NEW RELEASE: Senior Managers and Certification regime (SM&CR) eLearning Course
Tue, 01 Oct 2019 12:47
Following the banking crisis in 2008, the UK Parliament appointed the Parliamentary Commission for Banking Standards (PCBS) to advise on how standards could be improved in the financial services and banking sector. The PCBS recommended that firms needed to take more responsibility, with employees acting with integrity, and there be better standards of conduct at all levels, including senior management.
By 2016, the Parliament passed legislation requiring all FCA regulated firms to be covered by the Senior Managers & Certification Regime (SM&CR).
The aim of the SM&CR, which has replaced the Approved Persons Regime, is changing how staff working in financial services are regulated and promoting a proactive culture of responsibility and accountability within firms. Conduct rules under SM&CR apply to all staff, non-executive directors (NEDs) and senior managers.
The SM&CR applies to four main groups of people as follows:
- Conduct rules and Fitness and Propriety apply to anyone working within financial services;
- The Certification regime applies to Certified staff and NEDs;
- Senior managers regime applies to senior managers only.
Essentially, under the SM&CR rules, the FCA can take enforcement action against any individual carrying out financial services activities at a firm. The conduct rules apply even after an individual has left their role, making Senior Managers and Certified Staff personally accountable for how they discharge their responsibilities.
The FCA also requires firms to notify the FCA of any disciplinary action taken for a Conduct Rules breach. To mitigate the risks, firms need to make sure that staff are regularly trained to ensure they are aware of their obligations and potential fines as a result of a breach.
Our new eLearning course on SM&CR will enable learners to understand the conduct rules under each regime and how they apply to various individuals within the firms. Learners will also be tested on their understanding to decrease the risks of breaching rules under SM&CR. Find out more about our new course HERE.
The Senior Managers and Certification Regime(SM&CR) eLearning course joins our suite of FCA Compliance courses.