The following Financial Services guidance note provides comprehensive and up to date legal information covering:
This Practice Note looks at the requirements of chapter 13 of the Financial Conduct Authority (FCA)'s Senior Management Arrangements, Systems and Controls sourcebook (SYSC 13) and provides guidance to insurers when establishing and maintaining systems and controls in relation to the management of operational risk. This Practice Note should be read in conjunction with Practice Note: Prudential requirements for UK insurers—Pillar 2 and Pillar 3 requirements which describes operational risk requirements under Solvency II and the Prudential Regulation Authority's (PRA) implementation of Solvency II. For further information on Solvency II and the prudential requirements for UK insurers, see Practice Notes: Prudential requirements for UK insurers—introduction, Prudential requirements for UK insurers—Pillar 1 requirements and Solvency II—essentials.
The purpose of SYSC 13 is to provide guidance on how to interpret SYSC 3.1.1 R and SYSC 3.2.6 R, which deal with establishment and maintenance of systems and controls in relation to the management of operational risk. The chapter covers systems and controls for managing risks concerning any of a firm's operations. It does not cover systems and controls for managing credit, market, liquidity and insurance risk.
Firms should also consider the requirements for operational risk contained in the FCA Conduct of Business sourcebook (COBS) and SYSC 14.
SYSC 13 applies to an insurer
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234