Featured Product

    FCA Policy Statements on Extension of SM&CR to Firms and Insurers

    July 04, 2018

    FCA published the policy statements PS18/14 and PS18/15 on extending the Senior Managers & Certification Regime (SM&CR) to FCA firms and insurers, respectively. PS18/14 summarizes the feedback received on consultation papers CP17/25 (Part 1) and CP17/40 (Part 2) and sets out the FCA response to this feedback. PS18/15 sets out the response to the feedback received on CP17/26 and CP17/41. Additionally, FCA published cost-benefit analysis related to PS18/14 and PS18/15, along with the guides on SM&CR for FCA solo-regulated firms and for insurers. FCA firms affected by the changes will move to the new regime on December 09, 2019, while insurers will move to the new regime on December 10, 2018.

    PS18/14—FCA received 225 responses to the proposals in CP17/25 and 47 responses to the proposals in CP17/40. FCA made minor changes to the policy proposals as a result of the feedback. The legal instrument accompanying PS18/14 contains near‑final rules. Although the rules are near‑final in most respects, they may be amended by the subsequent Handbook changes—for example, those related to Brexit or SM&CR optimizations. However, the rules are not near‑final in respect of benchmark activities, an approach to which FCA will consult on separately. These rules are subject to commencement regulations to be made by HM Treasury.  

    PS18/15—The Policy Statement sets out changes to how FCA regulates employees of insurance firms. The SM&CR replaces FCA’s revised APR and amends PRA’s Senior Insurance Managers Regime (SIMR), which currently apply to insurers. FCA received 21 responses to the proposals in CP17/26 and ten responses to the proposals in CP17/41, which includes responses from firms and trade associations. FCA will implement the proposals set out in CP17/26 and CP17/41, as proposed. The legal instrument accompanying PS18/15 contains near-final rules. Although the rules are near-final in most respects, they may be amended by the subsequent Handbook changes—for example, those related to Brexit or SM&CR optimizations. The rules are subject to commencement regulations to be made by HM Treasury. Chapter 9 of PS18/15 describes transitional arrangements for insurance firms. 

     

    Related Links (PDF)

    Effective Date: December 09, 2018 (Firms); December 10, 2018 (Insurers)

    Keywords: Europe, UK, Banking, Insurance, Solvency II, SM&CR, SIMR, PS18/14, PS18/15, FCA

    Featured Experts
    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153