If this day-to-day oversight has been delegated to someone else, then the delegate will fall into the certification regime as the certified individual responsible for CASS operational oversight.įor many firms, this function equates to the CF10a role seen in the past under the Approved Persons Regime. It is recognised that the person who has ultimate responsibility for CASS may not be responsible for the day-to-day oversight of CASS operations. It’s worth noting that SMF 18 is not applicable to Core firms, so those firms will need to have a different SMF allocated with PR Z Certification Function and CASS This allows for flexibility and accuracy for when firms are mapping their responsibility lines, particularly CASS responsibility lines. If they do need to hold another PR alongside PR Z, that will need to be done under another SMF (for example, SMF 16, the Compliance function). Enhanced Regime firms should be aware that an SMF 18 can only be assigned PR Z, they can’t hold any other PR. If that is the case, the Senior Manager will be appointed as an SMF 18 – ‘Other Overall Responsibility’. In Enhanced Regime firms, it is possible that the individual with PR Z will have no other Senior Manager responsibilities due to the firm’s size, governance structure and allocation of responsibilities and duties. But to add complexity, this could be reflected in different senior management functions. The PRs cover several areas, including CASS (PR Z), which must be given to the individual who is ultimately responsible within the firm for compliance with the CASS rules. They are intended to ensure a Senior Manager is accountable for key areas of conduct and prudential risk. They are prescribed directly by the FCA and are in addition to the inherent responsibilities that are an essential part of the Senior Manager’s role. These are specific responsibilities, defined in SYSC 24 of the FCA Handbook, each of which must be allocated to a Senior Manager of Core and Enhanced firms. SM&CR brought in the concept of Prescribed Responsibilities, known as PRs. Senior Manager Prescribed Responsibility for CASS However, under SM&CR this was changed and instead of one individual being approved by the regulator as the CF10a, the role and its responsibilities were split between a Senior Manager Prescribed Responsibility, and a Certification Function. Prior to SM&CR, the Approved Persons Regime applied and required CASS medium and large firms to have someone in the CF10a controlled function responsible for CASS operational oversight. CASS responsibilities in the SM&CR – what happened to the CF10a? In fact, CASS medium firms can ‘opt up’ and adopt the Enhanced Regime early in preparation for an expected CASS reclassification. CASS medium firms that are likely to move to CASS large categorisation in the next 12 months should take time to start planning for the Enhanced Regime. Whilst accountability is still at the foundation of the Limited Scope Regime, it requires less of certain firms due to the nature of the financial services that they offer, for example Limited Scope Firms do not need to allocate Prescribed Responsibilities (explained further below).įrom a CASS perspective, because all CASS large firms are subject to the Enhanced Regime, it is important that these firms understand the additional requirements they’re subject to. Limited Scope Regime: The Limited Scope Regime is a ‘light touch’ version of the rules.All CASS large firms – that is, those with more than £1bn client money or more than £100bn custody assets – are enhanced firms. Enhanced Regime: As well as the Core Regime requirements, the Enhanced Regime will apply an additional set of requirements to larger firms whose size, complexity and potential impact on customers warrants more attention. Core Regime: This is a baseline requirement which will apply to almost every firm.Part of this was considering which type of SMCR firm they would be: In preparation, most firms identified which categorisation they would have under the new regime. The Senior Management and Certification Regime has now been extended to include all to solo regulated firms. Understanding your firm type under SM&CR – and what it means for CASS As the dust settles, and with CASS a theme in several of the FCA’s recent Dear CEO letters, it’s important to be clear what elements come under which people. The switch for CASS responsibility before and after SM&CR won’t have been straightforward for some.
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