United Kingdom

Topic: Senior Managers

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SM&CR: FCA guidance consultation on statements of responsibilities and responsibilities maps for FCA firms

On 11 October 2018, the FCA published a guidance consultation relating to the senior managers’ and certification regime (SMCR). The guidance consultation concerns statements of responsibilities and responsibilities maps for FCA firms. The guidance sets out the purpose of statement of responsibilities and responsibilities maps, provides some questions for firms to ask themselves and outlines … Continue Reading

FCA Releases Near Final Rules on SMCR Extension to the rest of the FS Industry and confirms implementation date

Today, the FCA published the long-awaited near final rules on the extension of the SMCR to those firms regulated by the FCA only: PS18/14 – Extending the Senior Managers and Certification Regime to FCA firms The Senior Managers and Certification Regime: Guide for FCA solo-regulated firms PS18/15 – Extending the Senior Managers and Certification Regime … Continue Reading

The Duty of Responsibility for FCA solo-regulated firms

The FCA has published Consultation Paper 17/42: The Duty of Responsibility for insurers and FCA solo-regulated firms (CP17/42). In CP17/42 the FCA consults on extending the duty of responsibility (that already applies to firms currently subject to the Senior Managers and Certification Regime (SM&CR)) to FCA solo-regulated firms and insurance and reinsurance firms. In CP17/42 … Continue Reading

CP17/40: Transitioning FCA firms and individuals to the SM&CR

In July 2017, the FCA published a Consultation Paper in which it proposed changes that would extend the senior managers and certification regime (SM&CR) to FCA solo-regulated firms (our blog is here). At the time of this consultation the FCA stated that it would separately consult on the operational aspects of the new regime, including … Continue Reading

PRA publishes Policy Statement on SMR form changes

The PRA has published Policy Statement 24/17: Strengthening accountability in banking: changes to SMR forms (PS24/17). In PS24/17 the PRA provides feedback to the responses to chapter 4 of Consultation Paper 8/17: Strengthening accountability in banking and insurance: optimisations to the SIMR, and changes to SMR forms (CP8/17). In CP8/17 the PRA proposed a number … Continue Reading

Extending the senior managers’ regime

Introduction The FCA has published two consultation papers extending the senior managers and certification regime which is already in place in the banking sector. The consultation papers are: Consultation Paper 17/25: Individual accountability – extending the senior managers and certification regime to all FCA firms (CP17/25); and Consultation Paper 17/26: Individual accountability: extending the senior … Continue Reading

Senior Managers’ Regime and the FCA Asset Management Market Study

An important part of the FCA’s Asset Management Market Study are the proposals that seek to strengthen the requirements on senior managers of an authorised fund manager (AFM). Key among these proposals is an extension of the senior managers’ regime (SMR) to certain AFM board members. Respondents to the FCA’s November 2016 interim report suggested … Continue Reading

Senior Managers’ and Certification Regime Toolkit

On 3 May 2017, the financial services team held its latest 40 minute briefing – Senior Managers’ Regime: Extension, Proportionality and Lessons Learnt.  The briefing covered: Who will the extension apply to? Latest thinking from the regulator on proportionality Lessons learnt from the banking sector’s experience with implementing the regime – financial services law matters … Continue Reading

Senior Managers’ Regime update

Both the PRA and the FCA have published a number of policy papers updating the Senior Managers’ Regime (SMR), Certification Regime (CR) and Conduct Rules. The following is a summary. PRA – Regulatory references The PRA has published Policy Statement 27/16: Strengthening accountability in banking and insurance: PRA requirements on regulatory references (part II) (PS27/16). … Continue Reading

Industry Associations’ call on the FCA to exclude general counsel from the Senior Managers’ Regime

The British Bankers’ Association (BBA) and the Association for Financial Markets in Europe (AFME) have published a joint letter that they have sent to the FCA on the application of the senior managers’ regime (SMR) to individuals with overall responsibility for the legal function in banks. The BBA and AFME are concerned that if the … Continue Reading

Countdown to the Senior Managers and Senior Insurance Managers regimes

The implementation of the Senior Managers and Senior Insurance Managers regimes occurs on 7 March. The PRA has updated its webpage on these regimes noting that if a firm: has submitted its grandfathering notification, received an automated response confirming receipt of their submission, and have not heard more from the FCA and/or the PRA this … Continue Reading

Senior Managers Regime: regulatory references

Overview The Senior Managers Regime comes into force on 7 March 2016. One element of the Senior Managers Regime is regulatory references, as recommended by The Fair and Effective Markets Review (FEMR) to “help firms prevent the ‘recycling’ of individuals with poor conduct records between firms”. This article sets out the current rules relating to … Continue Reading

New briefing note: Proposals announced to change the Senior Managers’ and Certification Regimes

We have published a new briefing note which looks at some of the changes brought about to the Senior Managers’ and Certification Regimes by the Bank of England and Financial Services Bill. Specifically, the briefing note looks at: extension of the regime; removal of the presumption of responsibility and the reversal of the burden of … Continue Reading

FCA statement following HMT announcement of changes to the Senior Managers’ Regime

The FCA has published a short statement following the HM Treasury announcement that it plans to make changes to the Senior Managers’ and Certification Regime, which was introduced by the Financial Services (Banking Reform) Act 2013. Tracey McDermott, acting chief executive of the FCA, said: “Extending the Senior Managers’ and Certification Regime is an important … Continue Reading

Extending the Senior Managers’ Regime to all FSMA authorised persons

HM Treasury has published a policy paper entitled Senior Managers’ and Certification Regime: extension to all FSMA authorised persons. In the policy paper the UK Government proposes to extend the senior managers regime, certification regime and new conduct rules to all authorised financial services firms including mortgage brokers and consumer credit firms. Chapter 4 of … Continue Reading

PRA and FCA consult on changes to forms for Senior Managers’ Regime

The PRA and FCA have issued a joint consultation paper on amendments to a number of forms relating to the new Senior Managers’ Regime (SMR), Senior Insurance Managers’ Regime and other forms used in the current approved persons regime. The proposed changes to the forms alter the questions to ensure the regulators only require necessary … Continue Reading

Joint FCA and PRA Consultation Paper on applying senior managers’ and certification regimes to UK branches of foreign banks

On 3 March 2015, HM Treasury announced that it would apply the senior managers’ and certification regimes to all firms, including to UK branches of foreign banks. The FCA and PRA have now published a joint Consultation Paper 15/10: Strengthening accountability in banking: UK branches of foreign banks (CP15/10). In CP15/10 the PRA and FCA … Continue Reading

FCA issues Feedback Statement and additional Consultation Paper on senior managers’ and certification regimes

In July 2014, the FCA and PRA published a joint consultation paper that aimed to improve individual responsibility and accountability in the banking sector. The proposals were designed to create a new approval regime for the most senior individuals whose behaviour and decisions have the potential to cause a bank to fail or to cause … Continue Reading
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