Reed Smith Client Alerts

The SMCR will apply to asset managers from 9 December 2019. Asset managers will be well advised to start their implementation project now. The list of action points will include: deciding whether they are subject to the core, enhanced or limited scope regime; securing early engagement from senior management and certified persons both in the UK and overseas; drafting and agreeing a statement of responsibilities with each senior manager; establishing processes to ensure that each SMF is able to demonstrate that they took ‘reasonable steps’ in discharging their obligations in case they are challenged by the FCA; deciding if an SMF will be grandfathered across to the new regime or whether an application has to be made to the FCA; setting a system for certifying relevant individuals on an annual basis. Asset managers will need to update their governance policies, procedures and arrangements. Employment contracts and terms of appointment will need to be reviewed and updated. Staff need to be trained on the new requirements to ensure that they understand the scope of their responsibilities and potential regulatory liability.

Autores: Karen Butler Panos Katsambas Winston Penhall Douglas E. Cherry Tim Dolan David Calligan

Introduction

The Senior Managers and Certification Regime (SMCR) will apply to all authorised firms, including FCA authorised asset managers (Asset Managers) from 9 December 2019 (subject to certain transitional provisions). The specific requirements that will apply will depend on how the Asset Manager is categorised, i.e., whether as limited scope, core or enhanced. 

Most Asset Managers will be core firms. Enhanced firms will be those seen as involving greater risk (if they have over £50 billion assets under management or qualify as CASS large firms). Limited scope firms include those authorised alternative investment funds which are internally managed.