The senior management and certification regime (SMCR) replaced the approved persons regime in 2019. Senior managers at a firm who performed functions that are designated as senior management functions by the FCA must be approved by the FCA. Other staff who are not deemed senior managers will be covered by the certification regime, i.e., the CR in SMCR. Here are some rules about SMCR that are worth knowing:
- A ‘statement of responsibilities’ should be set out that prescribes duties to senior managers.
- Firms can be ‘enhanced’ which tightens requirements further.
- Senior managers are subject to a ‘duty of responsibility’ which means they could personally be held responsible for failures.
- Even if an employee is not a senior manager, they could still cause harm so they are subject to the certification regime.
- External references may be required for staff to get FCA approved.
- All staff must comply with conduct rules.
- Firms should make the FCA aware of any conduct breaches.
The rules and specific requirements can change fairly frequently, so it is important to consult with the official documentation on the FCA’s website, and have a compliance system in place that keeps up to date with any developments.
To the pound 