Since May 2016, the Duty of Responsibility has applied to Senior Managers of banking firms. It will also apply to Senior Managers of insurers and FCA solo-regulated firms when the Senior Managers and Certification Regime is extended.
Under the Duty of Responsibility, we can take enforcement action against Senior Managers if:
This paper sets out how we will apply the Duty of Responsibility to insurers and solo-regulated firms once the Senior Managers and Certification Regime is extended.
This Policy Statement is relevant to insurers, FCA solo-regulated firms and the senior management of both.
Consumers may be interested in how our approach sits within our initiative to improve culture and governance in firms.
Firms should start preparing for commencement of the SM&CR which shall begin on:
Firms should read the Policy Statement alongside the rules for how we will extend the Senior Managers and Certification Regime. We have also published Guides to the Senior Managers and Certification Regime for firms. These summarise of our final rules and guidance on the SM&CR, including the Duty of Responsibility.