A particular aspect of the UK regulatory environment is that financial institutions can be classified in a number of different ways. For example, it’s possible for a firm to be classified as an FCA-regulated firm, an investment firm, a portfolio manager, a small CASS firm and an ‘IFPRU’ firm – amongst others!

The Senior Managers and Compliance Regime has three main elements that lie at the heart of the regime and its regulations. Having come about as a result of the 2008 Financial Crisis, and perceived failings at financial institutions SMCR is all about personal accountability and responsibility. Consequently, the have introduced five Conduct Rules required for SMCR compliance.

HR Managers should now be fully aware of the Senior Managers & Certification Regime (“SMCR”) that has replaced the Approved Persons regime for most financial sector firms regulated by the FCA/PRA. This regulation will make a significant impact on the UK financial services industry and indeed any organisation now offering finance under FCA regulation.

The FCA has warned CEOs that how a firm handles non-financial misconduct is indicative of a firm’s culture. It is the FCA’s view that embedding healthy cultures includes, therefore, taking steps to address the discrimination, harassment and bullying that remains “prevalent” in firms.

The introduction of the Senior Managers & Certification Regime (SMCR) is intended to increase transparency and accountability within the UK financial services sector. But, during the transition to this model, financial advisers and advice firms could have to deal with a greater administrative burden.

The SMCR will have big repercussions for the industry. Have you made the necessary preparations ahead of the December deadline?

Most advisers are aware of the Senior Management and Certification Regime that comes into force in December 2019 and almost two thirds (62 per cent) of advisers are well on the way to being compliant, according to a survey of 325 users of Intelliflo’s software in March 2019.

TMA has warned that advisers looking to ensure that their firm is compliant with the upcoming Senior Managers & Certification Regime (SMCR) need to complete any final preparations now.

As the industry’s attention remains on the Halloween Brexit deadline, there’s another frightening date which has been flying under the radar.

Britain’s finance industry watchdog wants financial services firms to think for themselves when applying new accountability rules for staff rather than adopt a “tick box” mentality for the new SMCR regime.

The second wave of the Senior Managers and Certification Regime (SMCR) will be active from December 9, 2019. With less than three months to go, this article provides some background, guidance and practical tips for all firms that will fall under the regime.

In January 2019, in CP 19/4 the FCA consulted on changes to optimise SMCR. Policy Statement 19/20 summarises the feedback the FCA received on the Consultation Paper and sets out the final rules. These rules are relevant to all SMCR firms.

The number of top brass of financial companies being investigated by the UK’s watchdog has more than doubled in two years, with nearly half of those being scrutinised for failings in culture and governance.

Two thirds of IFAs plan to seek outside help and guidance ahead of December’s deadline.

How to Deal With the Growth in Accountability and Responsibility Regulations

As part of the Senior Managers & Certification Regime (SMCR), the FCA consulted on introducing the Directory – a new public register and user interface that would: