SUP 10A.7 FCA required functions

In requiring someone to apportion responsibility, a common platform firm should not apply for that person or persons to be FCA-approved to perform the apportionment and oversight function (see SUP 10A.7.1 R and SYSC 1 Annex 1).

The fact that there is a person performing the apportionment and oversight function, and who has responsibility for activities subject to regulation by the FCA, may have a bearing on whether a manager who is based overseas will be performing an FCA controlled function. It is a factor to take into account when assessing the likely influence of the overseas manager.

Generally, in relation to a UK establishment of an overseas firm or a firm which is part of an overseas group, where an overseas manager’s responsibilities in relation to the United Kingdom are strategic only, they will not need to be an FCA-approved person. However, where, in accordance with SYSC 4 to SYSC 10, they are responsible for implementing that strategy in the United Kingdom, and have not delegated that responsibility to a senior manager in the United Kingdom, they are likely to be performing an FCA controlled function for example, the chief executive function.

A firm carrying on insurance distribution activity, other than a sole trader, must allocate to a director or senior manager the responsibility for the firm's insurance distribution activity (MIPRU 2.2.1 R). The firm may allocate this responsibility to the person performing the apportionment and oversight function.

Where the person performing the apportionment and oversight function is also responsible for the firm's insurance distribution activity, the words “(insurance distribution)” will be inserted after this FCA controlled function (see MIPRU 2.2.5 G).

A firm's obligations in respect of its money laundering reporting officer are set out elsewhere in the FCA Handbook (see SYSC 6.3.9 R and for its scope, see the application provisions in SYSC 1 Annex 1).