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

PS19/20 Final Rules:Optimising the SM&CR

Final Rules: PS19/20 Optimising the SM&CR

29th July 2019

The FCA has now published a Policy Statement PS19/20 in relation to their Consultation CP19/4: Optimising the Senior Managers & Certification Regime (SM&CR).

Detailing the feedback and final rules, the FCA notes within PS19/20 that they have implemented the proposed changes to the existing rules as consulted upon.

The main changes to SM&CR as now detailed include:

• Confirming that the Head of the Legal function is not required in the SMR and providing clarification to respondents on this matter;
• Amending the intermediary revenue criterion for the Enhanced regime;
• Clarifying the requirements and scope of the Certification Regime and extending Senior Manager Conduct Rule 4 (SC4) to non-approved Executive Directors at Limited Scope Firms;

SM&CR: Client Dealing Function

Additionally the regulator has amended the scope of the Client Dealing Function as consulted, advising that the amended rule has been drafted in such a way that provides firms with the flexibility to exercise judgment over whether a role requires certification.

In this regards, the relevant factors that a Firm would need to consider in assessing an individual’s role are:

• Whether the role is simple or largely automated: and
• Whether the role involves exercising discretion or judgment.

To read the Policy Statement and final rules issued by the FCA, click here.

SM&CR will commence for all solo-regulated firms come 9th December 2019, this includes Claims Management Companies that are regulated by the FCA. However, still to be announced, will be the SM&CR commencement date for Benchmark Administrators. The FCA have informed they have requested and agreed with HM Treasury for a later SM&CR commencement date for benchmark administrators so that they may carry out a dedicated sector-specific consultation before making final rules for this sector and therefore this implementation date is still to be announced.

SM&CR Practical Support:

If you are preparing your firm for the extension of the SM&CR regime and need any advice or support, our experienced regulatory consultants would be happy to offer their assistance and practical support. Just drop our friendly team a line to discuss how we can help.

SM&CR Related Reading:

• SM&CR Update: Awaiting the Final Rules
• SMCR: Six months to go!
• SMCR Responsibilities: A Comprehensive View & Holisitic Approach
• Starting SM&CR Preparations: What you need to know
• Preparing for SM&CR: Starting Tips
• Finalised Guidance: SM&CR Responsibilities - Statements & Mapping

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