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

    OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.

    April 25, 2024 WebPage Regulatory News
    News

    BIS and Central Banks Experiment with GenAI to Assess Climate Risks

    A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe

    March 20, 2024 WebPage Regulatory News
    News

    Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures

    Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.

    March 18, 2024 WebPage Regulatory News
    News

    Singapore to Mandate Climate Disclosures from FY2025

    Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies

    March 18, 2024 WebPage Regulatory News
    News

    SEC Finalizes Climate-Related Disclosures Rule

    The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.

    March 07, 2024 WebPage Regulatory News
    News

    EBA Proposes Standards Related to Standardized Credit Risk Approach

    The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU

    March 05, 2024 WebPage Regulatory News
    News

    US Regulators Release Stress Test Scenarios for Banks

    The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).

    February 28, 2024 WebPage Regulatory News
    News

    Asian Governments Aim for Interoperability in AI Governance Frameworks

    The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.

    February 28, 2024 WebPage Regulatory News
    News

    EBA Proposes Operational Risk Standards Under Final Basel III Package

    The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.

    February 26, 2024 WebPage Regulatory News
    News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News
    RESULTS 1 - 10 OF 8958