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Linklaters

Senior Managers and Certification Regime

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Senior Managers and Certification Regime

The SMCR is part of the UK regulators’ drive to improve culture, governance and accountability within financial services firms. It aims to deter misconduct by improving individual accountability and awareness of conduct issues across firms.

Follow the links to access the key FCA and PRA publications on SMCR.

SMCR for FCA-solo regulated firms

SMCR for insurance firms

SMCR for deposit takers and PRA-designated investment firms

 

SMCR Timeline

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March 2021

  • FSMA authorised firms to apply Conduct Rules to all non-ancillary staff from 31 March 2021 (Delayed from 9 December 2020 to give firms affected by Covid-19 time to make the changes they need.)
  • Solo-regulated firms are required to have undertaken the first assessment of the fitness and propriety of their Certified Persons (Delayed from 9 December 2020 to give firms affected by Covid-19 time to make the changes they need.)
  • Solo-regulated firms are required to submit data to the FCA for the FCA Directory by 31 March 2021 (Delayed from 9 December 2020 to give firms affected by Covid-19 time to make the changes they need.)

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December 2020

  • The Senior Managers Regime comes into force for benchmark administrators on 7 December 2020.

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July 2020

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December 2019

The SMCR applied to all FSMA-authorised firms from 9 December 2019.

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December 2018

The SMCR was extended to insurers on 10 December 2018, replacing the PRA’s Senior Insurance Managers Regime and the FCA’s Approved Persons Regime.

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March 2016

Banks and PRA-designated investment firms have been subject to the SMCR since 7 March 2016.

What we offer

We have an unparalleled depth and breadth of expertise in advising on the SMCR and related governance and risk management issues in both the advisory and contentious context. We were instructed by over 15 global banks and insurers in relation to the implementation of the SMCR and SIMR, are advising many firms on the proposed extension and continue to have regular dialogue with regulators and the industry in relation to the operation of the regulators’ individual accountability regimes.

Training on SMCR

We are offering fixed price training on what the SMCR means for board members and other Senior Managers. The training would be delivered by a partner and a senior associate with extensive experience on all aspects of SMCR.

We can also offer tailored/bespoke training to suit the particular needs and circumstances of different audiences. Our list of SMCR training options suggests possible training topics.

SMCR implementation

We are ready to help with any level of involvement on your preparations for becoming SMCR-compliant. Please contact us if you would like more information on how we can assist.

SMCR design and operating effectiveness testing

We have conducted assurance exercises for clients to stress test their governance arrangements against SMCR requirements. These exercises can focus on any aspect of SMCR that suits your needs. This may include, for example, reviewing and advising on the adequacy and appropriateness of current policies and procedures, training, management information, breach reporting and escalation arrangements, or individual Senior Manager’s reasonable steps frameworks. Please get in touch if you would like to discuss this further.
Training on SMCR
SMCR implementation
SMCR design and operating effectiveness testing

Linklaters Insights

1

Guide to the extension of the SMCR to all regulated firms

By the end of this year, all firms regulated by the FCA must apply new rules on individual accountability. Nearly every person who works in financial services will be subject to the new regime. This guide provides an overview of the rules and highlights what firms should be doing to prepare.

If you are a Linklaters client, log in or subscribe to our Client Knowledge Portal to access the full guide.
2

SMCR update: At last, clarity that Head of Legal is not a senior management function

The long-running debate over whether the legal function should be captured by the Senior Managers Regime was resolved in a recent FCA paper. This update picks out the headlines from the latest SMCR consultation.

If you are a Linklaters client, log in or subscribe to our Client Knowledge Portal to access the update.
3

Senior management accountability: A global perspective

This report on senior management accountability considers the steps being taken by national regulators across the globe to improve organisational culture and governance through enhancing the accountability of senior management.

If you are a Linklaters client, log in or subscribe to our Client Knowledge Portal to access the report.
4

Extension of the SMCR to insurers

SMCR has applied to insurance and reinsurance firms since 10 December 2018. Our client note summarises the key differences between the previous regime for insurers and the new rules under SMCR.

If you are a Linklaters client, log in or subscribe to our Client Knowledge Portal to access the full guide.
5

Operational aspects of the extended SMCR

In December 2017, the FCA proposed how firms would transition from the current Approved Persons Regime to the extended SMCR. This note summarises the operational aspects of moving individuals to the new regime.

If you are a Linklaters client, log in or subscribe to our Client Knowledge Portal to access the note.

6

How the FCA supervises unregulated activities

This note explores the FCA’s approach to recognising industry codes of conduct for unregulated activities.

If you are a Linklaters client, log in or subscribe to our Client Knowledge Portal to access the note.

Key Contacts

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