The UK Financial Conduct Authority (FCA) has published proposed rules to extend the senior manager and certification regime (SM&CR) to all firms authorised by the FCA. This new SM&CR would replace the current authorised persons regime.
The FCA considers that the extension will make individuals more accountable for their conduct and competence, thus strengthening market integrity.
The proposals include five conduct rules that will apply to all financial services staff at FCA authorised firms and which will enforce individual accountability for acting with integrity, due care, skill and diligence and will ensure that individuals are open and cooperative with regulators, treat customers fairly and observe proper standards of market conduct.
The responsibilities of senior managers will be clearly defined and such persons can be held personally to account. They will be approved by the FCA and appear on its register.
Under the Certification Regime, firms will certify individuals for their fitness, skill and propriety on an annual basis, if they are not covered by the Senior Managers Regime but their positions significantly impact customers or firms.
The FCA has requested comments on its proposed rules by 3 November 2017.