FCA Handbook - SYSC 22.8 Policies and requests for references from and by persons who are not firms

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SYSC 22.8 Policies and requests for references from and by persons who are not firms

Policies and procedures

A firm must establish, implement and maintain policies and procedures that are adequate for the purpose of complying with the obligations in this chapter.

(1)
SYSC 22.8.1R does not require a firm to create or keep records that are not required under SYSC 22.9.1R (General record keeping rules) or another rule.
(2)
(1) applies to a firm whether or not SYSC 22.9.1R applies to it.

Appointed representatives

This chapter applies to a firm’s appointed representatives as well as to the firm.

When SYSC 22.8.3R applies to an SMCR firm, the requirements of this chapter for firms that are not SMCR firms apply in place of the requirements that only apply to SMCR firms. In particular, the following requirements do not apply in relation to an appointed representative:

(1)
SYSC 22.2.1R (Obligation to obtain references);
(2)
SYSC 22.2.2R(4) (Obligation to give references);
(3)
SYSC 22.2.4R to SYSC 22.2.6R (Obligation to revise references);
(4)
SYSC 22.4.2R (How to draft the reference);
(5)
SYSC 22.8A.1R (Intra-group transfers); and
(6)
SYSC 22.9.1R (General record keeping rules).

(1)
The approved person’s authorised approved person employer is responsible for compliance with SYSC 22.8.3R in the case of a requirement:
1. (a)
  to give a reference about an approved person whose approval is under SUP 10A (FCA Approved Persons in Appointed Representatives); and
2. (b)
  [deleted]
3. (c)
  under SYSC 22.2.7R in relation to any such person.
(2)
In any other case, each principal of the appointed representative in question is responsible for compliance with SYSC 22.8.3R.
(3)
If another principal of the appointed representative has accepted responsibility for the obligation in SYSC 22.8.3R, that principal is responsible in place of the other firms in (1) or (2).

One effect of SYSC 22.8.4R is that when an appointed representative appoints an approved person under SUP 10A (FCA Approved Persons in Appointed Representatives) there is no requirement for the appointed representative or its principal to request a reference.

This chapter does not apply in relation to an appointed representative of a firm that is not an SMCR firm.

(1)
A firm should ensure that its appointed representative gives a reference when another firm (or its appointed representative) asks that appointed representative to give a reference in accordance with this chapter.
(2)
A firm is not responsible for its appointed representative’s giving references if another principal has accepted responsibility for this.
(3)
The appointed representative need not give the reference using the template in SYSC 22 Annex 1 (Template for regulatory references given by SMCR firms and disclosure requirements).

If an appointed representative asks a firm for a reference, the firm should give one. The requirements of this chapter apply to the firm in the same way as they would if the appointed representative were a firm.

(1)
A firm should try to ensure that its appointed representative considers whether it needs to disclose a breach of individual conduct requirements (as defined in Part Two of SYSC 22 Annex 1R (Template for regulatory references given by SMCR firms and disclosure requirements)) when giving a reference under this chapter.
(2)
Therefore an example of information that may be relevant under SYSC 22.2.2R(1) to (3) is the fact that the employee has breached a requirement in APER, not just a requirement in COCON.