Understanding the Certification Regime

There are now less than two weeks to go until the arrival of the Senior Managers and Certification Regime (SM&CR) on the 9th of December. In this article, we will look at the requirements of the Certification Regime, which is one of the three main areas that make up SM&CR:

  1. The Senior Managers Regime
  2. The Certification Regime
  3. The Conduct Rules

Click here to read our overview of the Senior Managers Regime.

So, who does the Certification Regime apply to?

The Certification Regime applies to employees who, whilst not being classed as ‘Senior Managers’, still have a significant impact for a firm and its customers.

Approval from the FCA is not required for employees who fall within the Certification Regime, but annual certification is required to ensure that the employee is suitable (and remains suitable) for the role.

What are the Certification Functions?

Certification Functions are set out in the FCA’s Handbook.

In some smaller firms, there may be no one in the Certification Regime. Similarly, it would not apply to sole traders with no employees.

When will Certification Functions apply to Senior Managers?

Where a Senior Manager also carries out a role that is significantly different to their role as a Senior Manager, they will also have to be certified. In these circumstances, a firm could carry out a combined fitness and propriety assessment for both the Senior Management Function and the Certification Function.

Fitness and Propriety

Fitness and propriety assessments will consider an individual’s honesty, integrity and reputation; competence and capability; and financial soundness.

If you need any help with SM&CR or feel you’re not prepared for the new regime, please contact helpdesk@rwagroup.co.uk to find out more about our SM&CR Helpline service.

About the author

Lisa joined RWA in 2014 as an e-Learning Assistant, designing training material for the Aviva Development Zone e-learning platform.

Her role as Head of Content and Communications involves the editorship of RWA Insight. It also includes reviewing e-learning content as well as providing proofreading, copywriting and standards support across the business.

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