SMCR for deposit takers and PRA-designated investment firms
The SMCR has applied to UK deposit takers, PRA-designated investment firms and UK branches of foreign banks since 7 March 2016.
The basic elements are:
- a Senior Managers Regime for individuals who are subject to regulatory approval;
- a Certification Regime which will require relevant firms to assess the fitness and propriety of certain employees carrying out a "significant harm" function; and
- a set of Conduct Rules which apply to the above individuals as well as virtually every employee at the bank.
Firms already subject to the SMCR will need to keep track of the proposals for extending the SMCR to all FSMA-authorised firms and take note of certain changes to the regime as it applies to them.
Key publications
| Consultation papers and discussion papers | Policy statements |
| June 2019 PRA (CP12/19): Strengthening individual accountability: Resolution assessments and reporting amendments |
September 2019 PRA (PS20/19): Strengthening individual accountability: Resolution assessments and reporting amendments. |
| January 2019 FCA (CP19/4): Optimising the SMCR and feedback to DP16/4 – Overall responsibility and the legal function |
July 2019
FCA policy statement (PS19/20) on optimising the SMCR – feedback to CP19/4 and final rules |
| October 2018 FCA (GC18/4): Proposed guidance on statements of responsibilities and responsibilities maps for FCA firms |
March 2019 FCA (FG19/2): Guidance on statements of responsibilities and Responsibilities Maps for FCA firms |
| July 2018 FCA (CP18/19): Introducing the Directory |
March 2019 FCA (PS19/7): The Directory |
|
December 2017 FCA CP17/40: Individual accountability: transitioning FCA firms and individuals to the SMCR.
Includes proposal for a fine for late reporting of Conduct Rule breach notifications which would apply to firms already subject to the SMCR |
July 2018 FCA PS18/14: Extending the SMCR to FCA firms – feedback to CP17/25 and CP17/40, and near-final rules, with accompanying Guide for FCA solo-regulated firms |
| November 2017 FCA CP17/37: Consultation paper on industry codes of conduct and discussion paper on extending the application of Principle 5 to unregulated markets and activities |
July 2018 |
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July 2017 FCA CP17/25: Individual accountability: extending the SMCR to all FCA firms.
Includes proposed changes that would impact firms already subject to the SMCR including a new prescribed responsibility and clarification of the scope of the significant management certification function |
July 2018 FCA PS18/14: Extending the SMCR to FCA firms – feedback to CP17/25 and CP17/40, and near-final rules, with accompanying Guide for FCA solo-regulated firms |
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September 2016 PRA CP34/16: Strengthening individual accountability in banking and insurance: amendments and optimisations |
May 2017 PRA PS12/17: Strengthening individual accountability in banking and insurance: amendments and optimisations, together with updated SS28/15 |
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September 2016 FCA CP16/26: Guidance on the duty of responsibility: amendments to the Decision Procedure and Penalties Manual (DEPP)
FCA CP16/27: Applying our conduct rules to all non-executive directors in the banking and insurance sectors |
May 2017 FCA PS17/9: Guidance on the duty of responsibility: final amendments (including feedback on CP16/26) to the Decision Procedure and Penalties Manual (DEPP)
FCA PS17/8: Applying our conduct rules to non-executive directors in the banking and insurance sectors |
|
September 2016 FCA DP16/4: Overall responsibility and the legal function |
January 2019 FCA CP19/4: Optimising the SMCR and feedback to DP16/4 – Overall responsibility and the legal function |
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January 2016 PRA CP1/16: Strengthening individual accountability in banking: amendments to notification rules and forms |
March 2016 PRA PS9/16: Strengthening individual accountability in banking: responses to CP1/16, and the Certification Part of CP29/15.
This policy statement contains the final rules on Conduct Rules breach reporting and related changes to forms |
| January 2016 FCA CP16/1: Consequential changes to the Senior Managers Regime (regarding Conduct Rule breaches). |
March 2016 FCA PS16/6: Consequential changes to the Senior Managers Regime.
This policy statement finalises the rules around conduct rule breach reporting under the SMCR and related changes to the FCA forms, and makes minor amendments to SYSC 1 Annex 1 to deal with how SYSC applies to foreign branches and UK firms.
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October 2015 FCA CP15/31 / PRA CP36/15: Strengthening accountability in banking and insurance: regulatory references |
February 2016 PRA PS5/16 / FCA PS16/5: Strengthening accountability in banking and insurance: implementation of SMCR and SIMR; and PRA requirements on regulatory references
FCA PS16/3: Strengthening accountability in banking: Feedback on CP15/22 (July 2015) and CP15/31 (October 2015); final rules on extending the certification regime to wholesale market activities and interim rules on referencing
September 2016 FCA PS16/22: Strengthening accountability in banking and insurance: regulatory references final rules |
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September 2015 FCA CP15/29 / PRA CP35/15: Amendments to various forms, including:
Appendix 1: Forms amended with immediate effect under powers of direction; and
Appendix 2: Draft Handbook text and PRA Rulebook text – proposed changes to forms made under rulemaking powers |
December 2015 |
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August 2015 PRA CP29/15: Occasional Consultation Paper. The paper contains amendments to the Certification Part |
March 2016
PRA PS9/16: Strengthening individual accountability in banking: responses to CP1/16, and the Certification Part of CP29/15. This policy statement contains the final rules on Conduct Rules breach reporting and related changes to forms |
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July 2015 FCA CP15/22: Strengthening accountability in banking: Final rules (including feedback on CP14/31 and CP15/5) and consultation on extending the Certification Regime to wholesale market activities |
February 2016 FCA PS16/3: Strengthening accountability in banking: Feedback on CP15/22 and CP15/31; final rules on extending the certification regime to wholesale market activities and interim rules on referencing |
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July 2015 HM Treasury publishes Bank of England Bill: technical consultation seeking views on reforms to the Bank of England, including extending the principle of personal responsibility to all sectors of the financial services industry |
October 2015
HM Treasury policy statement on SMCR: extension to all FSMA authorised persons |
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May 2015 PRA CP18/15: Corporate governance: Board responsibilities |
March 2016 PRA PS13/16: Corporate governance: Board responsibilities, together with SS5/16 |
| N/A |
March 2015 Government publishes a written statement to Parliament that it will extend the SMCR to UK branches of foreign banks and investment firms
FCA publishes statement: Strengthening Accountability in Banking |
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March 2015 FCA CP15/10 / PRA CP9/15: Strengthening accountability in banking: UK branches of foreign banks |
December 2015
FCA PS15/30: Strengthening accountability in banking: UK branches of foreign banks (final rules)
PRA PS29/15: Strengthening individual accountability in banking: UK branches of non-EEA banks, together with SS28/15 (which was later updated in May 2017)
August 2015
PRA PS20/15: Strengthening individual accountability in banking: UK branches of non-EEA banks
FCA FS15/3: Strengthening accountability in banking: UK branches of foreign banks – feedback on CP15/10 |
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March 2015 FCA CP15/9: Strengthening accountability in banking: a new regulatory framework for individuals - Feedback on FCA CP14/13 / PRA CP14/14 and consultation on additional guidance |
July 2015 FCA CP15/22: Strengthening accountability in banking: Final rules (including feedback on CP14/31 and CP15/5) and consultation on extending the Certification Regime to wholesale market activities
PRA PS16/15: Strengthening accountability in banking: responses to CP14/14, CP28/14 and CP7/15
February 2016 FCA PS16/3: Strengthening accountability in banking: Feedback on CP15/22 and CP15/31; final rules on extending the certification regime to wholesale market activities and interim rules on referencing |
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February 2015 FCA CP15/5 / PRA CP7/15: Approach to non-executive directors in banking and Solvency II firms and application of the presumption of responsibility to Senior Managers in banking firms |
July 2015 PRA PS16/15: Strengthening accountability in banking: responses to CP14/14, CP28/14 and CP7/15
See also FCA CP15/22 |
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February 2015 FCA CP15/4 / PRA CP6/15: Whistleblowing in deposit-takers, PRA-designated investment firms and insurers |
October 2015 FCA PS15/24: Whistleblowing in deposit-takers, PRA-designated investment firms and insurers
PRA PS24/15: Whistleblowing in deposit-takers, PRA-designated investment firms and insurers, together with SS39/15 |
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December 2014 FCA CP14/31 / PRA CP28/14: Strengthening accountability in banking: forms, consequential and transitional aspects |
July 2015 PRA PS16/15: Strengthening accountability in banking: responses to CP14/14, CP28/14 and CP7/15
See also FCA CP15/22 |
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November 2014 HM Treasury publishes consultation on extension of SMCR to UK branches of foreign banks and investment firms |
March 2015
HM Treasury publishes consultation outcome: Regulating individual conduct in banking: UK branches of foreign banks and response to consultation |
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July 2014 FCA CP14/13 / PRA CP14/14 Strengthening accountability in banking: a new regulatory framework for individuals |
December 2015 FCA PS15/29: Strengthening accountability in banking: Final amendments (including feedback on CP14/13) to the Decision Procedure and Penalties Manual and the Enforcement Guide
July 2015 PRA PS16/15: Strengthening accountability in banking: responses to CP14/14, CP28/14 and CP7/15. (This policy statement provides feedback on those aspects of CP14/14 that were not dealt with in PS3/15)
March 2015 PRA PS3/15: Strengthening individual accountability in banking and insurance – responses to CP14/14 and CP26/14 |
