Senior Managers and Certification Regime: Finalising FCA rules

We have been working closely with HM Treasury on preparation of the Commencement Order needed to enable the FCA to publish final rules on the extension of the Senior Managers and Certification Regime (SM&CR).

The aim of the SM&CR is to reduce harm to consumers and strengthen market integrity by creating a system that enables firms and regulators to hold individuals to account.

The SM&CR is due to be extended to FCA solo-regulated firms including claims management companies (CMCs) from 9 December 2019.

Given the importance of consulting on sector-specific considerations, we have requested and agreed with HM Treasury a later commencement date for benchmark administrators. This will allow us to carry out a dedicated consultation for benchmark administrators before making final rules for the sector. As set out in our near-final rules, CMCs will also not come into scope until they have been authorised by the FCA. This does not affect the timing of commencement for any other firm.

The Commencement Order will be made by HM Treasury. We will then publish a Policy Statement setting out our final rules. 

The rules that are due to be finalised

In July 2018, we published near-final rules in PS18/14 on extending the Senior Managers & Certification Regime to FCA firms. We consulted on further changes in CP19/4 to optimise the SM&CR ahead of commencement.

In March 2019, we published near-final rules to extend the SM&CR to CMCs in PS19/9 and near-final rules to introduce the Directory of financial services workers in PS19/7.

Following publication of the Commencement Order, our Policy Statement will finalise our rules.

When the SM&CR will commence for benchmark administrators

Given the importance of consulting on sector-specific considerations, we have requested and agreed with HM Treasury a later commencement date for benchmark administrators which will be announced separately.