Question: What Are The Senior Management Functions?

What SMF 18?

people who hold ‘overall responsibility’ for activities, functions or areas of the firm require regulator approval under SMF 18.

Overall responsibility means that the person in question has ultimate responsibility for managing or supervising a function with direct responsibility for reporting to the governing body..

What is the aim of SMCR?

The aim of SMCR is to reduce harm to consumers and strengthen market integrity by making firms and individuals at those firms more accountable for their conduct and competence. There are 3 key components which apply to financial service firms, the conduct rules, the senior managers regime and the certification regime.

What are the SMCR conduct rules?

SM&CR: The conduct rulesYou must act with integrity.You must act with due skill, care and diligence.You must be open and cooperative with the FCA, the PRA and other regulators.You must pay due regard to the interests of customers and treat them fairly.You must pay due regard to the interests of customers and treat them fairly.

When did SMCR come into effect?

7 March 2016Senior Managers Regime: approvals. The Senior Managers and Certification Regime (SM&CR) came into force on 7 March 2016, and was extended in full to insurers on 10 December 2018. It was introduced to support a change in culture at firms.

Which regulator oversees the senior manager and certified manager regime?

FCAWho it applies to. Solo-regulated firms are those regulated by the FCA only. The SM&CR replaced the Approved Persons Regime from 9 December 2019.

What are the 3 main elements of the senior managers and certification regime?

There are three main elements to the regime: (1) the senior managers regime; (2) the certification regime; and (3) conduct rules that apply directly to a firm’s workforce.

What is a senior manager under SMCR?

Under the SMCR, “senior managers” are individuals who perform one of the senior management functions designated by the FCA. These replace the ‘significant influence functions’ under the old regime. Senior Managers will need to be approved by the FCA to carry out their senior management function.

How many senior manager conduct rules are there?

fourIn addition a Senior Manager must comply with four specific Senior Manager Conduct rules. These are: SC1 :You must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively (COCON 2.2. 1)

What is SMF 24?

2.11A Senior Management Functions 3.8 defines the Chief Operations function (SMF24) as ‘the function of having responsibility for the internal operations and technology of a firm’.

What is smf17?

SMF17 Money Laundering Reporting Officer (MLRO) – acting as the MLRO for the London branch including receipt assessment, and onward disclosure of SARs. Legislations and regulations – keep up to date with any changes to UK Compliance regulations and laws, issued via the FCA and the PRA.

How many individual conduct rules are there?

There are two tiers of the Conduct Rules. The first tier – consisting of five rules – applies to everyone. The second tier – consisting of four rules – applies only to Senior Managers. The only exception here is that Senior Manager rule 4 also applies to all non-executive and executive directors.

What is SMCR compliance?

The Senior Managers and Certification Regime (SMCR) is a relatively new compliance regulation on British banks designed to increase the accountability of senior financial services executives for malfeasance. It was put in place largely as a result of certain financial mishaps.

What are the SMF functions?

SUP 10C. 4 Specification of functionsTypeSMFDescription of FCA controlled functionFCA required functionsSMF 17Money laundering reporting functionSMF 18Other overall responsibility functionSMF22Other local responsibility functionSMF 23bConduct risk oversight (Lloyd’s) function19 more rows

Who does the SMCR apply to?

The SMCR has been in force for banks, building societies, credit unions and PRA-designated investment firms (Relevant Authorised Persons) since March 2016 and was extended to cover all Financial Conduct Authority (FCA) solo-regulated financial services firms on 9 December 2019. It has replaced the APER entirely.

Can prescribed responsibilities be shared?

Prescribed Responsibilities should normally be held by one person, however, in limited circumstances, they can be held by more than one individual, if the firm can show that this is appropriate and justifiable: As part of a job share.

What are the three types of SMCR firm?

The FCA has acknowledged that there are a range of different types of firm which will become subject to the SMCR, and it would not be appropriate to treat all firms in the same way. As a result, the FCA has effectively divided firms into three types: Limited Scope, Core and Enhanced.

Do senior managers need to be certified?

The first part of the legislation, the Senior Managers Regime, states that those at the top level must be FCA or PRA approved, before taking up a position and certified at least once a year. A company then assigns each senior manager a ‘statement of responsibilities’ leaving them in no doubt about their obligations.

Which rules govern the conduct of senior managers?

Individual Conduct Rules:Rule 1: ‘You must act with integrity’Rule 2: ‘You must act with due care, skill and diligence’Rule 3: ‘You must be open and cooperative with the FCA, the PRA and other regulators’Rule 4: ‘You must pay due regard to the interests of customers and treat them fairly’More items…