Author Archives: Informer

SMCR: is your HR function prepared for good results

SMCR is one of the strictest accountability codes of any industry with executives vulnerable to penalties, including jail, for failings beneath their oversight.

Brand-new FCA suggestions on operational and security risk management by Payment Services Providers (PSPs)

During March 2018, the FCA released its consultation paper (CP18/6) on its proposed approach to the application of the European Banking Authority’s (EBAs) final guidelines on security strategies for operational and security risks of payments services under PSD2.

SMCR: Your Action Points

This post summarises the steps which core and limited scope and enhanced firms are likely to have to take in order to adhere to the regime. To promote internal discussion and planning around these changes, we summarise a few of the steps which will be required relative to SMCR. Although only senior managers have to […]

Updated FCA proposals on operational and security risk management by Payment Services Providers (PSPs)

During March 2018, the FCA released its consultation paper (CP18/6) on its proposed approach to the application of the European Banking Authority’s (EBAs) final guidelines on security strategies for operational and security risks of payments services under PSD2.

SMCR: is your HR service prepared for good results

The Senior Managers & Certification Regime (SMCR) and Conduct Rules mark a new era for the UK’s beleaguered financial services industry. The new regime is one of the strictest individual accountability guidelines across all industries, leaving executives vulnerable to penalties, including jail, for failings beneath their oversight.
This is not only a “Compliance” thing, it is most certainly an area in which not only the board, executive committee and individual directors must definitely appreciate what they are liable for, but other teams in the business likewise. The HR function must play a principal role in dealing with the processes that underpin long-term compliance.

SMCR: Limited Scope Firms

For limited scope firms, for which a very limited SMCR regime applies, the FCA has proposed an amendment to clarify that it expects all directors to be subject to Senior Manager Conduct Rule 4 (the requirement to disclose appropriately any information of which the FCA or PRA would reasonably expect notice). The existing rules applied […]

SMCR: Systems and Controls Function CF28

The FCA has clarified that various systems and controls functions involving approval beneath the Approved Persons Regime (i.e. as the CF28 function) will be dealt with by certification functions under the SMCR. The FCA has implied that this is only likely to affect Core and Limited Scope organisations (e.g. for limited scope and core firms […]

SMCR: Intermediary revenue criteria for the enhanced tier

Amongst the rules for being an enhanced entity is where a company is a retail intermediary company with earnings of greater than ₤ 35m on a three year rolling average basis. The detailed rules define this by reference to how companies adhered to RMA-B reports to the FCA, but the FCA has detected that some […]

SMCR: Client dealing function CF30

  The FCA has suggested changes to the client dealing function of the certification regime to render it very clear that the function is not aimed to apply to employees engaging with clients in a solely administrative role. The proposed changes result from industry feedback that there was uncertainty whether or not such individuals could […]

SMCR: Head of Legal Position – January 2019

The FCA has confirmed that it will not require the registration, as an SMF18 or SMF22, of any person with overall responsibility for the Legal function. This is still conditional further consultation in CP19-04. Firms will need professional help in implementing this complex system.