FCA 2023/40: Senior Management Arrangements, Systems and Controls Instrument 2023

The Financial Conduct Authority (FCA) has issued new instrument (FCA 2023/40) to implement the changes to the FCA Handbook as provided for in the joint Policy Statement (FCA PS23/17 – PRA PS16/23) (EventID 24252) of the FCA and the Prudential Regulation Authority (PRA) in relation to the remuneration (policy) requirements of dually regulated CRR firms, including investment firms, banks, and building societies.
Specifically, the new instruments modifies the Glossary and the SYSC (Senior Management Arrangements, Systems and Controls) Sourcebook of the regulator to implement the new thresholds for defining „small CRR firms“ for purposes of applying less stringent remuneration policies, to clarify the application at both group and entity level, if an individual entity meets this definition, and to align terminology with those of the PRA Rulebook (e.g. the term „code staff“ is replaced with „material risk taker“). Details on the changes may be viewed in the enclosed instrument.