On 11 September 2019, the FCA published further information for FCA solo-regulated firms concerning the extension of the senior managers and certification regime (SMCR).
The FCA has updated its webpage on checklists for solo-regulated firms implementing SMCR to include additional information in relation to Form K, the form that firms must submit to the FCA to notify it of which currently approved individuals should be converted to a senior management function (SMF). This information is applicable to enhanced firms. Form K is located in Connect, under the ‘Approved persons’ tab.
Form K must be submitted by 11.59 pm on 24 November 2019. Firm’s SMFs will appear on the financial services register on 9 December 2019. The FCA advises that on or shortly after 9 December 2019, firms should check the financial services register to ensure they have the correct SMFs.
In addition, the FCA has also updated its webpage on the conversion from the Approved Persons Regime to the SMCR to include a section with information for sole traders. The new section explains that sole traders will be categorised as limited scope firms, therefore the only SMFs that will apply are SMF29 (Limited scope function) and SMF16 (Compliance oversight function). It also states that the certification regime does not apply to a sole trader as an individual, but may apply to their employees. The conduct rules will also not apply to a sole trader as an individual unless they hold an SMF yet will apply to their employees (unless they perform one of the excluded ancillary roles).