Approved persons that perform controlled functions for an authorised firm usually have significant influence over the firm’s regulatory conduct.
Controlled functions are carried out by two kinds of approved persons - the CF30 or 'customer' function, and the Significant Influence Functions (SIFs) that are carried out by those closely involved in the running of the firm.
Examples of controlled functions include:
- being a director of a regulated firm
- overseeing the firm’s systems and controls
- being responsible for compliance with our rules
An individual can hold more than one controlled function, eg, a director can perform the director function and the compliance oversight function, but you must show in your application that the individual can manage multiple roles.
Becoming approved for controlled functions
Different controlled functions apply to different businesses, depending on what activities they provide. No individual approved by a firm will need to perform all the functions.
- A firm that only provides mortgage insurance does not need to apply for individuals to be approved for customer functions like advising on mortgage products.
- A retailer whose main business is not financial services but who sells insurance policies only needs approval for the person who allocates responsibility for its business to senior management and oversees systems and controls.
Twelve controlled functions apply to consumer credit firms (see page 34 in our ‘being regulated’ guide), depending on their business and legal status.
The number of controlled functions your staff will need to be approved for will depend on the activities you intend to carry out, the legal entity of your business and the permissions you require.
It is unlikely you will be able to outsource these roles and still meet the standards we expect, although we assess this individually. You can, however, outsource resources for guidance and support for approved persons.
Full list of controlled functions
* = PRA designated controlled functions for dual-regulated firms (the PRA leads assessments of these applications)
Significant influence functions
CF 1 Director function *
CF 2 Non-executive director function *
CF 3 Chief executive function *
CF 4 Partner function *
CF 5 Directors of an unincorporated association *
CF 6 Small friendly society function *
CF 8 Apportionment and oversight function (non-MiFID business only)
CF 10 Compliance oversight function
CF 10A CASS Oversight Operation function
CF 11 Money laundering reporting function
CF 12 Actuarial function *
CF 12A With-profits actuary function *
CF 12B Lloyd’s Actuary function *
CF 28 System and controls function *
CF 29 Significant management function
CF 30 Customer function