On December 17, 2015, an amending Order was published which stops certain provisions of the Senior Manager & Certification Regime from coming into effect on March 7, 2016, the date from which the SM&CR becomes effective for banks, building societies, credit unions and investment firms designated by the PRA. The provisions that will not come into effect on March 7, 2016 are: (i) the obligation on firms to notify the PRA or FCA when it knows or suspects that a senior manager or certified person has failed to comply with the conduct rules; and (ii) the presumption of responsibility for senior managers. Certain changes to the regime have been proposed by the UK Government, including extending the regime to all financial services firms and replacing the presumption of responsibility with a duty of responsibility. It remains to be seen whether Parliament will approve those changes. In the meantime, the PRA advises firms to prepare for implementation of the regime on the basis that the above two provisions will not come into effect in March 2016.
The Order is available at: http://www.legislation.gov.uk/uksi/2015/2055/pdfs/uksi_20152055_en.pdf and the PRA’s related statement is available at: http://www.bankofengland.co.uk/PRA/Pages/supervision/strengtheningacc/default.aspx.