the most relevant that the FCA consider exempt.
Conduct Rules fall into two categories:
- You must act with integrity
- You must act with due care and diligence
- You must be open and cooperate with the FCA, PRA and other regulators
- You must pay due regard to customer interests and treat them fairly
- You must observe proper standards of market conduct
- SC1. Take reasonable steps to ensure that the business is controlled effectively
- SC2. Take reasonable steps to ensure the business of the firm complies with any relevant standards and regulatory requirements
- SC3. Take reasonable steps to ensure that any delegated responsibility is overseen and discharged responsibly
- SC4. You must disclose and information appropriately that the FCA or PRA would reasonably expect you to.
- Is your firm Limited Scope, Core of Enhanced?
- Have you identified any senior managers in your firm correctly?
- If you already have Approved Persons under the APR are any changes required?
- Will any current Approved Persons lapse?
- Do you know what is needed to ensure correct approvals?
- Do you have all the Statements of Responsibilities that you need?
- Have you allocated all of the Prescribed Responsibilities correctly?
- Which Certification Functions apply to your firm?
- Have you identified annual Certification individuals?
- How will the annual Fit and Proper tests fit into any current HR processes?
- Do you have the means to carry out the Criminal Records checks required?
- Have you identified Ancillary Staff that are exempt from the Conduct Rules?
Niel F Gavin
for downloads including job spec etc see BAT doc library (available to non members for £25 pm)
July 19 https://ifac.eu/news/view.php?news_id=104
August 19 https://ifac.eu/news/view.php?news_id=349
September 19 https://ifac.eu/news/view.php?news_id=212
October 2018 https://ifac.eu/news/view.php?news_id=13