Senior Managers & Certification Regime

The Senior Managers and Certification Regime (SM&CR) replaces the current Approved Persons Regime, changing how people working in financial services are regulated.

There will be three core changes which will affect firms of all sizes, from one-man bands to large brokerages. According to the FCA, the extension of SM&CR will be proportionate to the size of the firm and Ingard will be providing guidance in the coming months on how these new rules will apply to your business.

Conduct Rules: A set of minimum standards of individual behaviour in financial services will apply to a broad range of staff to improve individual accountability and awareness of conduct issues across firms.

Senior Managers Regime: Every Senior Manager within a firm will need to be approved by the FCA before starting their roles and will need to have a ‘statement of responsibilities’ that clearly says what they are responsible and accountable for.

Certification Regime: People who could potentially cause significant harm to the firm or its customers will need to be checked by the firm at least once per year to ensure they are fit and proper to perform their role.