The problem with most firms, whether they be IFAs, Stockbrokers, Payment Services or whatever sector, is that the Compliance Officer is treated unfairly, if they are running the compliance function as a component of their job. Whether they are advising, trading or operate the financial side of the business, unlike 10 or even 5 years […]
Compliance is an ambivalent function. On the one hand you are viewed as the regulators’ ally inside the investment firm; overseeing the implementation of their regulation. Meanwhile, you are paid by the investment company and a component of their culture and hierarchy. You might say ‘front office’ (traders making the money) considers compliance the way […]
SMCR and the inbuilt code of conduct rules are one of the strictest accountability codes of any industry with executives vulnerable to penalties including fines, jail and career implications.
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 […]
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.
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 […]
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 […]
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 […]
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 […]