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  • FP-1.2 Senior Management Functions

    • FP-1.2.1

      The board and the chief executive officer are responsible for the design and documentation of the organisation structure, for identifying senior management functions and ensuring compliance with the fit and proper requirements.

      Added: March 2025

    • Identifying Senior Management Functions

      • FP-1.2.2

        Senior management functions are those functions that are identified in accordance with Paragraph FP-1.2.1. In identifying senior management functions, the licensee should consider the size and nature of the activities, complexity of business, organisational structure, reporting lines and the delegated authorities. The following additional criteria may be considered for such identification:

        (a) A person who has significant authority to make decisions for the whole or a substantial part of the business of the licensee (e.g. positions with board delegated authority to oversee revenue generation of 20% or more) and can significantly impact the licensee’s safety and soundness or cause material harm to the licensee’s customers (e.g., CEO/general manager, heads of key business functions);
        (b) A person who enforces policies and implements strategies approved by the board of the licensee;
        (c) A person heading a function reporting to the board and/ or those heading control functions (i.e. chief financial officer, chief risk officer, chief internal auditor, chief information security officer, chief compliance officer etc.); or
        (d) For a licensee which is a branch of an overseas entity, a person who is nominated as the senior officer by the head office to the extent that the person meets the definition in subparagraphs (a), (b) or (c) above.
        Added: March 2025

      • FP-1.2.3

        Licensees must maintain a statement of responsibilities (SOR) for all senior management functions which sets out the description of the job role, the job objectives, function related responsibilities, reporting responsibilities, oversight responsibilities, delegated authorities and personal accountability. The SORs must be signed by the person in that relevant senior management function within one month of appointment.

        Added: March 2025