Author Archives: Informer

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.

Has Regulation arrived for Crypto-Currency by the back door?

Lee Werrell Has Regulation arrived for Cryptocurrencies through the back door? Over the last couple of years, the crowdfunding market started to build rapidly. ICO or Initial Coin Offering is not only a very advantageous way of raising capital for additional project’s progression but also a remarkably profitable investment tool. But there are many troubles on this market, which need […]

FCA Senior Managers and Certification Regime

The Senior Managers and Certification Regime (SMCR) belongs to the UK regulators’ drive to enhance culture, administration and accountability within financial services firms. It tries to discourage misconduct by boosting individual accountability and attention of conduct issues throughout providers. Banks and PRA-designated investment providers have undergone the SMCR ever since March 2016. On 10 December […]

Underpinning better decision-making by utilising Effective Management information for conduct risk

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The philosophy of “conduct risk” has bubbled to the top of firms’ and regulators’ agendas in the last few years. In the UK, the FCA presumes conduct risk management to become implanted into firms’ risk management frameworks, maintained by suitable management information (MI). Developing on ongoing regulatory and supervisory expectancies and our years of experience […]

Underpinning better decision-making by Using Effective Management information for conduct risk

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The philosophy of “conduct risk” has risen to the top of firms’ and regulators’ agendas lately. In the UK, the FCA presumes conduct risk management as being lodged into firms’ risk management frameworks, sustained by relevant management information (MI). Building on latest regulatory and supervisory expectations and our expertise of what works well in practice […]