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
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
The FCA has updated its web page on the Senior Managers and Certification Regime by stating that it intends to consult on the extension of the regime to all FSMA authorised firms during Q2 2017. View FCA web page – Senior Managers and Certification Regime, 23 February 2017… Continue Reading
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
We have published a short video on the senior managers’ regime and its impact on non-executive directors. The video can be viewed here… Continue Reading
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
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
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
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
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
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
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
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
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
HM Treasury has published its response to its November 2014 consultation on regulating individual conduct in UK branches of foreign banks. The response notes that although respondents raised a number of concerns, they generally accepted that the senior managers’ and certification regimes (SM&CR) should apply to UK branches of foreign banks.… Continue Reading
The FCA has published Consultation Paper 15/5: Approach to non-executive directors in banking and Solvency II firms & Application of the presumption of responsibility to senior managers in banking firms (CP15/5). In CP15/5 the PRA and FCA set out their revised approach to independent non-executive directors (NEDs) in UK banks, building societies, credit unions and … Continue Reading
The Financial Services (Banking Reform) Act 2013 (the Act) created a legal framework for the senior managers’ regime and certification regime in the UK banking sector. The Act also gave HM Treasury the power to extend the reforms to cover UK branches of third country banks and certain third country investment firms by statutory instrument … Continue Reading
The Financial Services (Banking Reform) Act 2013 (Commencement No 5) Order 2014 (the Order) was published on legislation.gov.uk website. The Order was made on 9 July 2014.… Continue Reading
HM Treasury has published a letter sent by George Osborne, Chancellor of the Exchequer, to Dr Mark Carney, Bank of England Governor, and a letter sent by Mr Osborne to John Griffith-Jones, FCA Chairman. The letters relate to HM Treasury’s proposal to extend the senior managers and certification regime (SM&CR) to UK branches of foreign … Continue Reading
