The UK Financial Conduct Authority (FCA) has published a document setting out its intention to self-apply the principles of the Senior Managers Regime (SMR) to strengthen transparency and “reinforce the standards,” noting that certain differences in the application of the principles are inevitable due to the FCA’s status as a regulatory authority and public body, rather than a regulated firm. However, the document also notes that the FCA will not be implementing the Certification Regime, which, when included with the application of the SMR, is included in the wider regulatory framework of the Senior Managers and Certification Regime (SMCR).
The FCA imposes direct accountability and conduct standards on senior individuals in regulated firms through the SMR. In force since March 2016, the SMR focuses on raising governance standards, increasing individual accountability and restoring consumer confidence in the financial services sector.
With regards to the application of the SMR to the FCA, the document comprises:
- Management Responsibilities Maps and the allocation of responsibilities between senior management;
- details of the individuals identified as coming within scope of senior management;
- governance and management arrangements; and
- Statements of Responsibility for senior managers.
The SMCR already applies to the banking sector, but will extend to include insurers—from December 10—and firms regulated by the FCA alone (solo-regulated firms). The start date for compliance by solo-regulated firms is still to be announced by HM Treasury.
The document is available here.