We are consulting on the extension of the Senior Managers and Certification Regime to all FSMA authorised firms.
We believe that holding individuals to account is a key component of effective regulation. The Senior Managers and Certification Regime (SM&CR) currently applies to deposit takers and, following the Bank of England and Financial Services Act 2016, is now being extended to FCA solo-regulated firms.
It replaces the current Approved Persons Regime, changing how individuals working in financial services are regulated. The aim of the new SM&CR is to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence.
As part of this, the SM&CR aims to:
This consultation paper sets out our proposed approach to the extension of the SM&CR as well as some minor proposals relating to the existing banking regime.
The proposals in this consultation relate to all firms regulated by us. As well as the firms themselves, the proposals will affect everyone performing financial services roles at those institutions. The proposals in this consultation do not extend to approved persons and individuals at Appointed Representatives of affected firms. Consumers may be interested how individual accountability is being enhanced within financial services.
Please send us your comments by 3 November 2017:
You can also:
We will consider your feedback and aim to publish a summary of responses and a policy statement in 2018.