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FIRM TYPE DESCRIPTION
Limited Scope Firm Firms that currently have a limited application of the APR, including: –

  • limited permission consumer credit firms
    • claims management companies (CMCs) that do not carry on any other type of FCA-regulated activity; are also insurance intermediaries; and/or are also limited permission consumer credit firms
  •  all sole traders
  • authorised professional firms whose only regulated activities are non-mainstream
  • regulated activities
  • oil & energy market participants (principal purpose – activities other than regulated activities & are not MiFID investment firms)
  • service companies
  • subsidiaries of local authorities or registered social landlords
  • insurance intermediaries whose principal business is not insurance intermediation
  • and who only have permission to carry on insurance distribution activity for
  • non-investment insurance contracts
  • authorised internally managed Alternative Investment Funds (AIFs)
Core Firm You are a Core SM&CR Firm if no criteria from the Limited or Enhanced type applies
 

 

 

 

 

 

Enhanced Firm

Enhanced firms are those meeting one or more of 6 criteria below: –

  • Definitional Criteria
    • a firm that is a Significant IFPRU firm
    • a firm that is a Client Assets Sourcebook (CASS) Large firm
  • Criteria Calculated on a Rolling Average
    • firms with Assets Under Management of £50 billion or more as a 3-year rolling average
    • firms with current total intermediary regulated business revenue of £35m+ per annum calculated as a 3-year rolling average
    • firms with annual revenue generated by regulated consumer credit lending of £100m or more calculated as a 3-year rolling average.
  • Criteria Calculated as a Point in Time
    • mortgage lenders and administrators (that are not banks) with 10,000 or more regulated mortgages outstanding at the latest reporting date
FIRM TYPE APPLICABLE SMF AND PR

FIRM TYPE

SMF

PR

 

 

Limited Scope Firm

Governing Functions

SMF29 – Limited Scope Function*

 

Required Functions

SMF16 – Compliance Oversight*

SMF17 – Money Laundering Reporting Officer*

*The SMF’s that apply to a Limited Scope Firm depends on their permissions and activities. Refer to the FCA Handbook for further information.

 

 

No PRs apply to Limited Scope Firms

 

 

 

 

Core Firm

Governing Functions

SMF1 – Chief Executive

SMF3 – Executive Director

SMF27 – Partner

SMF9 – Chair

 

Required Functions

SMF16 – Compliance Oversight

SMF17 – Money Laundering Reporting Officer

(a)  – Performance by the firm of its obligations under the SMR (inc implementation & oversight)

(b)  – Performance by the firm of its obligations under the Certification Regime

(b-1) – Performance by the firm of its obligations in respect of notifications and training of the Conduct Rules

(d) – Responsibility for the firm’s policies and procedures for countering the risk that the firm might be used to further financial crime

(z) – Responsibility for the firm’s compliance with CASS (if applicable)

(za) – Responsibility for an AFM’s assessments of value, independent director representation and acting in investors’ best interests (only applies to AFMs.)

 

 

 

 

 

 

Enhanced Firm

Governing Functions

SMF1 – Chief Executive

SMF3 – Executive Director

SMF7 – Group Entity Senior Manager

SMF9 – Chair

SMF10 – Chair of the Risk Committee

SMF11 – Chair of the Audit Committee

SMF12 – Chair of the Remuneration Committee

SMF13 – Chair of the Nominations Committee

SMF14 – Senior Independent Director

SMF27 – Partner

 

Required Functions

SMF16 – Compliance Oversight

SMF17 – Money Laundering Reporting Officer

SMF18 – Other Overall Responsibility

 

Systems & Controls Functions

SMF2 – Chief Finance Function

SMF4 – Chief Risk Function

SMF5 – Head of Internal Audit

SMF24 – Chief Operations Function

(a) – Performance by the firm of its obligations under the SMR (inc implementation & oversight)

(b) – Performance by the firm of its obligations under the Certification Regime

(b-1) – Performance by the firm of its obligations in respect of notifications and training of the Conduct Rules

(d) – Responsibility for the firm’s policies and procedures for countering the risk that the firm might be used to further financial crime

(z) – Responsibility for the firm’s compliance with CASS (if applicable)

(c) – Compliance with the rules relating to the firm’s Responsibilities Map

(j) – Safeguarding and overseeing the independence and performance of the internal audit function

(k) – Safeguarding & overseeing the independence & performance of the compliance

function

(l) – Safeguarding and overseeing the independence and performance of the risk function

(j-3) – Taking reasonable steps to ensure that every person involved in the performance of the service is independent from the persons who perform external audit (applicable where a firm outsources its internal audit function)

(t) – Developing and maintaining the firm’s business model

(s) – Managing the firm’s internal stress-tests and ensuring the accuracy and timeliness of information provided to the FCA for the purposes of stress-testing

(za) – Responsibility for an AFM’s assessments of value, independent director representation and acting in investors’ best interests (applies to AFMs only)