Time to act now for success
Today the Financial Conduct Authority (FCA) published its highly-anticipated near final rules on the Senior Managers & Certification Regime (SMCR) for solo-regulated firms (PS18/14). As envisaged, no material revisions have been made to the proposals the FCA consulted on last year. In order to deliver the cultural, organisational and operational changes required by the implementation date of 10 December 2018 for insurers and 9 December 2019 for asset and wealth management firms should already be formulating their SMCR strategy and building their change programmes.
The aim of SMCR is to strengthen market integrity and prevent consumer harm by focusing on robust governance, increasing senior manager accountability and setting better conduct standards for staff at all levels. The regime has been live for banks and deposit takers since March 2016, and in July 2017 the FCA and Prudential Regulatory Authority consulted on extending it to all Financial Services Markets Authority (FSMA) regulated firms.