• GEN 5.4 GEN 5.4 Recognised Functions and Recognised Persons

    • GEN 5.4.1

      Pursuant to Part 5 of FSMR, the functions as listed in Rules 5.4.5 to 5.4.9 are Recognised Functions.

    • GEN 5.4.2

      Performance of Recognised Functions shall be subject to approval by the relevant Authorised Person in respect of which the Recognised Function is to be performed.

    • GEN 5.4.3

      Where an individual is approved pursuant to 5.4.2 or has his Recognised Function varied, the Authorised Person must notify the Regulator in writing within 10 days of such approval or variation.

      Amended on (3 February, 2020).

    • GEN 5.4.4 GEN 5.4.4

      A Recognised Function shall not include a function performed by a registered insolvency practitioner (subject to the restrictions defined within section 289 of the Insolvency Regulations 2015) if the practitioner is:

      (a) appointed as a receiver or administrative receiver within the meaning of Part 2 of the Insolvency Regulations 2015;
      (b) appointed as a liquidator in relation to a members' voluntary Winding-Up within the meaning of Chapter 3 of Part 3 of the Insolvency Regulations 2015;
      (c) appointed as a liquidator in relation to a creditors' voluntary Winding-Up within the meaning of Chapter 4 of Part 3 of the Insolvency Regulations 2015; or
      (d) appointed as a liquidator or provisional liquidator in relation to a compulsory Winding-Up within the meanings of Chapter 6 of Part 3 of the Insolvency Regulations 2015.

      • Finance Officer


    • GEN 5.4.5 GEN 5.4.5

      The Finance Officer function is carried out by an individual who is a Director, Partner or Senior Manager of an Authorised Person who has responsibility for the Authorised Person's compliance with the applicable Rules in PRU or PIN.

      • Compliance Officer


    • GEN 5.4.6 GEN 5.4.6

      The Compliance Officer function is carried out by an individual who is a Director, Partner or Senior Manager of an Authorised Person who has responsibility for compliance matters in relation to the Authorised Person's Regulated Activities.

      • Senior Manager


    • GEN 5.4.7 GEN 5.4.7

      The Senior Manager function is carried out by an individual who is responsible either alone or jointly with other individuals for the management, supervision or control of one or more parts of an Authorised Person's Regulated Activities who is:

      (a) an Employee of the Authorised Person; and
      (b) not a Director or Partner of the Authorised Person.

      • Guidance

        In respect of a Fund, the Regulator would expect the Fund Manager to appoint at least one individual other than the Senior Executive Officer to carry out Senior Manager functions in relation to the Fund such as managing operational risk and other internal controls.

    • Money Laundering Reporting Officer


      • GEN 5.4.8

        The Money Laundering Reporting Officer function is carried out by an individual who is a Director, Partner or Senior Manager of an Authorised Person and who has responsibility for the implementation of an Authorised Person's anti-money laundering policies, procedures, systems and controls and day to day oversight of its compliance with the Rules in AML and any relevant anti-money laundering Rules.

    • Responsible Officer

      • GEN 5.4.9 GEN 5.4.9

        The Responsible Officer function is carried out by an individual who:

        (a) has significant responsibility for the management of one or more aspects of an Authorised Person's affairs;
        (b) exercises a significant influence on the Authorised Person as a result of (a); and
        (c) is not an Employee of the Authorised Person.

        • Guidance

          1. The Recognised Function of a Responsible Officer applies to an individual employed by a Controller or other Group company who is not an Employee of the Authorised Person, but who has significant responsibility for, or for exercising a significant influence on, the management of one or more aspects of the Authorised Person's business.
          2. Examples of a Responsible Officer might include an individual responsible for the overall strategic direction of an Authorised Person or a regional manager to whom a Senior Executive Officer reports and from whom he takes direction.

    • GEN 5.4.10 GEN 5.4.10

      An Authorised Person must notify the Regulator prior to approval of an individual, for one or more Recognised Functions, when the individual is currently an Approved Person or Recognised Person for one or more other Authorised Persons.

      • Guidance

        1. The Regulator expects an Authorised Person when considering whether to approve an individual as a Recognised Person and who is already an Approved Person or Recognised Person with one or more other Authorised Persons, will consider each Recognised Function and any Controlled Functions to be carried out and the allocation of responsibility for that individual among the relevant Authorised Persons.
        2. The Regulator also expects that the Authorised Person will assess whether the individual will be able to carry out his roles effectively, is fit and proper to do so, and that there are no conflicts of interest or that any actual or potential conflicts of interest are appropriately managed.