Featured Product

    FCA Issues Final Rules on Extension of SM&CR to Solo-Regulated Firms

    July 26, 2019

    FCA published a policy statement (PS19/20) on final rules on the extension of the Senior Managers and Certification Regime (SM&CR) to FCA solo-regulated firms, including claims management companies. Additionally, PS19/20 specifies final rules on a new Directory of individuals working in financial services. SM&CR will apply to the solo-regulated firms from December 2019. PS19/20 also summarizes FCA response to the feedback received on the consultation paper CP19/4 on optimizing the SM&CR, which FCA had published in January 2019.

    FCA has received 29 responses to CP19/4. Most respondents were supportive of the proposals. In some cases, respondents asked for further clarification on how the rules would apply. In a small number of cases, respondents opposed the proposals or suggested changes to the proposed rules. In general, FCA has implemented the proposed changes to SM&CR. The main changes to the existing rules discussed in PS19/20 include:

    • Confirming that the Head of Legal function is not required in Senior Managers Regime
    • Amending the intermediary revenue criterion for the Enhanced regime
    • Clarifying the requirements and scope of the Certification Regime
    • Extending Senior Manager Conduct Rule 4 (SC4) to non-approved Executive Directors at Limited Scope firms

    The legal instrument accompanying PS19/20 contains final rules needed to commence the SM&CR for solo-regulated firms and to deal with the other issues. As with other rules, they may still be amended by subsequent Handbook changes—for example those related to the exit of UK from EU. The legal instrument does not significantly differ from CP19/4 and the near-final rules. Firms, including authorized claims management companies, affected by these changes will move to the new regime on December 09, 2019. Handbook references in PS19/20 refer to the rules set out in the accompanying Instrument. For claims management companies still operating on a temporary permission on December 09, 2019, the rules will apply from the date the firm is fully authorized. The approach to these firms is set out in PS19/9 and in the final rules in the Instrument that accompanies this PS19/20.

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance, SM&CR, PS19/20, CP19/4, FCA

    Related Articles
    News

    APRA Publishes Proposal to Increase Transparency of Banking Data

    APRA proposed to substantially increase the volume and breadth of data it makes publicly available on authorized deposit-taking institutions, including banks, credit unions, and building societies.

    December 05, 2019 WebPage Regulatory News
    News

    ESMA Consults on Guide to Internal Controls for Credit Rating Agencies

    ESMA launched a consultation on the guidelines on internal controls for credit rating agencies (CRAs).

    December 05, 2019 WebPage Regulatory News
    News

    EU Finalizes Directive and Prudential Rules for Investment Firms

    EU published, in the Official Journal of the European Union, the Directive (2019/2034) and Regulation (2019/2033) on the prudential requirements and supervision of investment firms.

    December 05, 2019 WebPage Regulatory News
    News

    OSFI Revises Guideline on Principles for Management of Liquidity Risk

    OSFI finalized Guideline B-6 on the principles for the management of liquidity risk.

    December 05, 2019 WebPage Regulatory News
    News

    PRA Consults on Framework to Manage Outsourcing and Third-Party Risk

    PRA published a consultation paper CP30/19 that sets out proposals to modernize the regulatory framework on outsourcing and third-party risk management.

    December 05, 2019 WebPage Regulatory News
    News

    BoE, PRA, and FCA Consult to Strengthen Operational Resilience

    BoE, PRA, and FCA published a shared policy summary and coordinated consultation papers on new requirements to strengthen operational resilience in the financial services sector.

    December 05, 2019 WebPage Regulatory News
    News

    EC Amends Rule on Mapping of External Credit Assessment Institutions

    EC published the implementing regulation (EU) 2019/2028, which amends Regulation 2016/1799, regarding the mapping tables specifying correspondence between the credit risk assessments of external credit assessment institutions (ECAIs) and the credit quality steps set out in the Capital Requirements Regulation.

    December 04, 2019 WebPage Regulatory News
    News

    EBA Issues Second Part of Advice on Implementation of Basel III in EU

    EBA published the second part of its advice on the implementation of Basel III in EU, which complements the report published on August 05, 2019.

    December 04, 2019 WebPage Regulatory News
    News

    EU Approves European Council Proposal on CCP Recovery and Resolution

    EU ambassadors approved the position of European Council on a proposed framework for clearing houses and their authorities to prepare for and deal with financial difficulties.

    December 04, 2019 WebPage Regulatory News
    News

    OSFI Releases Guideline on Foreign Bank Branch Deposit Requirements

    OSFI released the final version of Guideline A-10 on foreign bank branch deposit requirements, along with guideline impact analysis statement.

    December 04, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4268