CP19/4: Optimising the Senior Managers & Certification Regime and feedback to DP16/4 – Overall responsibility and the legal function

Open consultation: CP19/4
Consultation closes
Policy Statement
Q3 2019

In this Consultation Paper we propose to provide extra clarity in some areas of the Senior Managers & Certification Regime (SM&CR) and set out details of the feedback received to DP16/4.

Read CP19/4 (PDF)

We have introduced a new regime for firms and regulators to strengthen accountability in financial services. The Senior Managers & Certification Regime (SM&CR) was introduced for banking firms in 2016 and insurers in December 2018. It will apply to solo-regulated firms from December 2019.

We made near-final rules on the SM&CR in July 2018 and final rules for insurers in September 2018. When consulting on these rules we identified a few areas where we need to make changes. These proposals are set out in this Consultation Paper and are intended to provide extra clarity in some areas and help firms adjust to the SM&CR.

This paper also sets out proposals around how the SM&CR applies to the legal and client dealing certification function.

Who this applies to

This paper will primarily be of interest to banking firms, Solvency II and large non-directive (NDF) insurers, and Enhanced solo-regulated firms. It will also be of interest to incoming branches of overseas relevant firms as well as other groups – particularly legal professional bodies. It may also be of interest to other FSMA-authorised firms that the SM&CR will be extended to.

This paper may also be of interest to consumers interested in how the SM&CR operates within relevant firms to enhance individual accountability.

What you need to do

We want to hear your feedback on our proposals.

Please send us your comments by Tuesday 23 April 2019.

Online response form

You can also:

  • email your responses to [email protected] or
  • write to: Mohammed Moradi, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN

Next steps

We will consider your comments to the consultation and publish our feedback along with our rules.