The FCA has published a new webpage containing guidance for directors of firms that are subject to CRD IV relating to the new limits on the number of directorships that they may hold, which took effect on 1 July 2014.

The guidance states that directors of firms that are deemed “significant” who wish to hold one additional non-executive directorship beyond the limits laid down in rule 4.3.A.6 of the FCA’s Senior Management Arrangements, Systems and Controls sourcebook (SYSC) will need to apply for a modification of SYSC 4.3.A.6R.

SYSC 4.3.A.6R requires firms to ensure that members of their management body do not hold more than one of the following combination of directorships (including non-financial services directorships):

  • one executive directorship with two non-executive directorships; and
  • four non-executive directorships.

The guidance states that, in submitting a modification application, the information supporting the application should include a description of the following:

  • other roles (non-executive and executive roles, but not limited to directorships) held by the individual to whom the application relates;
  • the nature, size and complexity of each firm where the individual currently has a role;
  • record of committee/board attendance and role in each firm where the individual currently has a role;

conflicts of interest (if any) between the individual’s directorships;

  • time allocated to each firm, including the contractual position and the reality or actual position, both current and in times of increased firm stress;
  • number of working days excluding weekends, bank holidays and annual leave; and
  • whether there are synergies between roles.

View NED limitations, 23 July 2014