FCA Regulated firms and the new SMCR

From December 2019, new FCA rules come into play as the SMCR Senior Managers and Certification Regime is extended to all authorised firms.

The new rules follow the recommendation by the Parliamentary Commission on Banking Standards (PCBS) that the FCA develop a new accountability system to avoid a repeat of the 2007/8 financial crisis. Essentially it  replaces the approved persons regime and is therefore relevant to all dealers offering finance and puts more accountability on a wider range of people within organisations.

Most FCA registered dealers will be Core Firms for the purposes of the SMCR and as such will have to comply with the baseline requirements of the core regime which consist of three parts: Senior Managers Regime (SMR), Certificate Regime and the Conduct Rules.

In addition to considering the above – more to come in later updates – FCA registered dealers will need to review documentation including employment contracts to be sure that the necessary people are contractually bound to observe the new conduct rules.

December 2019 is a fair way ahead but this is something which FCA registered dealers will need to start thinking about to ensure compliance.

 

Authors: Nona Bowkis

Published: 06 Sep 2018

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