Prudential Regulation Authority Rulebook

4.1

Each of the responsibilities set out in this rule is a prescribed responsibility:

1. (1) responsibility for the firm’s performance of its obligations under the senior management regime;
2. (2) responsibility for the firm’s performance of its obligations under the certification rules;
3. (3) responsibility for compliance with the firm’s obligations in relation to its management responsibilities map;
4. (4) responsibility for the firm’s performance of its obligations under Fitness and Propriety in respect of its notified non-executive directors;
5. (5) responsibility for monitoring effective implementation of policies and procedures for the induction, training and professional development of senior management, other than members of the governing body;
6. (6) responsibility for overseeing the adoption of the firm’s culture in the day-to-day management of the firm;
7. (7) responsibility for managing the allocation and maintenance of the firm’s capital, funding and liquidity;
8. (8) responsibility for the firm’s treasury management functions;
9. (9) responsibility for the production and integrity of the firm’s financial information and its regulatory reporting under the regulatory system;
10. (10) responsibility for developing and maintaining the firm’s recovery plan and resolution pack and for overseeing the internal processes regarding their governance;
11. (11) responsibility for managing the firm’s internal stress-tests and ensuring the accuracy and timeliness of information provided to the PRA and other regulatory bodies for the purposes of stress- testing;
12. (12) responsibility for the development and maintenance of the firm’s business model by the governing body;
13. (13) responsibility for leading the development and monitoring effective implementation of policies and procedures for the induction, training and professional development of all members of the firm’s governing body;
14. (14) responsibility for leading the development of the firm’s culture by the governing body as a whole;
15. (15) responsibility for safeguarding the independence of, and overseeing the performance of, the internal audit function, including the performance of a person approved to perform the Head of Internal Audit function on behalf of the firm, in accordance with Compliance and Internal Audit 3;
16. (16) responsibility for safeguarding the independence of, and overseeing the performance of, the compliance function, including the performance of a person approved by the FCA to perform the compliance oversight function on behalf of the firm, in accordance with Compliance and Internal Audit 2;
17. (17) responsibility for safeguarding the independence of, and overseeing of the performance of, the risk function , including the performance of a person approved to perform the Chief Risk function on behalf of the firm, in accordance with Risk Control 3.4 and 3.5;
18. (18) responsibility for overseeing the development of, and implementation of the firm’s remuneration policies and practices in accordance with Remuneration;
19. (19) responsibility for the independence, autonomy and effectiveness of the firm’s policies and procedures on whistleblowing, including the procedures for protection of staff who raise concerns from detrimental treatment.
20. (20) responsibility for the allocation of all prescribed responsibilities in accordance with 3.1.

4.2

Each of the responsibilities set out in this rule is a prescribed responsibility in the circumstances specified:

1. (1) if the firm carries out proprietary trading, responsibility for the firm’s proprietary trading activities;
2. (2) if the firm does not have a person who performs the Chief Risk function, responsibility for the compliance of the firm’s risk management systems, policies and procedures with the requirements of Risk Control 2.1 to 2.4;
3. (3) if the firm outsources its internal audit function, responsibility for taking reasonable steps to ensure that every person involved in the performance of that function is independent from the persons who perform external audit, including:
1. (a) supervision and management of the work of outsourced internal auditors; and
2. (b) management of potential conflicts of interest between the provision of external audit and internal audit services;
4. (4) if the firm is a ring-fenced body, responsibility for ensuring that those aspects of the firm’s affairs for which a person is responsible for managing are in compliance with the ring-fencing obligations.