Widening the net? FCA consults on expanding the Senior Managers Regime

7 March 2016 marked the advent of a new regime for the regulation of banks, building societies, credit unions and PRA-designated investment firms. The regime encompasses the senior managers regime, certification regime and conduct rules. It imposes significant obligations on affected firms, including a requirement to certify that certain individuals within the business who pose a risk of “significant harm” to the firm or its customers are fit and proper for their roles (on both an initial and ongoing basis).

On 26 July 2017 the FCA announced that it was consulting on the extension of the regime to all FSMA authorised firms. Under the proposals almost every firm that offers financial services and is regulated by the FCA will be affected.

As it stands, the proposals envisage splitting those new firms affected into “core” and “enhanced” scope firms. The vast majority would fall within the former, with the latter aimed at larger firms, to which more strenuous requirements will be imposed.

One of the key changes will be the expansion of the scope of individuals affected within regulated firms, going well beyond the current FCA regulation of “approved persons” and applying to almost all employees of affected firms.

The rules themselves are likely to mirror those introduced in March 2016, and would mark a significant increase to the responsibilities of affected firms for the monitoring and regulation of its employees.

The consultation is open until 3 November 2017, and you can contribute to the consultation by feeding back via an online response form.

For further information please contact Colin Godfrey.

Increased bands for compensation for injury to feelings in discrimination claims

For any claims issued on or after 11 September 2017 there will be a:-

  • lower band (less serious cases): £800 to £8,400
  • middle band: £8,400 to £25,200
  • upper band (the most serious cases): £25,200 to £42,000
  • exceptional cases: over £42,000

This guidance will be reviewed, and if necessary amended, in March 2018 and annually thereafter.