FCA is extending the Senior Managers and Certification Regime (SM&CR) to nearly 47,000 firms, including senior managers and certification staff in those firms. The SM&CR already applies to the banking and insurance sectors and this extension is a key step to create a culture across financial services where individuals step forward and take accountability for their own actions and competence. The extension will affect almost every solo-regulated firm, from very small firms (including sole traders and limited permission consumer credit firms) to some of the largest global firms.
By December 09, 2020 solo-regulated firms will need to ensure:
- All relevant staff are trained on the Conduct Rules and how they apply to their roles
- All staff in certified roles are fit and proper to perform that role and are issued with a certificate
- The staff submit data to FCA for the directory of key people working in financial services
The SM&CR encourages greater individual accountability and sets a new standard of personal conduct in financial services by ensuring that senior managers are accountable for conduct in their areas of responsibility, by ensuring a minimum standard of behavior for everybody working in the sector through the 5 Conduct Rules, and by enhancing professionalism in the industry by requiring firms to certify that their staff are fit and proper.
Keywords: Europe, UK, Banking, Insurance, SM&CR, Conduct Risk, Solo Regulated Firms, Operational Risk, FCA
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