Modification by consent: SUP 10C.3.13 and SYSC 24.2.1

This modification by consent is available to solo regulated firms using temporary arrangements. Find out more about modification by consent SUP 10C.3.13 and SYSC 24.2.1.

Purpose of the modification

This modification is intended to accommodate firms that are managing their governance arrangements in a period of uncertainty. The modification aims to provide flexibility to firms at this time. 

It is also intended to reduce the administrative burden to firms, by removing the need for firms to submit Form A applications or Form Js and Statements of Responsibilities notifications, if the changes are temporary and directly related to the pandemic. 

This modification will end after 30 April 2021. We explain what this means in our updated statement on Senior Managers and Certification Regime (SM&CR) and coronavirus (Covid-19): our expectations of solo-regulated firms.

Details of the modification can be found in the Direction.

Availability of the modification

This modification by consent is available to solo regulated firms using temporary arrangements. Firms can use this if they think they may need to make or extend temporary arrangements to cover absences, as a result of the coronavirus (Covid-19) crisis. 

This modification by consent provides two modifications:

  • it extends the period in which an individual can cover for a Senior Manager without being approved (known as the ‘12-week rule’ and detailed in SUP 10C.3.13) from a maximum of 12 weeks in a consecutive 12-month period to a maximum of 36 weeks in a consecutive 12-month period
  • it allows firms to allocate an absent Senior Manager’s Prescribed Responsibilities to the individual covering the role (a modification to SYSC 24.2.1)

We explain how firms should document these arrangements in our public statement on our expectations of solo-regulated firms during the coronavirus (Covid-19) crisis.

View the list of firms that have applied for this modification (XLSX)

It does not identify if individuals have been ill with the coronavirus, as:

  • consequential issues, such as delays to recruitment, are included as reasons firms may need to use this waiver
  • firms can consent to this waiver as a cautionary measure, even if they do not utilise the modifications in practice

What this mean for firms

Firms can use this modification if, for example:

  • a Senior Manager is absent because of Covid-19
  • recruitment to replace a Senior Manager is delayed due to the coronavirus pandemic

How to use the modification

If you want to take advantage of this modification by consent, you should:

  1. submit an application into FCA’s Connect system 
  2. select 'Start an Application', then ‘WAIVERS MODIFICATIONS AND CRR PERMISSIONS’ then ‘Modification by Consent’ and lastly 'SUP10C.3.13 & SYSC 24.2.1' 

Your application will then show as ‘Submitted’, however, you will not receive an acknowledgement.

Page updates

18/01/2021: Link changed fixed two broken links