The FCA has published Consultation Paper 15/22: Strengthening accountability in banking: Final rules (including feedback on CP14/31 and CP15/5) and consultation on extending the certification regime to wholesale market activities (CP15/22). In CP15/22 the FCA provides commentary and publishes final rules on the senior managers’ regime (SMR) and certification regime for banks and other relevant firms, as consulted on in three separate papers:
- Consultation Paper 14/13: Strengthening accountability in banking: a new regulatory framework for individuals, which the FCA included feedback on in Consultation Paper 15/5: Approach to non-executive directors in banking and Solvency II firms & Application of the presumption of responsibility to senior managers in banking firms and Consultation Paper 15/9: Strengthening accountability in banking: a new regulatory framework for individuals – Feedback on FCA CP14/13;
- Consultation Paper 14/31: Strengthening accountability in banking: forms, consequential and transitional aspects; and
- Consultation Paper 15/5: Approach to non-executive directors in banking and Solvency II firms & Application of the presumption of responsibility to senior managers in banking firms.
Whilst most of CP15/22 is a Policy Statement, chapter 6 is separate. In it the FCA is consulting on amendments to its rules in regard to the certification of individuals involved in wholesale activity, such as trading. The FCA is consulting on amending the regime to ensure that such individuals who could pose significant harm to the firm or its customers are subject to the certification regime. In addition, the FCA is consulting on amendments to remove the territorial limitation for material risk takers in its certification regime and conduct rules. The FCA’s proposals in chapter 6 apply to both UK relevant firms and incoming branches of overseas relevant firms. The deadline for comments on chapter 6 is 7 September 2015.
In CP15/22 the FCA sets out a high level “road map” to the new accountability regime:
- consequential amendments to other parts of the FCA Handbook – summer 2015;
- feedback and near-final rules on incoming branches of overseas firms – summer 2015;
- consultation paper on regulatory references – autumn 2015;
- final guidance on presumption of responsibility and other enforcement-related matters – autumn 2015;
- final rules on the inclusion of wholesale activities in the certification regime – in time for commencement of the regime in March 2016;
- final rules on regulatory references – in time for commencement of the regime in March 2016;
- final rules on incoming branches of overseas firms – date dependent on legislation;
- electronic grandfathering forms become available for submission – autumn 2015;
- commencement date of SMR and certification regime – 7 March 2016;
- first annual submission notifying breaches of the conduct rules required for staff included in the certification regime – end October 2016;
- application of conduct rules to staff who are not within the SMR or certification regime – 7 March 2017; and
- first annual submission notifying breaches of the conduct rules including staff who are not within the SMR or certification regime – end October 2017.
