FCA issues final rules on extension of SM&CR

Regulatory Updates | 26/07/19

The Financial Conduct Authority (FCA) has published final rules on the extension of the Senior Managers and Certification Regime (SM&CR) to FCA solo-regulated firms, including claims management companies (CMC). The SM&CR was introduced for banking firms in 2016 and insurers in December 2018. It will apply to solo-regulated firms from 9 December 2019. This Policy Statement summarises the feedback received to CP19/4 published in January 2019, the FCA’s response to the feedback and sets out the final rules, which are relevant to all SM&CR firms, including CMCs. It also makes the FCA’s near-final rules on the extension of the SM&CR to FCA solo-regulated firms and CMCs and the rules on a new Directory final. These changes will affect all firms authorised and regulated under the Financial Services and Markets Act (FSMA), as well as European Economic Area (EEA) and third country branches. The requirements for solo-regulated firms depend on whether firms are classified as Limited Scope, Core or Enhanced. Banking firms and insurers can start submitting data on Directory persons using the FCA’s online system Connect or the multi-entry facility from around September 2019. All other firms can start submitting data as of 9 December 2019, following commencement of the SM&CR for solo-regulated firms.