Common use of Senior Managers Clause in Contracts

Senior Managers. 4. The PRA may designate Senior Management Functions (SMFs) if the functions will require the persons performing them to be responsible for one or more aspects of the authorised person’s affairs, so far as relating to the regulated activity, and those aspects involve, or might involve, a risk of serious consequences for the authorised person (section 59ZA FSMA). The PRA will lead and manage a single administrative process for approving individuals for such SMFs. This will include co-ordinating the process and communicating all formal notices and decisions to the firm and/or candidate as appropriate. The PRA will obtain consent from the FCA before taking its decision whether to approve the candidate. 5. Each regulator will assess the application against the fitness and propriety criteria in line with its objectives. In general, the PRA will be responsible for asking for any additional information in support of the application. The FCA may ask for such information in co-ordination with the PRA. Each regulator will provide the other with relevant information, whether submitted as part of the application or any other information it holds, where material to the other’s responsibilities. 6. The FCA will designate publicly in its Handbook those SMFs deemed to be materially connected to a firm’s interface with customers, including client assets, anti-money laundering and compliance. The FCA will be solely responsible for the approval of individuals for such SMFs, including communicating all formal notices and decisions to the firm and/or candidate as appropriate. The FCA will consult the PRA for a sub- set of SMFs specified by the FCA. 7. If the PRA responds to a consultation request from the FCA, it may provide a formal view, with supporting evidence, or state informal concerns which may prompt the FCA to seek further information from the firm, the candidate or other sources. Where the PRA’s view is instrumental to the FCA’s decision to refuse an application, the FCA will notify the PRA prior to taking a decision and will consult on the relevant wording of any notice to be published. The PRA may be called upon to provide evidence of its view in any related legal proceedings.