SYSC (Senior Management Arrangements, Systems and Controls) is the FCA Handbook sourcebook that sets out the organisational requirements a regulated firm must meet. It covers how a firm apportions responsibilities among its senior managers, how it manages risk, and the systems and controls it must maintain across compliance, internal audit, financial crime and record-keeping. For many firms, SYSC also contains the rules that give effect to the Senior Managers and Certification Regime (SM&CR) and the Conduct Rules.
Why SYSC matters
SYSC translates high-level Principles for Businesses into concrete organisational obligations. A firm must have robust governance arrangements, clear lines of responsibility, effective risk management, and adequate compliance and internal-audit functions proportionate to its nature, scale and complexity. Because SYSC underpins individual accountability, weaknesses in a firm’s systems and controls frequently surface in enforcement cases as failures by named senior managers to take reasonable steps.
Who it applies to
All FCA-regulated firms, with the detailed application of individual SYSC provisions depending on the firm’s category and regulatory permissions.
Related terms
SM&CR and conduct risk.