2.3.7 Code of Practice for Statement of Principle 6

Question 1

Statement of Principle 6 - due skill and exercise

Answer 1

an approved person performing a SIF to exercise due skill, care and diligence in managing the business of the firm for which they are responsible in their accountable function

Question 2

The following behaviours don’t comply with Statement of Principle 6

Answer 2

1) Failing to take reasonable steps to inform themselves about the affairs of the business for which they are responsible
2) Delegating the authority for dealing with an issue or a part of the business to an individual or individuals without reasonable grounds for believing that the delegate had the necessary capacity, competence, knowledge, seniority or skill to deal with the issue or take authority for dealing with that part of the business
3) Failing to take reasonable steps to maintain an appropriate level of understanding about an issue or part of the business that they have delegated to an individual or individuals
4) Failing to supervised and monitor the individuals to whom responsibility for dealing with an issue or authority for dealing with a part of the business has been delegated

Question 3

1) Failing to take reasonable steps to inform themselves about the affairs of the business for which they are responsible

Answer 3

1) Failing to take reasonable steps to inform themselves about the affairs of the business for which they are responsible

Question 4

2) Delegating the authority for dealing with an issue or a part of the business to an individual or individuals without reasonable grounds for believing that the delegate had the necessary capacity, competence, knowledge, seniority or skill to deal with the issue or take authority for dealing with that part of the business

Answer 4

2) Delegating the authority for dealing with an issue or a part of the business to an individual or individuals without reasonable grounds for believing that the delegate had the necessary capacity, competence, knowledge, seniority or skill to deal with the issue or take authority for dealing with that part of the business

Question 5

3) Failing to take reasonable steps to maintain an appropriate level of understanding about an issue or part of the business that they have delegated to an individual or individuals

Answer 5

3) Failing to take reasonable steps to maintain an appropriate level of understanding about an issue or part of the business that they have delegated to an individual or individuals. Including

• Disregarding a delegated issue
• not obtaining adequate reports
• Not testing the veracity of explanations from subordinates

Question 6

4) Failing to supervise and monitor the individuals to whom responsibility for dealing with an issue or authority for dealing with a part of the business has been delegated

Answer 6

4) Failing to supervise and monitor the individuals to whom responsibility for dealing with an issue or authority for dealing with a part of the business has been delegated