Financial Services (Banking Reform) Act 2013
2013 CHAPTER 33
Commentary
Part 4 – Conduct of Persons Working in Financial Services Sector
Amendments of FSMA
Section 19: Senior Management Functions
173.Section 19 inserts into FSMA a new section 59ZA to provide the definition of “senior management function”. Although the definition is of general application, it is only when the function is a designated senior management function in relation to a relevant authorised person that the new regime for senior managers and banking standards will apply (that is, mandatory statements of responsibility (see section 20), a reverse burden of proof (see section 30), and special register entries for senior managers (see section 34)).
174.Section 59ZA(3) gives a wide meaning to “managing one or more aspects of an authorised person’s affairs”. This includes participation in the taking of decisions as to how those affairs are to be carried on. The concept of a “senior manager” will therefore include non-executive directors of the firm itself and may also include, in relation to a firm, persons who are employed outside the firm – for example, directors of its parent undertaking – if they are involved in decisions that affect the business of the firm. It is not limited to those with responsibilities for managing people.
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