Compliance
SM&CR – Six months on Brokers should be taking the right steps and be able to evidence them Dean Williams Compliance Officer NACFB
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t’s been a little over six months since the implementation of the FCA’s Senior Managers & Certification Regime (SM&CR) came into effect. By now, NACFB Member firms should have established their SM&CR frameworks for ongoing compliance. Last month, the Treasury agreed to delay, from 9th December 2020 until 31st March 2021, the deadline for solo-regulated firms to have undertaken the first assessment of the fitness and propriety of their Certified Persons. This should not however lead to complacency and where firms are able to meet the original deadline, they are encouraged to do so. The obligations are not too overbearing. We will step through those expectations for Members, focussing on those deemed a ‘core’ firm by the FCA. As a reminder, a core firm is a brokerage with full permissions (not limited) and with intermediary regulated business income of less than £35 million, calculated as a three-year rolling average. From the outset, the SM&CR was designed to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence. This places an onus on senior personnel to take reasonable steps to ensure compliance with regulatory standards and ensuring fair outcomes are always achieved for customers. 18 | NACFB
Having had time to implement SM&CR frameworks, firms should be able to ensure they are meeting the following requirements:
1. All senior managers should now have been identified and approved by the FCA. Any subsequent senior management appointments made following the 9th December 2019 should also have been notified to, and approved by, the FCA. Firms can check existing senior manager approvals remain up to date with the regulator by visiting the FCA Register (register.fca.org.uk). When there have been internal changes, these too should be confirmed with the regulator without undue delay. This can easily be done via the FCA’s Connect portal.
2. Each of your appointed senior managers must have a clear and concise Statement of Responsibilities (SoR), outlining their roles and responsibilities within your organisation. Do note, these documents should be self-contained and not refer to other documents.
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By now, NACFB Member firms should have established their SM&CR frameworks for ongoing compliance
