CP17/25: Individual accountability – extending the Senior Managers and Certification Regime to all FCA firms
We believe that holding individuals to account is a key component of effective regulation. The Senior Managers and Certification Regime (SM&CR) currently applies to deposit takers and, following the Bank of England and Financial Services Act 2016, is now being extended to FCA solo-regulated firms.
It replaces the current Approved Persons Regime, changing how individuals working in financial services are regulated. The aim of the new SM&CR is to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence.
As part of this, the SM&CR aims to:
- encourage a culture of staff at all levels taking personal responsibility for their actions
- make sure firms and staff clearly understand and can demonstrate where responsibility lies
This consultation paper sets out our proposed approach to the extension of the SM&CR as well as some minor proposals relating to the existing banking regime.
https://www.fca.org.uk/publication/consultation/cp17-25.pdf