What must a firm establish according to SYSC 3?

A firm must establish reasonable care to maintain systems and controls as outlined in SYSC 3. This regulation emphasizes the importance of firms having robust frameworks in place to manage their operational risk, ensure compliance with regulatory requirements, and foster an environment of accountability. Effective systems and controls are critical in identifying and mitigating risks, managing business processes, and ensuring effective governance within the organization. By prioritizing these systems, firms can help protect against potential failures that could lead to financial loss or regulatory breaches.

This focus on systems and controls goes beyond just compliance; it reflects a broader commitment to operational resilience and ethical business practices. Firms that invest in maintaining adequate oversight and management processes are better equipped to respond to challenges, thereby enhancing their overall stability and integrity in the market.