FCA Launches Senior Managers and Certification Regime Review

The Senior Managers and Certificate Regime (SM&CR) was introduced into the financial services industry as response to the failings experienced during the global financial crisis. The focus was on improving the culture of the financial services sector by holding individuals working in the sector accountable for their actions or inactions. The regime has been in place for UK general insurance intermediaries since December 2019, having been first rolled out in banking in 2016.

Whilst the UK government recognises that there is broad public support for the principles underpinning the regime, some firms have raised concerns over the compliance requirements and timescales for the authorisation of new Senior Managers and the differences in how the regime applies to different firms and how SM&CR interacts with other regulation.

Now, the FCA and the PRA have launched a review into the effectiveness, scope and proportionality of the Senior Managers and Certification Regime and have released a joint discussion paper (DP1/23) on the matter. HM Treasury has also launched a Call for Evidence to consider the legal and legislative elements of the regime.

The regulators, through the discussion paper, invites stakeholders to submit responses, to assist in identifying potential improvements to the SMCR regime.

Some of the key questions being asked include:

To what extent do you agree or disagree that the SMCR has made it easier to hold individuals to account?
To what extent do you agree or disagree that the SMCR regime has improved safety and soundness and conduct within firms?
To what extent do you agree or disagree that the fitness and propriety requirements support firms in appointing appropriately qualified individuals to senior manager roles?

The consultation is open until 1 June 2023. If you would like to submit your feedback, you can find out more here.

Users of the Development Zone can find a range of SMCR courses in their course catalogue Including:

For those not currently using the system, you can find out more and request a free 14-day trial here: https://mydevelopment.zone/#getStarted

Posted by Luke Forrest on 06 Apr 2023

SM&CR , FCA Compliance ,

About the author

Luke Forrest

Luke joined RWA from July 2022 - July 2023. He has 10 years of graphic design experience creating marketing material and 7 years of direct marketing experience, most recently working as a freelance social media marketing manager. Luke’s role at RWA involved overseeing RWA's social media channels and assisting with the creation of e-learning and blog content.