26 Jul FCA Policy Statement – Optimising the SM&CR
We have received the below from the FCA.
The Senior Managers and Certification Regime (SM&CR) is being extended to 47,000 solo -regulated firms on 9 December 2019 with the aim of setting a new standard of personal conduct for everyone working in financial services.
Today we publish final rules on the extension of the Senior Managers and Certification Regime (SM&CR) to FCA solo-regulated firms, including claims management companies. In January 2019, in CP 19/4 we consulted on changes to optimise the SM&CR.
This Policy Statement summarises the feedback we received to Consultation Paper 19/4, our response to the feedback and sets out our final rules. These rules are relevant to all SM&CR firms, including CMCs.
In general, we have implemented the proposed changes to the SM&CR as consulted on, which include:
- confirming that the Head of Legal function is excluded from the requirement to be approved as a Senior Manager
- clarifying the requirements and scope of the Certification Regime
- extending Senior Manager Conduct Rule 4 (SC4) to non-approved Executive Directors at Limited Scope firms
For more information, please read the policy statement on our website.
What is the impact of the Policy Statement for Solo-Regulated firms?
Solo-regulated firms should be preparing for SM&CR which comes into effect on 9 December 2019. They should read the policy statement to understand how the changes may affect them. For more information, firms can visit our website https://www.fca.org.uk/SMCR.
Please also note: We will publish the summary findings of our SM&CR Banking Stocktake Report in early August and will send a copy of that for your information.