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01/09/2017

UK - FCA proposal to extend the Senior Managers & Certification Regimes

On 26 July 2017, the Financial Conduct Authority (FCA) has published proposals to extend the “Senior Managers and Certification Regimes” (SM&CR) to almost all regulated firms. The new regime will essentially replace the Approved Persons Regime.

On 26 July 2017, the Financial Conduct Authority (FCA) has published proposals to extend the “Senior Managers and Certification Regimes” (SM&CR) to almost all regulated firms. The new regime will essentially replace the Approved Persons Regime. The FCA proposes three parts to the SM&CR:

  • 1- Five Conduct Rules that will apply to all financial services staff at FCA authorised firms. This simple set of rules means that individuals must act with integrity, act with due care, skill and diligence, be open and cooperative with regulators, pay due regard to customer interests and treat them fairly, and observe proper standards of market conduct.
  • 2 - The responsibilities of Senior Managers will be clearly set out and, should something in their area of responsibility go wrong, they can be personally held to account. The Senior Managers will be approved by the FCA and appear on the FCA Register.
  • 3 - Under the Certification Regime, firms will certify individuals for their fitness, skill and propriety at least once a year, if they are not covered by the Senior Managers Regime but their jobs significantly impact customers or firms.