Service

Senior Managers & Certification Regime (SMCR)

Instituted in 2016 as a replacement for the Approved Persons Regime (APER), the remit of the Senior Managers & Certification Regime (SMCR) has now been extended beyond traditional banks to insurers and most recently solo-regulated firms.

skyscraper

Senior Managers & Certification Regime (SMCR)

The essence of senior managers & certification regime (SMCR) is identical to that of APER: ensuring that companies adhere to the conduct of business rules (COBs) and that individuals demonstrate the requisite fitness and propriety – including at the recruitment stage.

However there is a significant difference with SMCR and that is the annual certification process, which requires regulated firms to certify once a year that employees who are in roles where, in the FCA’s words,  ‘it’s possible for them to cause significant harm to the firm, its customers or the market more generally’ are fit and proper to perform their role.

These employee roles are known as ‘certification functions’ and firms are not only responsible for identifying employees who should be certified annually but also checking and certifying that they are fit and proper.  Part of that process will involve obtaining regulatory references and criminal record checks (and ensuring that firm has the internal systems and controls functions to ensure that is carried out properly).  An inevitable complicating factor to this process will be where a ‘certification function’ is the subject of internal disciplinary procedures.

It is not an exaggeration to say that SMCR has been a sea change in financial services conduct regulation. The FCA remains the ultimate arbiter of fitness and propriety but the certification process has created a heavy burden for firms with the corresponding increased risk of failing to meet regulatory requirements.

Richardson Lissack is able to provide unique insight and expertise in advising on SMCR compliance. Our Head of Financial Services Regulation was an FCA enforcement lawyer who advised on individual fitness and propriety in relation to numerous authorisation applications. We can advise both on a bespoke basis, and as part of a firm’s regular employee recruitment programme.

Related

Publications

Buildings

FCA Moves to Streamline Removal of Unused Permissions

The Financial Conduct Authority (FCA) in the UK is proactively enforcing the perimeter by urging firms to review and, if necessary, remove unused re...

Building

Reasons for Trading Letter and FCA’s Preliminary Review: Untangling the Regulatory Threads

The Financial Conduct Authority (FCA) recently issued a “Reasons for Trading Letter” and launched a “Preliminary Review of Trading&#...

Building

Cryptoasset firms must comply with FCA financial promotions regime

As of 8th October 2023, all cryptoasset firms marketing to UK consumers must comply with the Financial Conduct Authority’s (FCA) financial promo...

Building

Bank account closures and CIFAS markers

Transcript of The Which? Money Podcast featuring Tim Thomas. Speaker 1 Welcome to the Which? Money podcast. Your weekly hits of money, news and person...

Building

Understanding Regulatory Investigations

Regulatory investigations can be a daunting experience for businesses and individuals alike. The consequences of non-compliance can be severe, with fi...

tall building

S173 Compelled FSMA Interview: What You Need to Know

In the United Kingdom, the Financial Services and Markets Act 2000 (FSMA) regulates financial markets and services. As part of its enforcement powers,...

Credit Suisse

The takeover of Credit Suisse

The takeover of Credit Suisse by UBS has more than a flavour of the Lloyds Bank Group ‘shot-gun wedding’ with HBOS in 2009: one financial services...

2 buildings looking up at them

A guide to insider dealing

Insider dealing is a serious charge, one that comes with considerable consequences if an individual is found guilty. It’s a complex area of law whic...

2 buildings looking up at them

CIFAS Markers: Data subject access request (DSAR)

What is a Cifas marker? CIFAS stands for ‘Credit Industry Fraud Avoidance System‘, a not-for-profit fraud prevention membership organisation. It o...

2 buildings looking up at them

What you need to know about CIFAS markers

National Fraud Database CIFAS fraud markers are adverse judgements through which one institution, be it a bank, loan company or an insurer, for exampl...

2 buildings looking up at them

Tim Thomas quoted in Bloomberg in relation to the PCP v Barclays case

Following the release of the judgment in PCP and Barclays, one of our directors, Tim Thomas, spoke to Bloomberg about the potential repercussions for ...

2 buildings looking up at them

Financial Crimes Enforcement Network (FinCEN) leak: UHNWI’s – the wrong target?

The FinCEN leak will surprise no experienced lawyers advising UHNWIs (Ultra-High Net Worth Individuals) and their professional advisers.  The irony o...

2 buildings looking up at them

The FCA and cannabis: an unlikely pairing?

The recent announcement by the Financial Conduct Authority (FCA) of guidance for companies in the medicinal cannabis sector, thinking about listing on...

Furloughed Individual

Furlough fraud: what lies ahead?

Furlough fraud claims are on the rise.  Her Majesty’s Revenue & Customs (HMRC) together with whistleblowing organisations are reporting thousan...

Prevention is better than a cure

How Richardson Lissack can help

Our lawyers are available to assist you and provide legal advice.

Contact London 020 3753 5352 or Manchester 0161 834 7284. Alternatively you can email info@richardsonlissack.co.uk

Areas of expertise

Our Financial Services Regulation services

Committed to exceeding expectations

Our team of experts

Tim Thomas
Director
Tim Thomas

“From the day we appointed Tim and his team, the communication with us was outstanding, always at the end of the phone or email, more than often outside office hours, with a fantastic level of knowledge.”

Viviana Silva
Paralegal
Viviana Silva

“Viviana is amazing she goes above and beyond in her support for the client. I want to give Viviana an extra thanks because she was always there making sure I felt ok, was always making an extra effort to help me with any difficulty I had and also like Kim she was always there after work hours to reassure me and calm me down if I was having a meltdown moment of worry or panic.”

View team
Let’s work together

Contact Us

arrow-downarrow-left-greyarrow-leftarrow-right-0c2535 arrow-right-ffffff arrow-right-greyarrow-rightbullet-icon-whitebullet-iconcloseicon-connecticon-cross-double icon-cross-right icon-email icon-nav-lefticon-nav-righticon-phoneicon-pinicon-reachlawyer-linkedin-icon nav-menu-arrow rl-logo-icon social_facebooksocial_googleplussocial_instagramsocial_linkedin_altsocial_linkedin_altsocial_pinterestlogo-twitter-glyph-32social_youtube