The UK Financial Conduct Authority (FCA) has published its long-awaited consultation paper on extending the senior managers and certification regime (SMCRE) to all authorised firms. A separate consultation paper has been published for insurers.
The SMCRE will consist of a “core regime”, an “enhanced regime” and a “limited scope regime” to reflect the size, scale and complexity of the firms that will be subject to this regime. The consultation is open until 3 November 2017 and the final rules are expected to be published next year1.
The core regime
The Senior managers regime
The SMCRE will require FSMA-authorised firms (Firms) to allocate specific senior management roles and prescribed responsibilities (SMFs) to senior managers.
The consultation paper identifies a number of core SMFs that will apply to all Firms unless a specific exemption applies. The core SMFs include: (a) chief executive; (b) executive director; (c) partner; (d) non-executive chair; (e) chief compliance officer; and (f) MLRO. This will mean that some non-executive directors (NEDs) that are currently registered with the FCA as approved persons will no longer need to be registered.