On 4 July 2018, the FCA published a number of documents relating to the implementation of the Senior Managers and Certification Regime (SMCR), including a consultation paper (CP18/19) outlining its proposals to introduce a new public register, the Directory, containing the details of key individuals working in the financial services industry.
The proposed Directory will include the information on all individuals who hold Senior Manager positions requiring FCA approval as well as staff falling under the Certification Regime. The FCA had received industry feedback that the transition from the Approved Persons Regime to the Certification Regime would result in significant numbers of staff no longer appearing on the publicly searchable financial services register. The proposed Directory rectifies these concerns but ensures that information on Certified Persons will be publicly available. In a press release, the FCA said that the Directory “has been designed to provide user friendly, practical and easy to understand information” and will include “more information about individuals working in financial services than is currently available”.
The FCA also published its Policy Statements containing near final rules on extending the SMCR to FCA firms (PS18/14) and to insurers (PS18/15) conducted earlier this year. The HM Treasury has decided that the regime will commence on 9 December 2019 for FCA regulated firms and on 10 December 2018 for insurers.
In addition, FCA published the Final Guidance (PS18/16) on the Duty of Responsibility under SMCR for insurers and FCA solo-regulated firms. The FCA noted that the guidance it published should help firms “understand what steps they need to take to prepare for the SMCR’s implementation”.
Commenting on the publication, Jonathan Davidson, Executive Director of Supervision (Retail and Authorisations) at the FCA, said:
“The Senior Managers and Certification Regime sets clear standards for the conduct that consumers and regulators expect from all financial services staff. These standards of behaviour are central to the FCA’s priority of promoting healthy cultures in firms.”
How can we help you?
DLA Piper has a dedicated regulatory team with extensive experience acting for financial services and financial market participants and dealing with complex regulatory matters. We have experience in advising both companies and individuals on the scope of their responsibilities under the SMCR and dealings with regulators.
If you would like advice on your regulatory compliance or dealings with the FCA and / or PRA, please contact Michael McKee and Chris Whittaker.
and then 