FCA working with HM Treasury to finalise rules on SM&CR extension

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FCA working with HM Treasury to finalise rules on SM&CR extension

16th July 2019 compliance innovations investment management News payments systems strategy 0

The Financial Conduct Authority is working with HM Treasury to publish its final rules on the extension to the Senior Managers and Certification Regime (SM&CR).

SM&CR was initially introduced by the FCA in 2016, with a goal of lowering harm to consumers and boosting market integrity. The regulation encourages a culture of all levels of staff taking personal responsibility for their actions and for firms to be able to pinpoint where accountability lies.

An extension for SM&CR is set to be made to include FCA solo-regulated firms including claims management companies (CMCs) from 9 December 2019.

Due to importance in consulting sector-specific considerations, the FCA has agreed with HM Treasury for a later commencement date for benchmark administrators. This gives the FCA time to carry out a dedicated consultation for benchmark administrators before making final rules for the sector.

CMCs will also not come under the regulation until they have been authorised by the FCA – this does not affect the timing of commencement for other firms.

A commencement order will be made by HM Treasury and a policy statement setting out the final rules with be produced by the FCA.

In a recent interview with RegTech Analyst Redland co-founder Carl Redfern, said that financial institutions initially underestimated SM&CR but are beginning to realise its profound impact and the level of change it requires.

The RegTech startup offers accountability and compliance solutions for SM&CR. Its platform is a people-centric application which fits seamlessly in with an organisation’s existing infrastructure.

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