Who Does The Senior Managers Regime Apply To?

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…

When was the senior managers regime introduced?

7 March 2016The 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.

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.

What is FCA senior managers regime?

The regime defines a set of SMFs which each include inherent responsibilities. The Prudential Regulation Authority (PRA) and FCA also define a set of Prescribed Responsibilities and allow for a set of Overall Responsibilities which must be allocated as appropriate to a Senior Manager performing a SMF.

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.

Does SMCR apply to appointed representatives?

What if I’m an Appointed Representative? The SMCR does not currently apply to ARs, however the FCA could consult in the future on how the SMCR may be extended to ARs. An AR seeking individual authorisation will need to consider the SMCR in making an FCA application for standalone authorisation.

What are the senior management functions?

1 A senior management function is defined in FSMA as: “… in relation to the carrying on of a regulated activity by an authorised person, if (a) the function will require the person performing it to be responsible for managing one or more aspects of the authorised person’s affairs, so far as relating to the activity, …

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.