August 2019: FCA publishes 2 web-pages on Extension of the UK SM&CR

As we reported on here, the final rules on the extension of the UK Senior Managers and Certification Regime (SM&CR) to Financial Conduct Authority (FCA) solo-regulated firms have now been published. This will take effect from 9 December 2019, with the exception of benchmark firms who will be subject to the SM&CR from 7 December 2020.

Following this, the FCA has published 2 new webpages providing guidance and information on the extension:

  • Senior Managers and Certification Regime: solo-regulated firms - this webpage provides guidance on SM&CR, and links to various guides and checklists on how SM&CR works, how firms can categorise themselves under this regime and what firms need to do to implement this. It also outlines the 3 key parts of the SM&CR (the Conduct Rules, Senior Managers Regime and Certification Regime) and summarises the key dates that FCA forms will be available and the deadline for submitting these.
  • More information on SM&CR categorisation for solo-regulated firms - this webpage then highlights how firms can review, and change (by "opting up" or "opting down"), their SM&CR category. Here the FCA details 6 thresholds which will result in a firm being classified as Enhanced. Of these thresholds, 4 are based on GABRIEL returns (information submitted via the FCA's GABRIEL reporting system). If firms believe they have been categorised incorrectly, they should contact the FCA.

Tapestry comment

These webpages will be a useful resource for firms preparing themselves before 9 December, particularly the approximate 47,000 firms who may be impacted for the first time or those firms who wish to review their categorisation.

As this extension is now only 4 months away, firms should be reviewing these additional resources and the implementation process carefully to ensure they fully comply with this extended framework. This extension demonstrates an increased focus on conduct by the FCA, and so any firms that do not fully comply may be subject to scrutiny.

If you have any questions about this update or in relation to your remuneration regulation compliance generally, please do contact us.

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