Telephone 020 3813 2890 for a free no obligation chat about your regulatory requirements with one of our compliance consultants.

© Compound Growth Limited 2012 - 2019 | Terms of Use  Privacy Policy

Registered in England and Wales as limited company number 07626537 - Registered Office 120 Pall Mall, London, SW1Y 5EA

We use cookies, if you consent to this use, please continue to browse our site.

Here to help with Regulation and Compliance

Compound Growth

CP19/31: Extension of SMR to Benchmark Administrators

Extension of the Senior Managers Regime to Benchmark Administrators

2nd December 2019

Following the role out of the Senior Managers & Certification Regime Initially to Banks, then Insurers and, as of next week, all Solo-regulated Firms, the FCA is now looking to extend the Senior Managers part of the new regime to Benchmark Administrators.

In a consultation Paper published on Friday (CP19/31), the FCA proposes that all benchmark administrators are automatically classified as ‘Core’ firms under the regime which means that they will have to apply up to four Senior Management Functions (SMFs) and allocate two Prescribed Responsibilities to the relevant Senior Managers.

Benchmark Administrators will be able to utilise the FCA’s existing waiver process to apply for ‘Limited Scope’ categorisation is appropriate, but the Conduct Rules will apply to almost both categories of Benchmark Administrators.

However, it seems the FCA will look to tailor the Conduct Rules for certain commodity benchmark administrators.

It should be noted that it is only the Senior Managers Regime that is being proposed for Benchmark Administrators, rather than the Certification Regime as well with the suggested implementation date being 7th December 2020.

Anyone wishing to provide comment or feedback on the proposed extension should ensure that their comments are returned to the FCA before the consultation closing date on 28th February 2020.

The extension of the SMR to Benchmark Administrators as of next December means that at that time, the Approved Persons Regime (APER) would no longer apply to any firm under the FSMA, and would only continue apply to Apppointed Representatives.

Read our latest articles, news and views affecting compliance and regulation in the UK Financial Services Industry.