06 August 2016

What is Senior Managers and Certification Regime and what does it mean for you?

On July 30, 2014 the UK’s Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) published their proposals for how to implement a new governance regime to strengthen accountability within banking. Changes include:

  • Senior Managers Regime (SMR) for the most senior individuals in affected firms
  • Certification Regime (CR) that affects a wider population of risk takers (Certified Persons) who could cause harm to the firm or its customers
  • Conduct Rules which apply to all non-ancillary staff within a firm, although initially this only applies to individuals affected by SMR and CR

Senior Managers and Certification Regime is being phased in through March 2017 and requires firms to allocate responsibilities to Senior Managers and vet Certified Persons’ fitness and propriety on a regular basis.

To find out more about Senior Managers and Certification Regime, please contact us for more details.