What are the 3 main elements of the senior managers and certification regime?
There are three main elements to the regime: (1) the senior managers regime; (2) the certification regime; and (3) conduct rules that apply directly to a firm’s workforce.
What is FCA senior managers regime?
Introduction. The regime defines a set of SMFs which each include inherent responsibilities. The Prudential Regulation Authority (PRA) and FCA also define a set of Prescribed Responsibilities and allow for a set of Overall Responsibilities which must be allocated as appropriate to a Senior Manager performing a SMF.
What are the senior manager functions?
Senior management functions
- being an executive director of a regulated firm.
- being responsible for compliance with our rules.
- being responsible for overseeing the firm’s compliance against money laundering.
Who does senior managers regime apply to?
The regime applies to the most senior executive management and directors who are subject to regulatory approval.
Do senior managers need to be certified?
Senior Managers will need to be approved by the FCA to carry out their senior management function. Other staff currently requiring FCA approval will now be covered by the Certification Regime (see below).
What is an SMF manager?
(in relation to an SMCR firm) a person who has approval under section 59 of the Act (Approval for particular arrangements) to perform a designated senior management function in relation to the carrying on by that SMCR firm of a regulated activity.
Who does SM & CR apply to?
Consequently, the SM&CR will apply to the vast majority of financial services firms in the UK. These firms have been separated into three tiers: Core Firms, Enhanced Firms and Limited Scope Firms.
What does SM and Cr stand for?
Senior Managers and Certification Regime (SM&CR) Overview.
Do Senior Managers need to be certified?
What is an SMF 19?
The SMF19 is equivalent to a branch CEO and the person who effectively directs its business. If there are individuals performing the following PRA SMFs at, or in relation to, a third-country branch, they also have to be approved by the PRA with FCA consent: • Chief Finance (SMF2);
What does SM & CR replace?
September 2019. On 9 December 2019 the Senior Managers and Certification Regime (“the SM&CR”) was extended to include all Financial Conduct Authority (“FCA”) solo-regulated firms, replacing the UK Approved Persons Regime in its entirety.
What does SMCR mean for Senior Managers?
Senior Managers and Certification Regime
SMCR refers to the Senior Managers and Certification Regime (also known as SM&CR) As a HR professional working in financial services, you’ll have no doubt heard about it in some form, whether through dedicated training courses or reading up on the FCA website.
What is the senior managers regime?
Senior Managers Regime • Introduces new Senior Management Functions (SMFs) to replace existing Significant Influence Functions. • Introduces specific ‘prescribed responsibilities’which must be allocated amongst SMFs.
How should firms allocate the responsibilities of senior managers?
Firms must allocate prescribed responsibilities across their senior managers, setting out their duties. This forms part of the overall firm management and governance map.
Who does the new regime apply to?
The regime applies to the most senior executive management and directors who are subject to regulatory approval.
What are the new Senior Management Functions (SMFs)?
Introduces new ‘Senior Management Functions’ (SMFs) to replace existing Significant Influence Functions (SIF). Introduce specific ‘Prescribed Responsibilities’ which must be allocated to SMFs. SMFs to complete individual ‘Statements of Responsibilities’ and have a ‘Duty of Responsibility’ under FSMA.