The last year has seen a number of changes in the way that certain financial services businesses such as banks and insurance companies are regulated in the UK, including the introduction of the Senior Manager and Certification Regime, the Senior Insurance Managers Regime, and the requirement for such firms to appoint a whistleblowers’ champion. From 7 March 2017, a number of new elements will come into force.

  • The FCA Conduct rules, setting out the core standards expected of staff working in relevant financial services firms, already apply to Senior Manager and Certification Regime staff but will now be applied to all other staff at relevant financial services firms (such as banks and insurance companies) which are covered by Senior Manager and Certification Regime (save for ancillary staff carrying out roles that are not specific to the business of financial services, such as cleaners and receptionists).
  • The Certification Regime comes into full effect. Firms must issue certificates confirming that they have assessed employees who carry out significant harm functions, as being fit and proper to perform those functions.
  • Regulatory Reference rules come into force, meaning that relevant regulated firms will need to seek regulatory references for candidates being recruited into Senior Management Functions, FCA controlled functions, Certification Functions, Senior Insurance Management Functions and other Key Function Holders for insurers, and notified non-executive directors (NEDs). References must cover the last six years of employment from all former employers at which the individual performed a relevant function, irrespective of the firm type or their regulated status. Review our earlier note for more information.

For further information click here to see our Reg. ready series.