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FCA PS20/12 – extending implementation deadlines for SM&CR Rules

FCA PS20/12 – extending implementation deadlines for SM&CR Rules

Background

  • On 28 October 2020, the FCA published its Policy Statement PS20/12 (“Extending the implementation deadlines for the Certification Regime and Conduct Rules”) with related Handbook Rules.
  • This published Policy Statement is important for most organisations within UK financial services by the Senior Managers & Certification Regime (SM&CR) Rules.
  • Following a request from the FCA earlier in 2020, HM Treasury had made a statutory instrument to delay the deadline for solo-regulated firms to have undertaken the first assessment of the fitness and propriety of their Certified staff from 9 December 2020 until 31 March 2021.
  • In July 2020, the FCA consulted (from 17 July to 14 August) to change to the same date (31 March 2021), the deadline for certification in the FCA Handbook. The FCA also consulted to give corresponding extensions to the deadline for training staff in the Conduct Rules and reporting Directory Person data.

Impacts

These changes affect:

  • all FCA solo-regulated firms authorised to provide financial services under the Financial Services and Markets Act 2000 (FSMA)
  • Appointed Representatives (ARs) in scope of the extension to the reporting deadline for Directory Persons

These changes do NOT apply to benchmark administrators.

This PS confirms that the FCA will extend the deadline for the following requirements correspondingly from 9 December 2020 to 31 March 2021 as consulted on:

  • the date the Conduct Rules come into force, for employees who are not Senior Managers, Certification Staff or board directors
  • the date by which relevant employees must have received training on the Conduct Rules (this automatically follows from the extension in the previous bullet point)
  • the deadline for submission of information about Directory Persons to the Register
  • references in the FCA’s rules to the statutory deadline for assessing Certified Persons as fit and proper following agreement with the Treasury

Timeline with relevant dates to be logged on regulatory calendar

  • The revised FCA deadline for compliance with SM&CR Rules is 31 March 2021

Next steps

All organisations need to meet the relevant rules and requirements.

The FCA encourages all firms to meet the original deadline of 9 December 2020 wherever possible.  Firms must remain in contact as usual with their assigned FCA supervisors.

If anyone has specific questions or needs any advice, contact our specialists.