The PRA has published Consultation Paper 8/17: Strengthening accountability in banking and insurance: optimisations to the SIMR, and changes to SMR forms (CP8/17).
Chapter 4 of CP8/17 deals with proposed changes to senior managers’ regime (SMR) forms and is relevant to banks, building societies, credit unions and PRA designated investment firms (collectively known as Relevant Authorised Persons or RAPs).
In Policy Statement 12/17: Strengthening individual accountability in banking and insurance: amendments and optimization (PS12/17) the PRA set out final rules on:
- the extension of certain conduct rules/conduct standards to notified non-executive directors;
- a new Chief Operations PRA senior management function (SMF) for the individual with responsibility for the internal operations and technology of a RAP; and
- a new PRA prescribed responsibility for the RAP’s performance of its obligations under the Outsourcing Part of the PRA Rulebook, to complement the Chief Operations SMF.
Appendix 5 of CP8/17 outlines the proposed consequential changes to the relevant forms, and Appendix 3 of CP8/17 contains the corresponding draft rule instrument to implement these changes.
The PRA proposes that RAPs will be required to submit notifications or applications (using the relevant revised forms) relating to the Chief Operations SMF, the new prescribed responsibility, or changes to their SMF6 (Head of Key Business Area) population from 12 November 2017.
Since the substance of the above policy has already been consulted on and finalised, the consultation period for the consequential changes outlined in Appendix 5 is two months (14 August 2017).