SMF Handover Policy

SMF Handover PolicyUnder the Senior Managers Regime, SYSC 25.9.4 of the FCA Handbook advises that Enhanced firms must take reasonable steps to ensure that a person becoming or taking over a role of a Senior Management Function (SMF) Manager, must be provided with adequate information and materials to enable them to carry out the job and their duties compliantly and effectively.

The Handbook states that this means having a structured SMF Handover Policy in place that describes how it complies with SYSC 25.9.4R, including details of the systems and controls it uses for SMF handovers.

Enhanced firms must take all reasonable steps to ensure that any person taking a Senior Manager role, has been provided with all the information and materials necessary to carry out their job effectively. This should include the existing SMF Manager being involved in drafting and/or reviewing the handover materials and procedures to ensure they comply with the existing role and duties.

SMF Handover Guidance

  • The information and materials should contain information about: –
    • any unresolved or possible breaches of the requirements of the regulatory system
    • any unresolved concerns expressed by the FCA, the PRA or another regulatory body
  • The information be should: –
    • be aimed at helping the SMF Manager with their new or revised responsibilities and duties
    • be practical and helpful information with specific guidance and examples (i.e. not just a record)
    • include an assessment of what issues should be prioritised
    • include judgement and opinion from the existing SMF Manager (i.e. not just contain facts and figures)
  • There should be an time and resources allocated to ensure that there is an orderly transition
  • The SMF predecessor should contribute to the information and materials, including any content that is based upon their opinion and is considered relevant
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