On 20 July 2021, HM Treasury issued a consultation document detailing a proposed Senior Managers and Certification Regime (SMCR) for financial market infrastructures (FMIs) supervised by the Bank of England (BoE). In practice, the FMIs are central counterparties, central securities depositories and payment systems recognized under the Banking Act 2009, and specified service providers to these recognized payment systems. The key features of the proposed SMCR for FMIs are intended to be similar to the existing SMCR for banks, insurers and other authorized persons as set out in Part 5 of the Financial Services and Markets Act 2000 (FSMA) but modified to recognize the fact that FMIs are not authorized persons within the FSMA meaning of the term.

Chapter 2 of the consultation document explains what FMIs do and their importance to the financial system. Chapter 3 sets out how the proposed framework for the SMCR for FMIs would work. Chapter 4 lists the consultation questions and explains how to respond to the consultation.

The deadline for comments on the consultation document is 22 October 2021.

The government intends to legislate for this new regime when parliamentary time allows. Under the new regime, the BoE would be given new rule making powers, such as the power to designate Senior Management Functions at FMIs and the power to make conduct rules. Through these rule making powers, the BoE would be able to ensure that the new regime is applied in the most effective and proportionate manner to each specific subset of FMI. The BoE would publicly consult on these new rules in advance of them coming into effect.