- The FCA issued their Consultation Paper, CP 19/4 on optimising the Senior Managers and Certification Regime on 23rd January 2019.
- The Consultation is open until 23rd April 2019 for online or emailed responses.
- The Consultation seeks to provide clarity on certain aspects of the SM&CR regime including the FCA’s position with regard to the inclusion of the firm’s legal function within the SM&CR regime.
- The FCA proposes to exclude the legal function from the Overall Responsibility Requirement, the Head of Legal is excluded from SMR.
- Amending the intermediary revenue criteria for the Enhanced Tier – the FCA proposes a notification requirement to bring intermediaries, with regulated revenue of more than £35m that do not complete RMA-B into the scope of the Enhanced regime.
- The scope of the Client Dealing Function in the Certification Regime is altered to allow firms to exclude purely administrative roles that involve ‘taking part in’ investment activities.
- Including the Systems & Controls Function in the Certification Regime – it is proposed that the Certification Regime applies to individuals performing roles that were Systems and Controls functions under the Approved Persons Regime, but which are no longer approved under the SM&CR.
- Applying Senior Manager Conduct Rule 4 to non-approved executive directors at Limited Scope firms It is proposed to apply Senior Manager Conduct Rule 4 (SC4), in COCON 2.2 of the Handbook, to non-approved executive directors at Limited Scope firms to ensure that executive and non-executive directors at these firms are subject to equivalent requirements. SC4 requires relevant individuals to disclose appropriately any information of which the FCA would reasonably expect notice.
- Additional minor changes to the Handbook are proposed to ensure all rules reflected appropriately.
- This Consultation closes on 23rd April 2019 with a Policy Statement to follow in Q3, 2019.
Associated Regulatory Updates
- The Senior Managers and Certification Regime, “SM&CR”
- Whitepaper – Financial Crime Prevention – Know Your Management Responsibilities under SM&CR
- Whitepaper – Senior Management and Certification Regime – the new politics?
- Whitepaper – The Senior Management and Certification Regime: Individual Accountability = Individual Liability
- News – The Senior Management and Certification Regime – Calling All Insurance Firms, are you ready for December 10th 2018?
- Blog – The New Senior Management and Certification Regime – Are you taking reasonable steps?