SMCR for Solo-Regulated Firms
The FCA extended the Senior Managers and Certification Regime (SMCR) to approx 47,000 firms in December 2019. Subsequently, this included new rules for senior managers and certification staff within those firms. The extension of the SMCR makes Senior Managers and certain employees accountable for their actions and competence.
The FCA’s publication on 9th December 2019 advised that the SM&CR “encourages greater individual accountability and sets a new standard of personal conduct in financial services”. Furthermore, these standards: –
- ensure senior managers are accountable for conduct in their areas of responsibility.
- ensure a minimum standard of behaviour for everybody working in the sector through the Conduct Rules.
- enhance professionalism in the industry by requiring firms to certify their staff as fit and proper.
Those with obligations under the SMCR must have adequate and effective policies and controls in place. Accordingly, a Senior Managers Regime compliance program means identifying, assessing and monitoring compliance with the rules. The Handbook SMCR rules were enforced from December 2019. Firstly, this means all relevant staff must have Conduct Rules training. Secondly, staff in certified roles must be assessed and certified as being fit and proper to perform their role. Lastly, firms must submit data to the FCA for the directory of key people.
SMCR Guidance
Know Your Compliance Limited have developed key templates and policies to help firms implement the SMCR into their business. These documents will assist you in assessing and certifying key staff. Read more about our SMCR Toolkit.
Start your preparation now with FCA Guidance