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Senior managers regime, coming to your firm and our conference

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MCN4 - Senior managers regime, coming to your firm and our conference

On the morning of the FCA revealing how it’s going to apply its senior managers regime (SMR) to all FCA regulated firms (yes that means you) we’d like to announce we’re adding a session on SMR to the agenda.

 

At the end of the day, it’s a piece of regulation that will be affecting the entire financial services industry, including mortgage lenders and brokers. We are proud of our conference, we think it’s the premier event in the industry, shaping the future of the market and ensuing you’re up to date with need-to-know elements of your roles.

 

And on that issue the FCA announced in October it would consult on introducing The Senior Managers and Certification Regime (SMCR) to the greater market, with it already applying to banks as of March 2016.

 

The new rules they hope to introduce for all firms falling under the FCA remit will ensure all FCA-regulated companies clearly define the areas of responsibility for which their senior managers are accountable. The FCA hopes to bring these changes in by the start of 2018 when these managers will get FCA approval and be named and listed on the FCA register.

 

The FCA has also announced five proposed conduct rules that all staff at firms will fall under.

They are:

  1. You must act with integrity
  2. You must act with due care, skill and diligence
  3. You must be open and cooperative with the FCA, the PRA and other regulators
  4. You must pay due regard to the interests of customers and treat them fairly
  5. You must observe proper standards of market conduct

With an additional four conduct rules for the senior managers within a firm:

  1. You must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively
  2. You must take reasonable steps to ensure that the business of the firm for which you are responsible complies with the relevant requirements and standards of the regulatory system
  3. You must take reasonable steps to ensure that any delegation of your responsibilities is to an appropriate person and that you oversee the discharge of the delegated responsibility effectively
  4. You must disclose appropriately any information of which the FCA or PRA would reasonably expect notice

 

Finally a significant piece of the proposed rules asserts that firms must “certify” each year that the staff operating under their senior managers are carrying out roles not covered by the SMR but that “significantly impact customers or firms” are fit and proper to carry out those roles. Providing the example of “if a firm employs a customer‑facing financial adviser, every manager above them in the same chain of responsibility will have to be certified (until the Senior Manager approved under the SMR is reached).”

 

The new rules WILL affect YOU, so make sure you get to know them. We think we’re offering the perfect opportunity.

 

 

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