United Kingdom

Topic: Senior Managers

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Patisserie Valerie charges preview impact of new failure to prevent fraud offence

The recent Patisserie Valerie charges against four individuals provide a preview of the type of scenario in which companies could be investigated under the new failure to prevent fraud offence as well as the expanded test for corporate criminal liability. In this blog, we outline the charges brought by the SFO, provide an update on … Continue Reading

PRA publishes Policy Statement on moving Senior Managers Regime forms from the PRA Rulebook

On 9 May 2023, the Prudential Regulation Authority (PRA) published Policy Statement PS4/23: Moving Senior Managers Regime forms from the PRA Rulebook. PS4/23 provides feedback to responses to Consultation Paper CP2/23 and contains the PRA’s final policy on its proposed changes to the Senior Managers Regime (SMR) forms. Previous consultation In CP2/23, the PRA proposed … Continue Reading

FCA and PRA publish joint Discussion Paper on the review of the SMCR

On 30 March 2023, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) jointly published Discussion Paper 1/23: Review of the Senior Managers and Certification Regime (DP23/3). DP23/3 follows the Government’s announcement in December 2022, as part of the Edinburgh Reforms, that HM Treasury, the FCA and the PRA would commence separate reviews … Continue Reading

HM Treasury publishes SMCR Call for Evidence

On 30 March 2023, HM Treasury published a Call for Evidence (CfE) on the Senior Managers and Certification Regime (SMCR). The CfE follows the Government’s announcement in December 2022, as part of the Edinburgh Reforms, that HM Treasury, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) would commence separate reviews of the … Continue Reading

Edinburgh Reforms – SMCR

As part of the Edinburgh Reforms the Chancellor of the Exchequer issued a Ministerial Statement which announced that the Government would launch a review of the Senior Managers and Certification Regime (SMCR) in Q1 2023. The SMCR was introduced by The Financial Services (Banking Reform) Act 2013 (which amended the Financial Services and Markets Act … Continue Reading

FCA statement on IFPR eligibility for enhanced SM&CR status as a Significant SYSC firm

On 16 August 2022, the Financial Conduct Authority (FCA) published a statement on the Investment Firm Prudential Regime (IFPR) and eligibility for enhanced Senior Managers and Certification Regime (SM&CR) status as a Significant SYSC firm. The statement provides that, since the FCA provided a new definition of ‘significant SYSC firm’, stakeholders have highlighted that the … Continue Reading

HM Treasury consultation response – SMCR for FMIs

On 7 June 2022, HM Treasury published the consultation response to its earlier consultation on a senior managers and certification regime (SM&CR) for financial market infrastructures (FMIs). Key points in the consultation response include: The UK Government believes that creating an SM&CR for FMIs remains a desirable and effective means of achieving its objectives of … Continue Reading

PRA updates web page on strengthening accountability

On 1 June 2022, the PRA amended its web page on strengthening accountability by updating the self-assessment templates and tables section by inserting RPS templates which have since been updated to reflect changes made to the remuneration part of the PRA rule-book following Policy Statement 28/21: Remuneration: identification of material risk takers.… Continue Reading

Inventory of senior manager responsibilities

On 16 December 2021, the Bank of England (BoE) updated its Strengthening Accountability webpage by stating that it has now published an inventory of senior manager responsibilities. The BoE state that this document responds to the feedback in the ‘Evaluation of the Senior Managers and Certification Regime’ report that it would be useful to have … Continue Reading

FCA Dear CEO letter – Wealth Management and Stockbroking Supervision Strategy

On 30 September 2021, the FCA published a Dear CEO letter (dated 16 September 2021) which it had sent to firms active in the wealth management and stockbroking sector. The Dear CEO letter follows up on the FCA’s earlier strategy letter published in June 2019 and provides an update on the regulator’s view of the … Continue Reading

PRA / FCA: Dear Senior Management Function letter: 2021 CBEST thematic findings

On 30 September 2021, there was published a letter that the Bank of England, PRA and FCA had sent to the senior management function (SMF) holder with responsibility for cyber of those firms that had participated in the latest annual cycle of CBEST assessments. CBEST is a framework for intelligence-led penetration testing which focuses on … Continue Reading

PRA PS11/21 – Strengthening accountability: Temporary, long-term absences

On 1 June 2021, the PRA published Policy Statement 11/21 “Strengthening accountability: Temporary, long-term absences” (PS11/21). In PS11/21 the PRA provides feedback to responses to chapter 2 of FCA Consultation Paper 20/23 “Quarterly Consultation Paper No. 30’ (CP20/23). In chapter 2 of CP20/23 the FCA and PRA jointly proposed their expectations regarding temporary, long-term absences … Continue Reading

SM&CR and COVID-19 – regulators’ update their expectations

On 18 December 2020, the following were published: Joint PRA and FCA December 2020 update – SM&CR and COVID-19: our expectations of dual regulated firms. FCA December 2020 update – SM&CR and COVID-19: our expectations for solo-regulated firms. FCA December 2020 update – Approved Persons Regime and COVID-19: our expectations. In April 2020, the PRA … Continue Reading

Evaluation of the Senior Managers and Certification Regime

On 15 December 2020, the PRA published a report Evaluation of the Senior Managers and Certification Regime. The evaluation findings in the report confirm that the introduction of the Senior Managers and Certification Regime (SM&CR) has helped ensure that senior individuals in PRA-regulated firms take greater responsibility for their actions, and has made it easier … Continue Reading

Joint PRA and FCA Chapter ‘Clarifying our expectations for temporary, long-term absences’ within the FCA Quarterly Consultation Paper

On 4 December 2020, the FCA issued Consultation Paper 20/23: Quarterly Consultation Paper No. 30 (CP20/23). In CP20/23 the FCA is consulting on miscellaneous amendments to its Handbook to: Clarify its expectations for temporary, long-term absences (chapter 2). Remove references to collective investment schemes being able to issue bearer certificates, in line with draft Government … Continue Reading

FCA Policy Statement on extending the implementation deadlines for the Certification Regime and Conduct Rules

On 28 October 2020, the FCA published Policy Statement 20/12: Extending the implementation deadlines for the Certification Regime and Conduct Rules (PS20/12). The changes in PS20/12 affect all FCA solo-regulated firms authorised to provide financial services under the Financial Services and Markets Act 2000. Appointed Representatives are in scope of the extension to the reporting … Continue Reading

Publication date for dual and solo regulated firms Directory Persons data

On 27 October 2020, the FCA updated its webpage concerning the Directory of certified and assessed persons. The updated part of the webpage provides that: Dual-regulated firms must submit their Directory Persons data via Connect by no later than 13 November 2020. The FCA will begin to publish this data on the FS Register from … Continue Reading

SI delaying the deadline for solo-regulated firms to undertake their first assessment of the fitness and propriety of certified persons

On 2 September 2020, there was published on legislation.gov.uk The Bank of England and Financial Services Act 2016 (Commencement No. 6 and Transitional Provisions) (Amendment) Regulations 2020. The statutory instrument amends the Bank of England and Financial Services Act 2016 (Commencement No. 6 and Transitional Provisions) Regulations 2019 (the 2019 Regulations) as follows: Regulation 2(2) … Continue Reading

New FCA webpage – REP008: Conduct Rules reporting for solo-regulated firms

On 14 August 2020, the FCA published a new web page concerning the annual conduct rules reporting requirement that the Senior Managers and Certification Regime introduced for solo regulated firms. The report is called REP008 and it has been added to all solo regulated firms’ Gabriel schedules. The web page covers: When to submit REP008. … Continue Reading

FCA consults on extending implementation deadlines for the certification regime and conduct rules

On 17 July 2020, the FCA published Consultation Paper 20/10: Extending implementation deadlines for the certification regime and conduct rules (CP20/10). HM Treasury will lay a Statutory Instrument (SI) before Parliament to delay the deadline to the certification regime until 31 March 2021. The delay is intended to give firms significantly affected by the COVID-19 … Continue Reading

PRA consults on minor changes to its SM&CR forms

On 13 July 2020, the PRA issued Consultation Paper 7/20 ‘Strengthening Accountability: SM&CR Forms update’ (CP7/20). In CP7/20 the PRA proposes minor amendments to the PRA Rulebook, the Notifications Form and the Senior Manager & Certification Regime (SM&CR) Form L. The proposals would result in changes to the Notifications Part of the PRA Rulebook (Appendix … Continue Reading

FCA extends fitness and propriety assessment deadline for solo regulated firms

The Treasury has agreed to delay the date on which solo regulated firms are required to have assessed their certified staff as fit and proper, from 31 December 2020 to 31 March 2021. To ensure SM&CR deadlines remain consistent, and to provide extra time for firms that need it, the FCA intend to consult on … Continue Reading

FCA sets out expectations on the Approved Persons Regime during coronavirus

The Approved Persons Regime (APER) continues to be used by Benchmark Administrators and Appointed Representatives (ARs). In recognition that firms may need longer periods of temporary arrangements if, for example, an Approved Person is absent because of coronavirus, or if recruitment to replace an Approved Person has been delayed due to the pandemic, the FCA … Continue Reading
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