In this paper we set out a number of technical rule changes to the Senior Managers & Certification Regime (SM&CR). These changes reflect the removal of the requirement on firms, as set out under section 64B(5) of the Financial Services and Markets Act 2000 (FSMA), to report known and suspected breaches of our Rules of Conduct to the FCA.
The proposed rule changes are being made as a result of Her Majesty’s Treasury’s 15 October 2015 announcement of changes to the existing SM&CR legislation as it applies to the banking sector, which included the proposed repeal of section 64B(5) of FSMA.
We are keen to ensure that our forms and rules reflect the latest statutory position when the SM&CR enters into force for relevant persons on 7 March 2016. The Prudential Regulation Authority (PRA) is consulting simultaneously on changes to its rules and identical amendments to shared forms C and D as well as form L, which is a PRA-only form.
This Consultation Paper (CP) sets out how we intend to implement the consequential changes to rules and forms that will be required prior to commencement of the regime. It also examines the impact that we believe they will have upon the industry and on consumers.
Consultation paper 16/1 [PDF]
This consultation will be of interest to UK banks, building societies, credit unions and PRA‑designated investment firms (collectively referred to in this paper as ‘relevant firms’). It will also be of interest to incoming branches of overseas relevant firms. The proposed rule changes will affect a large number of individuals within these firms as the obligations under the SM&CR apply to all staff that are subject to the Rules of Conduct.
The consultation period for this paper ended on 5 February 2016.
We will consider your feedback and publish our rules in a Policy Statement in March 2016.
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