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

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

Optimising SM&CR CP19/4

21 January 2019

CP19/4: Optimising the Senior Managers & Certification Regime and feedback to DP16/4 re: Legal Functions

The FCA have today published a Consultation Paper on the Senior Managers & Certification Regime, CP19/4. In addition, within the consultation paper, the FCA provides feedback to their earlier discussion paper (DP16/4) that relates to the overall responsibility of the legal function with reference to SM&CR.

As firms will know, the Senior Managers & Certification Regime (SM&CR) was introduced for banking firms in 2016 and has now been rolled out to insurers in December 2018. SM&CR will become application to all regulated firms from December this year (2019).

Focus of Consultation CP19/4:

Following on from the near-final rules for SM&CR made in July 2018 and those rules issued for insurers in September 2018, the publication of CP19/4 sees the regulator proposing to provide additional clarity on some areas of SM&CR may require it, as well as setting out proposals upon how SM&CR applies to the legal and client dealing functions within firms.

Amongst others, the regulator is proposing changes to the dealing function, as well as looking to include the systems and controls function within the Certfication Regime.

• Proposals to Dealing Function

The FCA proposes to amend the scope of the Client Dealing Function in the Certification Regime to allow firms to exclude purely administrative roles that involve ‘taking part in’ investment activities.

• Proposal to Include the Systems & Controls Function in the Certification Regime

The FCA proposes to ensure that the Certification Regime applies to individuals performing roles that were Systems and Controls functions under the Approved Persons Regime, but which are no longer approved under the SM&CR

• Proposal to Clarify the application of the SM&CR to the Legal Function

Following September 2016’s FCA’s Discussion Paper DP16/4 – ‘Overall responsibility and the legal function’, the regulator is proposing to exclude the Legal Function from the Overall Responsibility Requirement.

Next Steps:

Comments on the Consultation should be received by Tuesday 23 April 2019, after which the FCA will consider all comments to the consultation before publishing their feedback and final rules.

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