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Preparing for SM&CR: Starting tips

18th March 2019

Tips for Preparing for the Senior Managers & Certification Regime

The FCA’s Senior Managers & Certification Regime (SM&CR) will extend and apply to all solo-regulated firms from 9th December 2019. This extension will affect all kinds of firms, big and small - from those with a number of regulatory permissions to those with limited regulatory permissions - from asset and wealth managers to sole traders and limited permission consumer credit firms.

And with the implementation of SM&CR will come fresh administrative, regulatory and conduct requirements for those firms that other large financial institutions and banks have been subject to since the initial implementation of SMCR in 2016.

In essence, the SM&CR regulation aims to reduce harm to consumers whilst strengthening market integrity by making individuals more accountable for their conduct and encouraging a culture of personal responsibility within firms.

Whilst much of the regime is simply ensuring that good practices are in place within the business, (much of which firms should already be doing), however, implementing and making sure that firms can document and evidence their ongoing compliance with the regime will no doubt prove to be a strain on both time and resources, and one that many firms will look to obtain additional support to assist with such a wide scale project.

Preparing for compliance with SM&CR will involve a large amount of new documentation and existing systems and processes will need to be reviewed and updated. With this in mind, firms must ensure that they plan their SM&CR preparations carefully to ensure they have enough resources to be fully compliant by the deadline. It is no small task, as SM&CR compliance simply cannot be achieved overnight!

To assist with SM&CR Preparations, you may like to read the following sections:

• SM&CR for Solo-Regulated Firms: Types of Firm
• Starting SM&CR Preparations: What you need to know
• Finalised Guidance: SM&CR Responsiblities - Statements and Mapping

Next Steps:

Ensuring you have comprehensive and coherent documentation in place is vital to ensure your firm is ready and compliant with SM&CR requirements. If you are preparing for the extension of the SM&CR regime for your firm and need any support or assistance, our experienced consultants would be happy to offer their assistance and practical support. Just drop our friendly team a line.

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