SMCR for Solo-Regulated Firms
The FCA have now extended the Senior Managers and Certification Regime (SM&CR) to approx 47,000 firms from 9th December 2019, which includes senior managers and certification staff within those firms. The extension of the SMCR aims to make Senior Managers and certain employees within financial services organisations accountable for their own actions and competence.
The FCA’s publication on 9th December 2019 advises that the SM&CR “encourages greater individual accountability and sets a new standard of personal conduct in financial services by: –
- ensuring senior managers are accountable for conduct in their areas of responsibility
- ensuring a minimum standard of behaviour for everybody working in the sector through our 5 Conduct Rules
- enhancing professionalism in the industry by requiring firms to certify that their staff are fit and proper”
Those firms who now have obligations under the SMCR should have a robust Senior Managers Regime compliance program and controls in place from 9th December 2019 to ensure that they comply with the new rules, requirements and assessment criteria.
Whilst the FCA Handbook requirements are enforced from the 9th December 2019, solo-regulated firms will have a further 12 months to develop and implement certain areas of the SM&CR. Before 9 December 2020, solo-regulated firms will need to ensure: –
- all relevant staff are trained on the Conduct Rules and how they apply to their roles
- all staff in certified roles are fit and proper to perform that role and are issued with a certificate
- they submit data to the FCA for the directory of key people working in financial services
SMCR Guidance
Know Your Compliance Limited have developed some key templates and policies to help firms implement the SM&CR into their organisation and to assist in assessing and certifying key staff. Read more about our SMCR Toolkit.
Start your preparation now with FCA Guidance