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FCA Regulatory Assessment Audit

FCA Regulatory Assessment Audit

 

 

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Rogue FCA Authorisations or Genuine Requirement?

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FCA Short Deadline Letter for CMCs

The FCA have issued 2 week notice letters to CMCs insisting on them submitting the new Long Form As and SORS, well ahead of the November 24th Deadline. The appear to want to get the SMF’s in place well before the rest of the industry.

The SMFs that apply to CMCs are SMF 29 Limited Scope Function and SMF 16 Compliance Oversight Function.

If the Individual Form attached to the CMC application for that senior manager was submitted less than 9 months before, CMCs can use the Short Form A to apply for approval, unless there have been any changes since the Individual Form was submitted, in which case please complete the Long Form A. This is unlikely in the majority of cases.
Where required, you should ensure that an SM&CR Form A and SOR is completed and sent to the FCA, apparently to give sufficient time for them to consider the contents.
They have also thrown in a red-herring: “Please also let us know if you have determined that your firm does not need any SMFs“. The SM&CR Guide for Solo-Regulated Firms clearly states that they have to.
Authorised firms need to comply with SM&CR from 9 December 2019, or as soon as they are authorised if this is after 9 December 2019.  To do this firms should:
• prepare Statements of Responsibilities for Senior Managers
• train all Senior Managers and Certification staff on the Conduct Rules
• identify individuals that will perform a certification function
To ensure your firm is prepared to meet the requirements of the new regime, please visit www.fca.org.uk/smcr or refer to the SM&CR Guide for Solo-Regulated Firms. We did refer, and in no place could we find information requiring CMCs to submit these forms early and so soon after completing their full permissions application forms. Is this a rogue supervision/authorisations action???

For your CMC Compliance needs, call us on

0207 097 1434

SMCR MISCONCEPTIONS: The Certification Regime is easy to implement

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Assuming you have done all you need for the Senior Managers Regime on 9th December 2019. You have identified those impacted, and they are all ready, you’ve even got a project plan for ongoing compliance oversight and monitoring of the new regime.

It might feel like plain sailing from now, but with the furor of activity to implement the Senior Managers Regime as part of SM&CR before the implementation deadline, take care not to fall into the trap of missing the all-important Certification Regime.

“But Senior Managers are the ones executing the key roles requiring FCA approval, so there’s no more to get done.”
Not really. The Certified population could be considerably larger in most firms, so there is far more to work on. You are obligated to check and certify that they are fit and proper to perform their role and provide Conduct Rules training in advance of the implementation date of 9th December 2019. Additionally, embedding this cultural change, specifically with lots of people, could take much endeavour and time.
“Right, but we’ve got another 12 months after the implementation date for Senior Managers, so we’ll just take care of it then.”
Not exactly! While firms have 1 year from the start of the new regime to certify individuals that are performing a Certification Function, they must still identify them by the first day. You will also need to ensure you have collected all extra evidence that will allow you to assess an individual’s fitness and propriety prior to 9th December 2020. As all of us know, in the realm of regulation, a year is not a long time! Your solution is to start thinking about it now, alongside the Senior Managers Regime.
“This sounds very complex.”
It doesn’t have to be, although you do need to be mindful of the different facets of SM&CR implementation, in addition to training that will need to be tailored for every role.
“This is a big job, it’s really going to take a considerable amount of planning, resource and time!
It may do, so you’d be smart to consider this. But don’t worry, we could be there to help plan, communicate and support your implementation, including the training you may need to get the Certification Regime implemented correctly and on schedule.
Even when you’re already well underway, we can still help provide you with the assurance you need to become confident all bases are covered. Additionally, we have software modules that can maintain it all for you.

Call us today on 0207 097 1434 or email

smcr@complianceconsultant.org

SMCR: Latest From FCA 11 September 2019

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Checklists for solo-regulated firms implementing SM&CR

These checklists bring together information from the SM&CR Guide for solo-regulated firms (PDF) about what you need to do to implement SM&CR, depending on your firm’s categorisation. Before referring to these checklists, you should check which category your firm belongs in.

We have checklists for:


Enhanced firms

The following is a summary of the relevant checklists and the SM&CR Guide for solo-regulated firms. It is not intended to be exhaustive.

If your firm is in the Enhanced category, check:

  • That your firm and individual details are correct. If any changes need to be made, you will need to use the relevant form on Connect.
  • Whether you need to change any existing approvals, or add new ones, ahead of conversion.
  • Which of your current Approved Persons will no longer be approved (i.e. which Approved Persons Regime (APR) approvals will lapse).
  • Who will be a Senior Manager at your firm.
  • Which additional Senior Management Functions (SMFs) need to be allocated and to whom.
  • That each of your Senior Managers has a Statement of Responsibilities.
  • Whether the Prescribed Responsibilities applicable to your firm have been allocated to the relevant Senior Manager and included in their Statement of Responsibilities.
  • You have trained Senior Managers and certification staff in the Conduct Rules, ensuring that they understand how the rules apply to their roles.

Make sure that:

  • Every activity, business area and management function has been allocated to a Senior Manager under the Overall Responsibility requirement.
  • All Prescribed Responsibilities, including the additional ones for Enhanced firms have been assigned to an appropriate Senior Manager.
  • Appropriate Handover Procedures are in place.

Prepare and submit these documents to us, using Connect:

  • A Form K notifying us of which currently approved individuals should be converted to a mapped SMF.
  • A Responsibilities Map.
  • A Statement of Responsibilities for each of the firm’s Senior Managers.

Failure to submit these documents to us by the appropriate deadline will mean your firm is in breach of our rules and we may take action.

In relation to the Form K, please note the following:

  • You will be able to locate the Form K on Connect, under the Approved Persons tab.
  • Once you have selected the individuals who will hold SMFs within your Form K, the system will generate forms for Statements of Responsibilities for each individual, which you will need to complete.
  • There is a section in the Form K where you will be able to attach your Management Responsibilities Map. Enhanced firms are required to complete this section before being able to submit the form.
  • Controlled Functions will map in their current state on the Form K. For example, a Controlled Function which hasn’t been approved yet, will map to a Senior Management Function in an ‘applied for’ state.
  • If, after you’ve started drafting your Form K, you make any changes to your existing Controlled Functions (submitting a Form A, B, C, D, E etc), you will need to refresh the Form K you have in draft to ensure the information contained within the form is up to date. If Connect identifies that you have submitted a form which has changed your Approved Persons and you fail to refresh the Form K, an error message will appear on the Form K, prompting you to do so.
  • If, following submission of your Form K, you submit an APR Form A/E, you will need to re-submit your Form K. If you don’t re-submit your Form K, mapping this individual to the corresponding Senior Management Function, the applied for function will fall away at commencement of the new regime.
  • If you submit an SM&CR Form A, applying for an individual to hold a Senior Management Function, this won’t appear on your Form K as no conversion is required.

Form K must be submitted by 23.59 on 24 November 2019 and is available on Connect from 9 September 2019.

Senior Management Functions will appear on the FS Register on 9 December 2019. Therefore, on or shortly after 9 December 2019, you should check the FS Register to ensure you have the correct Senior Management Functions. If you have any questions, you should contact us.

If you have an Approved Persons Regime application in progress – that we haven’t processed before SM&CR begins – you will need to submit a Statement of Responsibilities for your application by 16 December 2019. You should do this by sending a paper Statement of Responsibilities to your Case Officer (this form will be available in due course).

The Certification Regime and Fitness and Propriety Checks

  • Make sure that you understand which of the Certification Functions apply to your firm.
  • Identify the individuals within your firm that need to be certified on an annual basis.
  • Ensure that the annual fitness and propriety checks for Certification staff and Senior Managers fit into your firm’s existing HR and other processes.

Regulatory References and Criminal Records Checks

  • Assess how the new Criminal Records Checks and Regulatory Reference Requirements fit into your firm’s existing recruitment processes.
  • Ensure that your firm has the appropriate processes to obtain Criminal Records Checks for new Senior Managers and confirm your firm is registered with the DBS, Disclosure Scotland or Access NI (as relevant).
  • Ensure that your firms has the appropriate processes to obtain and provide regulatory references (see pages 40-41 of SM&CR Guide for solo-regulated firms (PDF) for more information).

Conduct Rules

Make sure that you:

  • Can identify your firm’s ancillary staff (i.e. those to whom the Conduct Rules do not apply).
  • Understand the Conduct Rules training and reporting requirements for Senior Managers and all other staff.
  • Consider how staff will be made aware and trained so that they understand how the conduct rules apply to them in their roles.

Core firms

The following is a summary of the relevant checklists and the SM&CR Guide for solo-regulated firms (PDF), it is not intended to be exhaustive.

Identify:

  • Who will be a Senior Manager at your firm.
  • Whether you need to change any existing approvals, or add new ones, ahead of conversion
  • Whether you firm has a Chair. If so, determine whether they are Executive or Non-Executive. If they are a Non-Executive Chair of a governing body you will need to submit a Form K to convert that individual from CF2 (Non-Executive Director) to SMF9 (Chair) under the new regime. Executive Chairs will need to apply for the SMF9 function using Form A.

Make sure that:

  • You understand what you need to do, and which forms are required, to amend your approvals where appropriate.
  • You know which of your current Approved Persons will no longer be approved (i.e. which Approved Persons Regime approvals will lapse).
  • Each of your firm’s Senior Managers has a Statement of Responsibilities.
  • All the Prescribed Responsibilities applicable to your firm have been allocated to the relevant Senior Manager and clearly included in their Statement of Responsibilities.
  • You have trained Senior Managers and certification staff in the Conduct Rules, ensuring that they understand how the rules apply to their roles.

If you have an Approved Persons Regime application in progress – that we haven’t processed before SM&CR begins – you will need to submit a Statement of Responsibilities for your application by 16 December 2019. You should do this by sending a paper Statement of Responsibilities to your Case Officer (this form will be available in due course).

The Certification Regime and Fitness and Propriety Checks

  • Identify which of the Certification Functions apply to your firm.
  • Identify the individuals within your firm that need to be certified on an annual basis.
  • Ensure that the annual fitness and propriety checks for Certification staff and Senior Managers fit into your firm’s existing HR and other processes.

Regulatory References and Criminal Records Checks

  • Assess how the new Criminal Records Checks and Regulatory Reference Requirements fit into your firm’s existing recruitment processes.
  • Ensure that your firm has in place the appropriate processes to obtain Criminal Records Checks for new Senior Managers and confirm your firm is registered with the DBS, Disclosure Scotland or Access NI (as relevant).
  • Ensure that your firms has the appropriate processes to obtain and provide regulatory references (see page 40-41 of SM&CR Guide for solo-regulated firms (PDF) for more information).

Conduct Rules

Make sure that you:

  • Identify your firm’s ancillary staff (i.e. those to whom the Conduct Rules do not apply)
  • Understand the Conduct Rules training and reporting requirements for Senior Managers and all other staff.
  • Consider how staff will be made aware and trained so that they understand how the conduct rules apply in their roles.

Limited scope firms

The following is a summary of the relevant checklists and the SM&CR Guide for solo-regulated firms (PDF), it is not intended to be exhaustive.

  • Identify who will be a Senior Manager at your firm.
  • Ensure that each of your firm’s Senior Managers has a Statement of Responsibilities.
  • Train any Senior Managers and certification staff in the Conduct Rules, ensuring that they understand how the rules apply to their roles.

If you have an Approved Persons Regime application in progress – that we haven’t processed before SM&CR begins – you will need to submit a Statement of Responsibilities for your application by 16 December 2019. You should do this by sending a paper Statement of Responsibilities to your Case Officer (this form will be available in due course).

Conduct Rules

Make sure that you:

  • Can identify your firm’s ancillary staff (i.e. those to whom the Conduct Rules do not apply).
  • Understand the Conduct Rules training and reporting requirements for Senior Managers and all other staff.

The Certification Regime and Fitness and Propriety Checks

  • Identify whether any of the Certification Functions apply to your firm.
  • If so, identify the individuals within your firm that need to be certified on an annual basis.
  • Ensure that the annual fitness and propriety checks for Certification staff and Senior Managers fit into your firm’s existing HR and other processes.

Regulatory References and Criminal Records Checks

  • Assess how the new criminal records checks and regulatory reference requirements fit into your firm’s existing recruitment processes.
  • Ensure that your firm has the appropriate processes to obtain criminal records checks for new Senior Managers and confirm your firm is registered with the DBS, Disclosure Scotland or Access NI (as relevant).
  • Ensure that your firms has the appropriate processes to obtain and provide regulatory references (see page 40-41 of SM&CR Guide for solo-regulated firms (PDF) for more information)
Source: https://www.fca.org.uk/firms/senior-managers-certification-regime/solo-regulated-firms/checklists#core

21 SMCR Solo Regulated FAQ’s From Leading Consultancy

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The extension of the SMCR to FCA solo-regulated firms affects over 45,000 financial companies.

Do you know how the extension of the Senior Managers and Certification Regime (SMCR) to FCA Solo-Regulated firms impacts your firm?

Basically every employee at a firm regulated by the FCA will be affected by the regime. The SMCR is created to hold every one of financial sector employees to certain standards of conduct and to hold senior managers answerable for any misconduct that falls inside of their area of responsibility.
Answers to SMCR extension to solo-regulated firms questions:
When was the regime effective for solo-regulated firms?
The extension of the SMCR to solo-regulated firms began on 9 December 2019.
Do the same requirements involve all solo-regulated firms?
No, the requirements are being employed proportionally. The FCA is categorising firms depending on to their size and complexity. Depending on the firm categorisation the regime will apply differently.
There are 3 categories:
  • Limited scope: this categorisation will apply to firms who already have exemptions under the Approved Persons Regime. Firms within this category will be exempt from some baseline requirements and will generally have fewer senior management functions.
  • Core: firms in this particular tier will have to abide by the baseline requirements. The majority of solo-regulated firms will fall into this category.
  • Enhanced: this category will concern a small number of firms whose size, complexity and potential influence on consumers or markets warrant more focus. These firms will have extra requirements.
How is the firm’s categorisation established?
The FCA is providing each firm with it’s assessment of the firm’s categorisation, however, the assessment is indicative. Firms are in charge of assessing which tier they come under based upon the rules. If businesses disagree with the FCA’s assessment they must inform the FCA. The FCA has provided an online tool to assist firms in their categorisation at.
What are the biggest changes for firms?
The new certification regime, the extension of conduct rules to all staff with the exception of those in ancillary roles and for Senior Managers, and the new duty of responsibility.
To what activities do the Individual Conduct Rules and Senior Manager Conduct Rules apply?
The conduct rules relate to an individual’s activities in connection with the firm’s regulated and unregulated financial services activities (including any activities carried on in connection with a regulated activity).
Which staff will fall under the Certification Regime?
The Certification Regime will apply to people whose roles the FCA has established could cause harm to customers, the firm itself or the markets it operates in. The FCA has defined a series of “certification functions”. The regime will also apply to anybody who supervises or manages a Certified Function, that isn’t a Senior Manager. Typically CF30s will be among the new certificated persons.
Don’t forget that the FCA Directory for certificated persons will be up and running in March 2020 and solo regulated firms have until December to upload their details. All those CF30’s that will be removed from the FCA Register, will now appear in the Directory so that the public can ensure that the person they are dealing with has been assessed and approved by the firms they are working for.
Not all of the certification functions will apply to all firms and firms are only required to apply those that relate to them. It is possible that in very small firms there will be no one in the Certification Regime if there are only a handful of senior individuals (who will be Senior Managers) supported by administrative staff. Also if the firm is a sole trader with no employees, the Certification Regime won’t apply to them.
The Certification Regime only applies to employees of firms, it doesn’t apply to Non-Executive Directors.
In a partnership structure, will all partners need to be senior managers?
All partners must be senior managers, unless they are what the FCA rules uncharitably call “partners without influence”, i.e. they play no part in the management of the firm. In this case they are “unlikely” to be performing the partner function. The FCA’s view is that most partners will have some engagement in managing a firm, though it recognises that this will not apply in every partnership. Partnerships will have to think carefully about how their governance and management arrangements work in practice, and decide whether any of their partners definitely play no part in the firm’s management
How does the Certification Regime differ from the Approved Persons Regime?
Firms must determine every year whether anyone that is to conduct a certification function is fit and proper to perform their role and issue a certificate to them if they are. A few of the staff in the scope of the Certification Regime may previously have undergone FCA approval under the Approved Persons Regime. This will no longer be required under the Certification Regime. This reinforces that firms, rather than the regulator, are in charge of ensuring their staff are fit and proper.

Compliance Consultant

‘Making Compliance Work’

What is the Duty of Responsibility?
Every Senior Manager will have a Duty of Responsibility due to the Financial Services and Market Act (FSMA). This means that if a firm breaches one of the FCA’s requirements, the Senior Manager responsible for that area could be incriminated if they did not take reasonable steps to prevent or stop the breach.
The Duty of Responsibility specifies that the FCA can act against a Senior Manager where they can show that:
  1. There was misconduct by the Senior Manager’s firm
  2. At the time of the misconduct or during any part of it, the Senior Manager was in charge of the management of any of the firm’s activities in relation to which the misconduct occurred
  3. The Senior Manager did not take such steps as a person in their position could reasonably have been expected to take to avoid the misconduct occurring or continuing.
The burden of proof for all these elements rests on the FCA. The Senior Manager does not need to show that they took reasonable steps, it is for the FCA to prove that they did not.
What records do senior managers need to take to adhere to the duty of responsibility?
One of the most difficult practical issues for senior managers in banks is how to record that they are, on a day-to-day basis, taking reasonable steps to prevent regulatory breaches in their areas (the so-called “duty of responsibility”). Senior managers’ understandable concerns that the regulator may seek evidence of compliance years after the fact have led, in some cases, to a culture of excessive paperwork and unnecessary making and recording of challenges during the decision-making process.
In response to concerns about this raised during the consultation, the FCA states that the duty of responsibility does not impose additional obligations to keep records explaining or justifying steps taken (or not taken). It goes on to say, however, that it may be in senior managers’ interests to keep records of relevant steps they take. Furthermore, the FCA explains that senior managers (and significant influence function holders under the current regime) are obliged to take reasonable steps to ensure that their business area abides by the FCA’s rules, including the requirement to keep records allowing the FCA to monitor the firm’s compliance with its rulebook.
It is unlikely that firms or their senior managers will take comfort from the FCA’s statement on these points. They will have to strike a balance between the need to keep reasonable evidence of compliance and the need to run their business efficiently and effectively.
Will firms need to appoint someone to each Senior Management Function?
The SMCR provides a more granular list of Senior Management Functions (SMFs) than the current list of controlled functions. This has prompted some firms to ask whether they are required to have individuals fulfilling each function. The FCA has confirmed that they do not: the general principle is that if a person is to carry out a role that is designated as an SMF they must be approved as such, but otherwise there is no general requirement to appoint individuals to hold SMFs.
This means that those firms that are not currently required to have a Compliance Officer or Money Laundering Reporting Officer are not required to appoint them under the SMCR. Likewise, although there are designated SMFs for the chairs of the Risk, Audit, Remuneration and Nominations Committees, the SMCR does not itself require firms to establish such committees or appoint individuals as their chairs.
Can an individual be both a Senior Manager and a Certified Person?
Yes, if a senior manager performs a role within their firm that is subject to the certification regime, and that role is not related to their Senior Management Function, then they will also need to be certified.
What is a Statement of Responsibilities?
A Statement of Responsibilities (SoR) is a single document that every Senior Manager must have, which clearly sets out their role and responsibilities and what they are accountable for. Statements of Responsibilities must be submitted to the FCA when a Senior Manager is being approved and when there is a significant change. It must be kept up to date. In March 2019 the FCA published final guidance to assist solo-regulated firms when preparing their Statements of Responsibilities.
Do firms need to appoint someone to each Senior Management Function?
The SMFs applicable to each firm vary according to SMCR firm type. Seventeen SMFs apply to Enhanced firms, six apply to Core Firms and three SMFs apply to the Limited Scope tier. If a person is to undertake a role that is designated as an SMF for their firm type they must be approved as such, but otherwise there is no general requirement to appoint individuals to hold SMFs.
The FCA will automatically convert most firms Approved Persons Regime (APR) functions to the corresponding Senior Management Functions (SMFs), but some firms will need to complete a form to convert individuals manually.
Can a Senior Manager hold more than one SMF?
Yes, it is possible to hold more than one SMF. For example, an SMF3, Executive Director may also hold the SMF17, Money Laundering Reporting Officer function. The need for this will be determined by the governance structure of the firm. Where this is the case, the individual will need approval from the FCA for each function. The Senor Manager will only need one Statement of Responsibilities, but this must clearly describe all their responsibilities.
What is the 12-week rule?
The Senior Managers Regime allows someone to cover for a Senior Manager without being approved where the absence is temporary or reasonably unforeseen, where the appointment is for less than 12 consecutive weeks. (SUP 10C.3.13 R in the FCA Handbook provides more information).
The regime applies on a legal entity basis, what does this mean to firms?
The FSMA requires the SMCR to be applied at a legal entity level and not at group level. This means that firms with group structures will need to consider the impact of SMCR applicable to each legal entity.
For groups with several legal entities the SMCR could apply in varying way to each company. This means that there will be groups which will contain firms in different tiers of the new regime. Groups may choose to apply the highest tier of the regime to all entities in their group, as an example, to make all entities Enhanced firms. However, there is no expectation or requirement for firms to do this.
How should firms assess the fitness and propriety of different levels of staff?
The FCA notes that firms should apply the certification requirements proportionately to different functions, and do not need to adopt the same criteria for fitness and propriety regardless of a person’s seniority or role. It gives the example of a trainee retail investment adviser, who may be certified as fit and proper on the condition that they continue to meet basic standards and work under supervision.
Does the regulatory reference requirement contravene employment law or the GDPR?
One of the more onerous requirements of the SMCR is that firms are required to give a “regulatory reference”, i.e. a detailed reference in a standard template, in relation to a former employee or director who is applying for a senior management or certification function at another firm. Firms are also required to update these references if new information turns up. The reference must contain all information relevant to the assessment of an individual’s fitness and propriety (although the FCA says that this is an existing requirement).
In response to concerns around employment law and GDPR compliance, the FCA states that its rules only require firms to disclose information that has been properly verified, and there is therefore no conflict with duties under the general law to former employees or firms seeking references. The FCA also believes that the requirement does not contravene the GDPR, as the information employers are required to give is proportionate, storage of the information is for an appropriate amount of time, and it is appropriate to store it and provide it to a new employer, in order to comply with regulatory rules.
Are there any training requirements?
Yes, firms must make individuals who are subject to the Conduct Rules cognizant that this is the case, and take all reasonable steps to ensure that they comprehend how the rules concern them and their role. There are 2 tiers of Conduct Rules, individual conduct rules, which apply to the majority of individuals working in the financial services sector and Senior Manager conduct rules which apply only to Senior Managers.
Four Conduct Rules apply to senior managers and a further five individual conduct rules apply to all non-ancillary employees within a firm. Ancillary employees, in roles such as post room staff, receptionists, catering staff and cleaners are not required to comply with the Conduct Rules.
Senior Managers and Certification Staff will need to have been trained, and abide by the Conduct Rules from the start of the new regime at 9 December 2019. Firms will have 12 months to put in place processes to comply with the training and reporting requirements, and train their other staff on the Conduct Rules.
What is the new handover procedures requirement?
This requirement only relates to firms categorised as ‘Enhanced’. Such firms must take all reasonable steps to make sure that a person taking on a Senior Manager role has all the information and materials they could reasonably expect to have to do their job effectively. One way of carrying out this may be for the predecessor to prepare a suitable handover note. Enhanced firms are also required to have a policy which explains how it complies with this requirement, and maintain adequate records of the steps it has taken.
Are there any transition arrangements?
The FCA has confirmed transitional provisions to help firms move to the new regime have now ended.

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Can You Really Afford Generic Ongoing Compliance Support?

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 ago, there is far too much to get done, to gratify the demands of the regulators.

Obviously there are 5 main options;
  • You can proceed as normal and let things get slowly further and further behind; not a great option, running the gauntlet of “not” being visited.
  • You can devote more time to the compliance aspect, rejig the annual compliance monitoring plan and enlist other people to help; but you will need to supervise their efforts and if they are not “compliance” people, it may be even more work than you save.
  • Engage one of the many consultancies that are either big 5 or quasi big 5, made successful by all the mis-selling of yesteryear and not necessarily focused on your kind of business. These guys usually want a big chunk of profits to be “available” and deliver ongoing support.
  • You can recruit a compliance manager (or team) to perform the main bodies of work required, and have regular meetings to ensure they are staying up to date with everything. This is expensive with all the rights of workers and the fringe benefits.
  • The final option is to engage with a particular niche consultancy that only provided experienced and qualified consultants in order to help you fit in all the compliance requirements and carry on your day job. Not the cheapest option, but a wise person would never confuse cost with price.
The regulator’s business plan for 2018 has created a raft of focused areas for the remainder of 2018 and start of 2019. From the FCA Handbook there are a variety of hotspots and they are determined to use their powers under the FSMA 2000 to progress, investigate and enforce where appropriate. Whatever FCA Regulated Activities you have permissions for, I am sure you will see that there is something for everybody.
The following list identifies the regulators cross-sector priorities to be addressed over the coming few months:
– Firms’ culture and governance
– Tackling Financial crime (fraud & scams) & anti-money laundering (AML).
– Data security, resilience and outsourcing.
– Innovation, big data, technology and competition.
– Treatment of existing customers.
– Long-term savings, pensions and intergenerational differences.
– High cost credit.
– Wholesale financial markets.
– Investment Management.
As a part of the FCA’s ongoing programme of work they continue to mitigate harm from firms selling Contracts for Difference (CFDs) and spread bets to retail customers who often do not comprehend the risks of these complicated, leveraged instruments.
They are also concentrating on binary options, which entered into the FCA’s regime from January 2018. Their work involves a coordinated programme of policy and supervisory activity. In 2018, they will evaluate how well their interventions have worked and act where firms fail to meet expectations.
The FCA support the European Securities and Markets Authority’s (ESMA) agreed EU-wide temporary product intervention measures announced 27th March 2018. These include the prohibition of the marketing, distribution or sale of binary options to retail clients and a series of limitations on the marketing, distribution or sale of CFDs to retail clients, including rolling spot forex. The FCA expect to consult on whether to apply the ESMA measures on a permanent basis to firms offering CFDs and binary options to retail consumers.
The importance of self-governance and accountability: this is demonstrated in the extension of the Senior Managers and Certification Regime (SM&CR) to all regulated firms, incorporating dual regulated insurers. The FCA’s policy statement and new rules will be published in the summer of 2018 and the SM&CR will be extended to insurers on 10 December 2018.
So there is a huge raft of work going on which is quite in addition to the changes to the FCA Handbook after MiFID II, and your very own monitoring plan, that we calculate for most firms includes over 60 diverse events, from governance reviews (several day’s work in itself) through to whistleblowing and reporting (Gabriel returns anyone?), financial promotions and conflicts of interest through to KYC and Money Laundering and TCF, to name but a few.
With Liz Field of PIMFA joining with the FCA in encouraging advisers to whistleblow on “bad behaviour” within the profession in order to bring down the cost of the FSCS levy, all firms should ensure they have their house in order if they have enough time.
Compliance Consultant offers various support packages that can be managed on-site or remotely (depending on your needs), or a mixture of both. Experienced and professionally qualified people that are as flexible as you need, with the goal of providing you with the very best compliance function possible, with regular reports by email of the work they have planned, work that they have undertaken and any challenges identified along the way.
Compliance Consultant.
Making Compliance Work.
0207 097 1434

Can You Really Afford Generic Ongoing Compliance Support?

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 compliance subsequently considers the regulators.

The problem with most companies, 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 ago, there is far too much to get done, to satisfy the needs of the regulators.
Obviously there are 5 main options;
  1. You can carry on as normal and let things get slowly further and further behind; not a great option, running the gauntlet of “not” being visited.
  2. You can devote more time to the compliance component, rejig the annual compliance monitoring plan and enlist other individuals in order to help; but you will need to supervise their efforts and if they are not “compliance” people, it may be even more work than you save.
  3. Engage one of the numerous consultancies that are either big 5 or quasi big 5, made successful by all the mis-selling of yesteryear and not necessarily focused on your type of business. These guys usually want a big chunk of profits to be “available” and supply ongoing support.
  4. You can recruit a compliance manager (or team) to perform the main bodies of work required, and have regular meetings to ensure they are staying on top of everything. This is expensive with all the rights of employees and the fringe benefits.
  5. The final option is to engage with a niche consultancy that only provided experienced and qualified consultants to assist you fit in all the compliance necessities and maintain your day job. Not the cheapest option, but a thinker would never confuse cost with price.
fca template compliance manual risk management fca handbookThe regulator’s business plan for 2018 has created a raft of focused areas for the remainder of 2018 and start of 2019. From the FCA Handbook there are a variety of hotspots and they are determined to use their powers under the FSMA 2000 to progress, investigate and enforce where appropriate. Whatever FCA Regulated Activities you have permissions for, I am sure you will see that there is something for everybody.
The following list identifies the regulators cross-sector priorities to be addressed over the coming few months:
  • Firms’ culture and governance
  • Tackling Financial crime (fraud & scams) & anti-money laundering (AML).
  • Data security, resilience and outsourcing.
  • Innovation, big data, technology and competition.
  • Treatment of existing customers.
  • Long-term savings, pensions and intergenerational differences.
  • High cost credit.
  • Wholesale financial markets.
  • Investment Management.
As a part of the FCA’s ongoing programme of work they continue to mitigate harm from firms selling Contracts for Difference (CFDs) and spread bets to retail customers who often do not comprehend the risks of these complicated, leveraged instruments.
They are also concentrating on binary options, which came into the FCA’s regime from January 2018. Their work involves a coordinated programme of policy and supervisory activity. In 2018, they will evaluate how well their interventions have worked and act where firms fall down and cannot meet expectations.
The FCA support the European Securities and Markets Authority’s (ESMA) agreed EU-wide temporary product intervention measures announced 27th March 2018. These include the prohibition of the marketing, distribution or sale of binary options to retail clients and a range of limitations on the marketing, distribution or sale of CFDs to retail clients, including rolling spot forex. The FCA expect to consult on whether to apply the ESMA measures on a permanent basis to firms offering CFDs and binary options to retail customers.
The importance of self-governance and accountability: this is demonstrated in the extension of the Senior Managers and Certification Regime (SM&CR) to all regulated firms, incorporating dual regulated insurers. The FCA’s policy statement and new rules will be published in the summer of 2018 and the SM&CR wasextended to insurers on 10 December 2018.
fca template compliance manual smcr supplementThere is a huge raft of work going on and that is quite apart from the changes to the FCA Handbook after MiFID II, and your own monitoring plan, that we calculate for most firms includes over 60 different tasks, from governance reviews (several day’s work in itself) through to whistleblowing and reporting (Gabriel returns anyone?), financial promotions and conflicts of interest through to KYC and Money Laundering and TCF, to name but a few.
With Liz Field of PIMFA joining with the FCA in encouraging advisers to whistleblow on “bad behaviour” within the profession in order to bring down the cost of the FSCS levy, all firms should make certain they have their house in order if they have the time.
Compliance Consultant offers various support packages that can be managed on-site or remotely (depending on your needs), or a mixture of both. Experienced and professionally qualified people that are as flexible as you need, with the goal of providing you with the very best compliance function possible, with regular reports by email of the work they have planned, work that they have undertaken and any challenges identified along the way.
Compliance Consultant.
Making Compliance Work.
0207 097 1434

Senior Managers & Certification Regime: is your HR function prepared for becoming successful

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 most strict individual accountability codes throughout all industries, making executives open to fines, including jail, for failure within their oversight.

This is not only a “Compliance” thing, it is most undoubtedly an area wherein not only the board, executive committee and individual directors will need to understand what they are answerable for, but some other departments in the business as well.
The HR function must play a central role in dealing with the processes that underpin long-term compliance. In the past, the operation concentrated on three components parts of the employee lifecycle, attracting talent, managing employment issues whilst it is there and letting it go. But the SMCR means HR needs to make sure that employees are ‘fit and proper’, manage regulatory submissions, furnish a lot more detailed regulatory references, clarify employees’ roles and help map their responsibilities, manage breaches to the conduct rules and disciplinary sanctions, and also review and incorporate the required changes to the HR lifecycle.
To step up to its new role as the custodian of SMCR compliance from the firm’s perspective, HR should ensure significant changes are embedded all through the employee lifecycle. If they are delivered accurately, they have the potential to produce a permanent and positive difference to how the organisation is managed and driven. This can possibly be accomplished in 2 steps; by concentrating then ensuring core HR processes fit for the Senior Managers & Certification Regime and then supporting their company to accept these changes.

Step one: Develop your core HR processes fit for SMCR

Bulletproof record-keeping methods and technology
The SMCR require that, in addition to making certain the employee’s current background check is sufficiently durable, firms must establish processes and systems to store employees’ records for external scrutiny over a long period. This is 6 years for all employees after they leave the firm and 10 years for senior managers because of the fully extended period of investigation and any bonus clawback. It also requires business to keep an audit trail of the actions taken if a breach of the conduct rules transpires and trail any disciplinary processes, outcomes and actions, all fitness and propriety evaluations and any training delivered around the regime.
If possible, the Certification Regime should be addressed and managed similarly with checks that are just as robust and documentary evidence of roles, performance and decision making of all of those in a position of causing harm to the company. Certificated and even non-certificated staff (excluding ancillary staff) are also obligated to adhere to the FCA Code of Conduct rules (COCON).
If a breach does arise, it is HR’s responsibility to prove that appropriate record-keeping processes and tools remain in place to flag any misconduct. Information should also be shared in a timely manner with internal stakeholders, such as audit and compliance, and the regulator.
Currently, record-keeping is variable across the financial services sector, with standards across companies varying considerably. So, even though the extent to which employee records might be shared is still to be defined legally, organisations need to be sure their record-keeping processes and tools are embedded and foolproof.
Control breaches and suspected breaches
A breach will definitely lead to one or several senior managers coming under scrutiny and potentially being suspended, impacting business as usual and intensifying the level of anxiety among staff and management. The HR function must be totally ready to reply to the human and the business impact concerning this.
From the employee’s perspective, being under investigation can possibly be frustrating and negatively impact a career and reputation, whether or not proven innocent. The onus lays on the FCA to prove deception or incompetence, they have to carry the burden of proof, but companies should be crystal clear where responsibility lies for giving assistance to employees during an investigation and what type of support may possibly be offered. The business’s management need to also update job descriptions to make sure an appointed individual is responsible for taking care of such events, and has acquired not only the appropriate training and coaching to do so efficiently, but also the appropriate Management Information (MI) to make them aware of any issues.
Breach scenarios are a great way for you to see how your organisation would react if one occurred. Designing tailored answers, as well as creating a rapid response team that is trained to manage such events, could all be necessary activities.
Align performance management.
The regime’s requirements mean enterprises must have a performance review process that ensures their employees are ‘fit and proper’. Especially, the process should assess fitness and propriety throughout the year, not just at an annual review. This is a good incentive for companies to take stock of their yearly performance review processes, and may produce significant changes to how and when they evaluate their people, and integrate them with the necessary regime checks.
Train those at the top
For senior managers, the focus of training should be on rolling out a corporate framework and adapted leadership development programme that enables them to evidence their ‘reasonable steps’ obligations. Ongoing stress tests and scenario analysis will likely help senior managers make the appropriate improvements to their overall governance, controls and delegations as their business or functional units evolve within the business. This will make sure the correct training, decision making etc. is in place and raise any potential issues.

Step two: Support the firm’s culture and values

Attract talent and enhance the corporate brand
Tarnished by bad press and a catalogue of scandals, the financial services industry has been struggling to attract needed talent.
The new regulations provide an unmissable opportunity to improve the reputation of the financial services industry as a whole, and the winners will be organisations that have completely embraced and embedded the required changes to a degree that positively impacts their employer brand. Carried out correctly, these changes could even improve public perception of the corporate brand.
Redefine culture
Under SMCR, encouraging a culture of compliance and risk management has become a directed responsibility for the board and senior managers. A standardised and transparent operational risk framework is essential to these changes. As Tracey McDermott, the former Director of Enforcement and Financial crime at the FCA, said: “We are beginning to rebuild a culture within financial services that is more centred on consumer needs, with a regulator in place that has the right tools and approach, to uphold and encourage the standards the public has the right to expect.”
It’s likely that every financial services business is going to be individually assessed on culture by the regulators. They will determine if there are any improvements in areas like individual accountability, remuneration, conduct rules and whistle-blowing, and whether senior management are proving the right values and behaviours. This will require a broad set of internal stakeholders from across the business to come together, including those of different generations or rank, under the close sponsorship of board members. These stakeholders must pay attention to identifying priority areas where improvements really need to happen, following through on changes created to make accountability a core component of the company.
To overcome the challenges of SMCR and incorporate its great potential, organisations must begin by upskilling their HR, Compliance and Risk teams on all SMCR conditions as early as possible to see to it nothing falls into any cracks and to drive real and lasting change. Only by doing this can business ensure regime compliance and, most critically, gain the organisation advantages and benefits that an increase in ownership and accountability will drive.
We have inexpensive and practical scalable software available that will centrally and securely manage each of these areas for you and reduce time wasted on keeping personalised, individual logs, review evidence, download and access “footprint” trails, that are often impossible with the average PC based systems and nested folders.

To talk with one of our experts about how we can help your company respond to the SMCR, or adapting our skills to any industry or enterprise, contact us today.

Other Posts you ay find of interest
Senior Managers & Certification Regime https://wp.me/p7OMfd-2mj
SMCR: Client dealing function CF30 https://wp.me/p7OMfd-2n4
Head of Legal https://wp.me/p7OMfd-2mm
Systems & Controls https://wp.me/p7OMfd-2nb
SMCR: Intermediary revenue criteria for the enhanced tier https://wp.me/p7OMfd-2n7
SMCR: Limited Scope Firms https://wp.me/p7OMfd-2nd
Lee Werrell Chartered FCSI
Compliance Doctor
0207 097 1434.
http://ComplianceDoctor.co.uk

SMCR: is your HR function 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 edicts throughout all industries, resulting in executives open to punishments, including jail, for failure beneath their oversight.

This is not merely a “Compliance” thing, it is most definitely an area wherein not only the board, executive committee and individual directors ought to appreciate what they are accountable for, but some other teams in the business as well. The HR operation must play a main role in handling the processes that underpin long-term compliance.

Historically, the operation focused on three parts of the employee lifecycle, drawing in talent, taking care of employment issues whilst it is there and letting it go. But the SMCR means HR has to ascertain employees are ‘fit and proper’, manage regulatory submissions, present much more detailed regulatory references, clarify employees’ roles and help map their responsibilities, manage breaches to the conduct rules and disciplinary sanctions, and even review and carry out the necessary changes to the HR lifecycle.
To rise to its new role as the protector of SMCR compliance from the firm’s perspective, HR should ensure that important changes are embedded across the employee lifecycle. If they are produced successfully, they have the potential to make a permanent and positive difference to how the business is managed and controlled. This can be obtained in 2 steps; by focusing then producing core HR processes suitable for the Senior Managers & Certification Regime and then supporting their company to welcome these changes.

Step one: Make your core HR processes suitable for SMCR

Bulletproof record-keeping methods and technology
The SMCR demands that, as well as making certain the employee’s current background check is sufficiently strong, business must develop processes and systems to store employees’ records for external scrutiny over a lengthy period. This is six years for all employees after they leave the organisation and 10 years for senior managers thanks to the fully extended period of investigation and any bonus clawback. It also necessitates business to keep an audit trail of the actions taken if a breach of the conduct rules takes place and track any disciplinary processes, outcomes and actions, all fitness and propriety reviews and any training delivered around the regime.
If at all possible, the Certification Regime should be handled and managed similarly with checks that are equally as robust and documentary evidence of functions, performance and execution of any of those in a position of causing harm to the company. Certificated and even non-certificated staff (excluding ancillary staff) are also obligated to comply with the FCA Code of Conduct rules (COCON).
If a breach does take place, it is HR’s responsibility to demonstrate that appropriate record-keeping processes and tools reside in place to flag any misconduct. Information should also be provided in a timely manner with internal stakeholders, for instance, audit and compliance, and the regulator.
Currently, record-keeping is patchy across the financial services sector, with standards across businesses varying considerably. So, though the extent to which employee records may be shared is still to be defined legally, business need to see to it their record-keeping processes and tools are embedded and flawless.
Control breaches and suspected breaches
A breach will cause one or several people coming under scrutiny and potentially being suspended, impacting business as usual and intensifying the level of anxiety among staff and management. The HR function must be fully ready to address the human and the business impact concerning this.
From the employee’s point of view, being under investigation could be overwhelming and detrimentally impact a career and reputation, even if proven innocent. The onus is on the FCA to prove deception or incompetence, they will have to carry the burden of proof, but companies should be clear where responsibility lies for giving assistance to employees during an investigation and what sort of support could be offered. The company’s management need to also update job descriptions to make sure an appointed individual is responsible for dealing with such events, and has obtained not only the appropriate training and coaching to do so effectively, but also the appropriate Management Information (MI) to make them knowledgeable about any issues.
Breach scenarios are a wonderful way for you to see how your organisation would react if one arose. Designing tailored answers, in addition to creating a rapid response team that is trained to manage such events, could all be necessary actions.
Align performance management.
The regime’s requirements mean organisations must have a performance review process that ensures their employees are ‘fit and proper’. Especially, the process should assess fitness and propriety throughout the year, not just at an annual review. This is a good incentive for firms to take stock of their yearly performance review processes, and may cause significant changes to how and when they evaluate their people, and integrate them with the necessary regime checks.
Train those at the top
For senior managers, the focus of training should be on presenting a corporate framework and tailored leadership development programme that enables them to evidence their ‘reasonable steps’ commitments. Ongoing stress tests and scenario analysis will definitely help senior managers make the appropriate enhancements to their overall governance, controls and delegations as their business or functional units evolve within the company. This will assure the correct training, decision making etc. is in place and raise any potential issues.

fca template compliance manual risk management fca handbookStep two: Support the company’s culture and values

Attract talent and enhance the corporate brand
Tarnished by bad press and a catalogue of scandals, the financial services industry has been striving to attract needed talent.
The new regulations provide an unmissable opportunity to improve the reputation of the financial services industry as a whole, and the winners will be organisations that have fully embraced and embedded the required changes to a degree that positively impacts their employer brand. Carried out correctly, these changes could even improve public perception of the corporate brand.
Redefine culture
Under SMCR, ensuring a culture of compliance and risk management has become a prescribed responsibility for the board and senior managers. A standardised and transparent operational risk framework is key to these changes.
As Tracey McDermott, the former Director of Enforcement and Financial crime at the FCA, said: “We are beginning to rebuild a culture within financial services that is more centred on consumer needs, with a regulator in place that has the right tools and approach, to uphold and encourage the standards the public has the right to expect.”
It’s likely that every financial services company is likely going to be individually assessed on culture by the regulators. They will determine if there are any improvements in areas for example, individual accountability, remuneration, conduct rules and whistle-blowing, and whether senior management are displaying the right values and behaviours. This will require a broad set of internal stakeholders from across the business to come together, involving those of different generations or rank, under the close sponsorship of board members. These stakeholders must target identifying priority areas where improvements really need to happen, following through on changes developed to make accountability a core section of the business.
To overcome the challenges of SMCR and incorporate its great potential, organisations must begin by upskilling their HR, Compliance and Risk teams on all SMCR needs as early as possible to be sure nothing falls into any cracks and to drive real and lasting change. Only by doing this can organisations ensure regime compliance and, most critically, gain the company advantages and benefits that an increase in ownership and accountability will drive.

We have affordable and practical scalable software available that will centrally and securely manage all of these areas for you and reduce time wasted on keeping personalised, individual logs, review evidence, download and access “footprint” trails, that are often impossible with the average PC based systems and nested folders.

To speak to one of our experts about how we can help your firm respond to the SMCR, or adapting our skills to any industry or enterprise, contact us today.

You may also be interested in
Senior Managers & Certification Regime https://wp.me/p7OMfd-2mj
SMCR: Client dealing function CF30 https://wp.me/p7OMfd-2n4
Head of Legal https://wp.me/p7OMfd-2mm
Systems & Controls https://wp.me/p7OMfd-2nb
SMCR: Intermediary revenue criteria for the enhanced tier https://wp.me/p7OMfd-2n7
SMCR: Limited Scope Firms https://wp.me/p7OMfd-2nd
Lee Werrell Chartered FCSI
Compliance Doctor
0207 097 1434
smcr supplement compliance manual insurer

SMCR: Your Action Points

SMCR-Senior-Managers-certification-regime-fca

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 evidence their compliance with the SMCR, virtually every member of staff within a financial services firm has to have had their professional competence certified, CPD assessed and their conduct evaluated at least annually. Again, this should be documented and reported on to the FCA.

Who does this apply to?
So banks have had to meet these standards for the past couple of years but now the rules have been extended to cover almost all Financial Services Firms from Insurers to IFA’s, essentially it will apply to all FSMA authorised firms. It also applies to branches of non-UK firms with permission to carry out regulated activities in the UK.
The FCA have created three new classifications to allow the requirements to be applied in line with potential risk. Enhanced which, will have expected to meet requirements that are similar to the banking SM&CR rules; Core (which applies to the majority) and Limited Scope who will have a lighter set of requirements. The regime applies per legal entity so if you have more than one legal entity in your firm then you need to apply the regime to each one, again adding complexity and admin so you may want to consider a system like ours.
What are the requirements?
We have summarised these below
fca template compliance manual risk management fca handbookEnhanced Firms have 17 SMF’s; 12 Prescribed Responsibilities and some additional Overall Responsibilities. Full details are in Chapter 7 of the FCA paper itself.
Core Firms have 6 SMF’s to report on which comprise of 4 Governing Functions namely Chief Executive; Executive Director; Partner; Chair and 2 Required Functions; Compliance Oversight and Money Laundering Reporting Officer. There are also 5 Prescribed Responsibilities that must be given to Senior Managers and an additional responsibility for Authorised Fund Managers if relevant– remember to duplicate this for each legal entity!
Limited Firms have 3 SMF’s, SMF 29, Limited Scope Function; SMF16, Compliance Oversight; SMF 17, Money Laundering Officer. The Governing Functions will depend on specific permissions and activities and the FCA direct you to their handbook to read about these. No Prescribed Responsibilities apply to Limited Scope firms.
Implementation of the SMCR rules – your action points:
  • Identify appropriate business functions and business areas across all entities that are within the regime as relevant authorised persons. This includes identifying the FCA’s 27 categories of activity are already allocated
  • Identify current Significant Influence Function (SIF) holders of relevant entities and consider how they will be grandfathered over into new roles under the new regime. Confirm these are suitable.
  • Identify any territorial scope issues relating to the location of key personnel and teams.
  • Review current organisational charts and reporting lines for all impacted entities to collaborate in analysis of which individuals will have total responsibility for key functions by reporting to the Board and which individuals are senior but do not require to be approved as Senior Managers within the key business area function. In complex groups review reporting lines out of the UK or into the UK and to group entities. Roles that have dual responsibility actually carry 100% responsibility each.
  • If reporting lines and organisational charts are not fully up to date or detailed, update to ensure they reflect the status before overlaying the new SMCR regime requirements.
  • Identify who will perform FCA SMFs (regardless structure of business).
  • Identify applicable responsibilities and functions for every Senior Manager.
  • Assess and map application of SMFs to business model.
  • Propose relevant re-organisation of structure to meet requirements relative to allocation of responsibility, where necessary.
  • Consult and agree with individual employees on the relevant responsibilities.
  • ( If necessary) restructure business areas reporting to Senior Managers in order to reach agreement relative to Statements of Responsibilities.
  • Draft template Statements of Responsibilities for different Senior Managers, where possible based upon existing job descriptions or any model statements provided by guidance from the regulators or elsewhere to follow requirements.
  • Ensure Statements of Responsibilities take into consideration collective decision-making and delegation where appropriate.
  • Implement reorganisation and change of reporting lines as required.
  • Establish processes for recruitment of Senior Managers which ensure that fitness and propriety, training and other issues have been taken into account ahead of time.
  • Establish processes for annual assessment of Senior Managers.
  • Possible recruitment for flexible, multi-availability with capacity, temporary compliance consultants to manage processes, including project management.
  • Educate Senior Managers on their responsibilities and processes and establishing processes for Senior Managers in regard to delegation.
  • Formulate plan for engagement with FCA in relation to approval process.
  • Draft forms for submission to FCA for approval.
compliance consultants london apcc compliance consulting firms in london fsmaFor Enhanced Firms only:
  • Write out firm management responsibilities map. In complex groups ensure that this takes proper account of relationships with other group entities for business silos.
  • Ensure that there is a Senior Manager with responsibility in every activity, business area and management function in the firm.
  • Ensure Statement of Responsibilities dovetailed holistically across all Senior Managers in addition to working at an individual level, ensuring that there are no gaps in or duplications of responsibilities.
  • Review and/or implement policy for handover procedures, laying out what information a new Senior Manager will have to hand when replacing a predecessor.
If you are a UK authorised firm, Compliance Consultant specialise in UK Regulatory Financial Services Governance Risk & Compliance, and can assist your firm in the preparations for the SM&CR. Just search Google for “Compliance Consultants, London” and look for our tag on Google Maps (we’re usually # 1).

We can assist in your governance monitoring and general compliance and risk management for an inexpensive solution and help you create the reports and responses you may need in differing situations. Call today!

Other blog posts on SMCR
Senior Managers & Certification Regime https://wp.me/p7OMfd-2mj
SMCR: Client dealing function CF30 https://wp.me/p7OMfd-2n4
Systems & Controls https://wp.me/p7OMfd-2nb
SMCR: Intermediary revenue criteria for the enhanced tier https://wp.me/p7OMfd-2n7
SMCR: Limited Scope Firms https://wp.me/p7OMfd-2nd
Lee Werrell Chartered FCSI
Compliance Doctor
0207 097 1434