SYSC 2

Senior management arrangements

SYSC 2.1

Apportionment of Responsibilities

SYSC 2.1.1

See Notes

handbook-rule

A firm must take reasonable care to maintain a clear and appropriate apportionment of significant responsibilities among its directors and senior managers in such a way that:

  1. (1) it is clear who has which of those responsibilities; and
  2. (2) the business and affairs of the firm can be adequately monitored and controlled by the directors, relevant senior managers and governing body of the firm.

SYSC 2.1.2

See Notes

handbook-guidance
The role undertaken by a non-executive director will vary from one firm to another. For example, the role of a non-executive director in a friendly society may be more extensive than in other firms. Where a non-executive director is an approved person, for example where the firm is a body corporate, his responsibility and therefore liability will be limited by the role that he undertakes. Provided that he has personally taken due care in his role, a non-executive director would not be held discipliniarily liable either for the failings of the firm or for those of individuals within the firm. The non-executive director function, for the purposes of the approved persons regime, is described in SUP 10.

SYSC 2.1.3

See Notes

handbook-rule

A firm must appropriately allocate to one or more individuals, in accordance with SYSC 2.1.4 R, the functions of:

  1. (1) dealing with the apportionment of responsibilities under SYSC 2.1.1 R; and
  2. (2) overseeing the establishment and maintenance of systems and controls under SYSC 3.1.1 R.

SYSC 2.1.4

See Notes

handbook-rule

Allocation of functions

This table belongs to SYSC 2.1.3 R

SYSC 2.1.5

See Notes

handbook-guidance
SYSC 2.1.3 R and SYSC 2.1.4 R give a firm some flexibility in the individuals to whom the functions may be allocated. It will be common for both the functions to be allocated solely to the firm's chief executive. SYSC 2.1.6 G contains further guidance on the requirements of SYSC 2.1.3 R and SYSC 2.1.4 R in a question and answer form.

SYSC 2.1.6

See Notes

handbook-guidance

Frequently asked questions about allocation of functions in SYSC 2.1.3 R

This table belongs to SYSC 2.1.5 G

SYSC 2.2

Recording the apportionment

SYSC 2.2.1

See Notes

handbook-rule
  1. (1) A firm must make a record of the arrangements it has made to satisfy SYSC 2.1.1 R (apportionment) and SYSC 2.1.3 R (allocation) and take reasonable care to keep this up to date.
  2. (2) This record must be retained for six years from the date on which it was superseded by a more up-to-date record.

SYSC 2.2.2

See Notes

handbook-guidance
  1. (1) A firm will be able to comply with SYSC 2.2.1 R by means of records which it keeps for its own purposes provided these records satisfy the requirements of SYSC 2.2.1 R and provided the firm takes reasonable care to keep them up to date. Appropriate records might, for this purpose, include organisational charts and diagrams, project management documents, job descriptions, committee constitutions and terms of reference provided they show a clear description of the firm's major functions.
  2. (2) Firms should record any material change to the arrangements described in SYSC 2.2.1 R as soon as reasonably practicable after that change has been made.

SYSC 2.2.3

See Notes

handbook-guidance
Where responsibilities have been allocated to more than one individual, the firm's record should show clearly how those responsibilities are shared or divided between the individuals concerned.