COVID-19 – FCA modification by consent to SMCR rules
Regulatory Updates | 06/05/20
The Financial Conduct Authority (FCA) has published a modification by consent to SUP 10C.3.13 and SYSC 24.1.2. The modification is intended to accommodate firms that are managing their governance arrangements in an uncertain time by providing them with a measure of flexibility and by reducing the administrative burdens. The modification to SUP 10C.3.13 extends the period in which an individual can cover for an absent Senior Manager without being approved from a maximum of 12 weeks in a consecutive 12 month period to a maximum of 36 weeks in a consecutive 12 month period. The modification to SYSC 24.1.2 allows firms to allocate an absent Senior Manager’s Prescribed Responsibilities to the individual covering the role. Firms can apply to use this modification if a Senior Manager is absent due to COVID-19, or if recruitment to replace a Senior Manager is delayed due to the coronavirus pandemic. The direction takes effect on the date a firm applies for it, and ends on 30 April 2021.