PS18/15: Extending the Senior Managers & Certification Regime to insurers – Feedback to CP17/26 and CP17/41 and near-final rules

Open consultation: CP17/26
Consultation closed
Consultation: CP17/41
Consultation closed
Policy Statement

We have published near-final rules on the extension of the Senior Managers and Certification Regime to all FSMA authorised firms.

Show PS18/15 (PDF)

Our rules are near-final, as these are subject to commencement regulations to be made by HM Treasury. We do not expect to make any significant changes to the near-final rules.

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 insurers.

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:

  • encourage a culture of staff at all levels taking personal responsibility for their actions
  • make sure firms and staff clearly understand and can demonstrate where responsibility lies

This Policy Statement sets out our near-final rules for the extension of the SM&CR.

Who this applies to

This Policy Statement is relevant to insurers and to staff working at insurers. Our rules 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. 

Next steps

Firms should start preparing for commencement on 10 December 2018. Firms should read the Guide to the Senior Managers and Certification Regime for dual-regulated insurers. The guide is a summary of our rules and guidance on the SM&CR. It gives an overview of how the SM&CR works and how we will move firms and individuals to the new regime.