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FCA PS19-20 – Optimising the Senior Managers & Certification Regime

FCA Policy Statement PS19/20: Optimising the Senior Managers & Certification Regime

Background

  • PS19/20: Optimising the Senior Managers & Certification Regime and feedback to CP19/4
  • Published by the FCA on 26 July 2019
  • The FCA made near-final rules on the SM&CR in July 2018 and final rules for insurers in September 2018. The FCA identified a few areas where it needed to make changes and consulted on this in CP19/4 in January 2019.
  • These changes are set out in this Policy Statement and are intended to provide extra clarity in some areas and help firms adjust to the SM&CR.
  • This Policy Statement makes final the FCA’s rules on extending the SM&CR to FCA solo-regulated firms, including claims management companies (CMCs).
  • It also makes final rules on a new Directory of individuals working in financial services.

Impacts

This Policy Statement applies to:

  • Banking firms, Solvency II and large non-directive (NDF) insurers, and enhanced solo-regulated firms.
  • Incoming branches of overseas relevant firms as well as other groups – particularly legal professional bodies.

It may also be of interest to other FSMA-authorised firms that the SM&CR will be extended to, and consumers interested in how the SM&CR operates within relevant firms to enhance individual accountability.

Firms, including authorised CMCs, affected by these changes will move to the new regime on 9 December 2019. Handbook references in this Policy Statement refer to the rules set out in the accompanying Instrument.

For CMCs still operating on a temporary permission on 9 December 2019, the rules will apply from the date the firm is fully authorised. The approach to these firms is set out in PS19/9 and in the final rules in the Instrument that accompanies this PS.

Timeline with relevant dates to be logged on regulatory calendar

  • Policy Statement published on 26 July 2019
  • Firms affected by these changes will move to the new regime on 9 December 2019

Next steps

Prepare for the changes in regulatory requirements.

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