The challenge of the SM&CR

The Senior Managers and Certification Regime (“SM&CR”) is a complex piece of regulation that applies to regulated firms uniquely, depending on many factors, including legal form; regulated activities; governance arrangements; apportionment of responsibilities; reporting lines; international spread; and much more. This idiosyncratic application of the Regime makes it difficult for firms to gauge whether they are interpreting and applying the rules correctly.

To exacerbate this challenge, the FCA’s rules for SM&CR are not housed in a single rulebook, which leaves firms unsure whether they are aware of all aspects of the regulation and, indeed, whether appropriate controls have been put in place.

The SM&CR has three facets:

  • Senior Manager’s Regime - replaces the current Significant Harm Functions
  • Certification Regime - a new licencing regime applying to employees who are not Senior Managers but who’s actions could cause significant harm to the firm or its clients.
  • Conduct Rules - a new set of Code of Conduct rules which will replace the current Statement of Principles and Code of Practice for Approved Persons and will apply to all employees except ancillary staff.

What is the solution? An SM&CR Project Planner

We have developed a simple yet comprehensive SM&CR Project Planner for FCA Core firms that brings all of the SM&CR regulation together in one place, enabling you to work through the regulation in layman’s terms and in a logical manner. 

Following a consistent methodology, the project planner provides your firm with:

  • The FCA Rules and References
  • Guidance on which internal documentation could be impacted by the SM&CR
  • Steps for decision or action
  • Insightful guidance in interpreting and applying the rules
  • Records of the decisions made, and the steps taken to implement the SM&CR
  • Progress management through your project
How will this SM&CR Project Planner help your Firm?

Includes the rules and our guidance to enable your Firm to understand your classification and to enable you to be aware of the trigger points at which that classification could change.

Understand which SMFs will apply to your business, both now and in the future.

Guidance through the prescribed responsibilities and whether they apply to your Firm, including allocation of the agreed prescribed responsibilities.

Draft statements of responsibility, and clearly understand the requirements driving these vital documents. The planner also explains the protocols surrounding changes to Statements of Responsibilities and notification events.

Understand the SM&CR’s regulatory impact and burden, which is vital for appreciating the regulatory risk to your Firm and your employees. 

Understand the protocol and timing in obtaining criminal record checks.

Understand the requirements in obtaining and providing detailed regulatory references. 

Define which employees need to be internally certified, including the reasons why they would be internally certified, and guidance for ongoing certification.

Understand and define who the conduct staff are within your business, and the requirements on your Firm to ensure conduct staff understand their obligations.

Understand the requirements to assess the fitness and propriety of your employees, including the timing and frequency of such checks, and the level of scrutiny that such checks should reach.

Understand which individuals should be put forward to be entered to the Directory. As the directory is an ongoing requirement, the SM&CR Project Plan will guide you on the processes required to maintain the integrity of the Directory.

What is the cost of control?

We have done the hard work so that you don't have to. For a one-off fee of £999, you will have an SM&CR Project Plan that will relieve some of the burden of the SM&CR.

Contact us now to find out more

We have a dedicated team of experienced compliance consultants who can provide expert assurance and peace of mind. Get in touch to see how we can help your Firm.