Senior Managers & Certification Regime – List of Regulatory Terms

smcr sm&cr senior managers and certification regime terms

List of Regulatory Terms for the FCA Senior Managers & Certification Regime (SM&CR/SMCR)

Term

Description

Ancillary Staff Employees who are not covered by the Conduct Rules, such as cleaners, receptionists, catering staff and security staff.
Certification Function A function performed by employees who could pose a risk of significant harm to the firm or its customers. The Certification Functions are defined in our Handbook but we do not approve people for these functions.
Certification Regime The part of the regime that covers Certification Functions.
Criminal Records
Checks
A requirement on firms to conduct criminal records checks for Senior Managers and Non-Executive Directors (where a fitness requirement applies) as part of checking that they are fit and proper.
Duty of Responsibility Every Senior Manager will have a Duty of Responsibility as a result of FSMA. This means that if a firm breaches one of our requirements, the Senior Manager responsible for that area could be held accountable if they did not take reasonable steps to prevent or stop the breach.
Employee ‘Employee’ is defined in FSMA 63E as a person who:

a.     personally provides, or is under an obligation personally to provide, services to A under an arrangement made between A and the person providing the services or another person, and

b.     is subject to (or to the right of) supervision, direction or control by A as to the manner in which those services are provided.

Fit and Proper Requirements Firms must make sure all Senior Managers and people performing Certification Functions (ie people under the Certification Regime) are fit and proper to perform their role. This must be done on appointment and at least once a year.
Handover Procedures A firm must take all reasonable steps to make sure a new Senior Manager has all the information and materials they need to do their job.
Individual Conduct Rules These are basic standards of behaviour that apply to all individuals performing financial services activities in firms. Firms need to train their staff on the Conduct Rules and how they apply to them. Firms will need to report breaches of Conduct Rules resulting in disciplinary action to us every year, and within 7 days if the person is a Senior Manager.
Other Overall Responsibility Function An SMF that applies where a senior executive is the most senior person responsible for an area of the firm’s business but they don’t perform any other SMF.
Overall Responsibility A requirement for every area, activity and management function of the firm to have a Senior Manager with overall responsibility for it.
Prescribed Responsibilities (PRs) FCA-defined responsibilities that must be allocated to an appropriate Senior Manager.
Regulatory References Information that firms need to share with each other when an employee or director moves from one firm to another (for candidates of Senior Managers Functions, Non-Executive Directors and Certification Functions).
Responsibilities Maps A document setting out a firm’s governance and management arrangements, and how responsibilities are allocated to individuals within the firm.
Senior Management Functions (SMFs) The roles where the people doing them need to be approved by the FCA. These are defined in our Handbook.
Senior Manager Conduct Rules (SMR) These are additional Conduct Rules that apply to all Senior Managers. Firms need to train Senior Managers so they understand what the Conduct Rules are and how they apply to them.

Firms will need to report breaches of all Individual and Senior Manager Conduct Rules by Senior Managers resulting in disciplinary action to us within 7 days.

Senior Managers The people who perform a SMF. These people need FCA approval to do their jobs.

 

Senior Managers Regime The part of the regime for Senior Managers. This includes SMF, SoRs, Duty of Responsibility, Fit and Proper, PRs, Regulatory References and criminal records checks.

For Enhanced Firms, it also includes Responsibilities Maps, Handover Procedures and Overall Responsibility.

 

Statement of Responsibilities (SoRs) A document that every Senior Manager needs to have that sets out what they are responsible and accountable for. This needs to be submitted to us when a Senior Manager is being approved and when there is a significant change, and be kept up to date.

 

If you need assistance with preparing for the SM&CR – Go To A Firm That Has The Experience

Call us on 0207 097 1434 Today!

Making Compliance Work!


[amazon_link asins=’1492217476,B077GGK1F8,B07CZJZ2JW,1118906136,1118024303′ template=’ProductCarousel’ store=’digieboodown-21′ marketplace=’UK’ link_id=’c75c8159-ac66-11e8-b488-a90451c69d69′]

You May Also Be Interested In

Making Compliance Work: The SM & CR For Solo Regulated Firms

Making Compliance Work: Impending Actions List For Senior Managers Regime 2018