SYSC 26.8 Meaning of local and overall responsibility: Not reporting to the governing body

This section relates to the allocation of overall or local responsibility for any activities, business areas and functions of the firm which are not under the management of its governing body (see SYSC 26.3 (Main rules)).

A person having local responsibility for a function for a branch does not need to be part of the management structure of the branch in order to have local responsibility for the function.

1. (1)

   Generally, where a an overseas SMCR firm allocates responsibility as described in SYSC 26.8.1G to one of the firm’s SMF managers who is not based in the branch the FCA would expect:

   1. (a)

      that the responsibility would not be allocated to a manager whose responsibilities for the branch are limited to setting overall strategy for the branch; and

   2. (b)

      that, instead, the firm would allocate it to a manager who is the most senior person responsible for implementing the strategy for the branch.

2. (2)

   See SUP 10C.1.5AG for more about how the difference between strategic and implementing responsibilities affects the FCA senior managers regime for approved persons in overseas SMCR firms.

1. (1)

   In some cases, a person who has local responsibility for a particular function may be very senior within the firm as a whole.

2. (2)

   For instance, in some branches, an individual with local responsibility for a function may also be the head of the firm’s Europe and Middle East division for a business line and may be more senior within the firm as a whole than the person performing the PRA’s Head of Overseas Branch designated senior management function.

Having overall responsibility for a function as described in SYSC 26.8.1G for a UK SMCR firm means being the most senior employee or officer (under the chief executive if there is one) responsible for managing or supervising that function.