Following a request from FCA, HM Treasury issued the statutory instrument to delay, from December 09, 2020 to March 31, 2021, the deadline for solo-regulated firms to have undertaken the first assessment of the fitness and propriety of their Certified Persons. In line with this development, FCA consulted to change this date in the FCA Handbook. FCA is now working to finalize its proposals and intends to publish final rules and responses to feedback in a policy statement in October 2020. FCA still plans to publish details of certified employees of solo firms starting from December 09, 2020 on the Financial Services Register. In case firms are able to provide this information before March 2021, FCA encourages them to do so.
To ensure that the Senior Managers and Certification Regime (SM&CR) deadlines remain consistent and to provide extra time for firms that need it, FCA intends to consult on extending the deadline for the following requirements:
- Date the conduct rules come into force
- Deadline for submission of information about Directory Persons to the Financial Services Register
- References, in its rules, to the deadline for assessing Certified Persons as fit and proper (which has been agreed by the Treasury)
FCA received predominantly positive feedback to the corresponding changes recommended in the consultation. To give regulated firms certainty, FCA intends to consult alongside parliamentary process, to allow it to finalize its policy as soon as possible. Firms should continue with their programs of work in these areas and, if they are able to certify staff earlier than March 2021, they should do so. Firms should not wait to remove staff who are not fit and proper from certified roles. The Certification Regime and reporting of Directory Persons do not apply to benchmark administrators, so FCA does not intend to move the deadline for benchmark administrators. Benchmark administrators have until December 2021 to train non-Senior Manager staff in the Conduct Rules.
Keywords: Europe, UK, Banking, Insurance, Solo Regulated Firms, SM&CR, Operational Risk, HM Treasury, FCA
Previous ArticleFCA Held DataSprint to Develop Datasets for Digital Sandbox Pilot
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.