FCA Details Feedback on Final SMCR Consult


The Financial Conduct Authority (FCA) announced it has received just 29 responses to a call for feedback on its final consultation regarding planned Senior Managers and Certification Regime (SMCR) changes. The FCA said "most" responses were supportive of its proposals, but some firms asked for additional clarity on how the new rules would apply to them. 

The FCA asked firms specific questions about its eight proposed amendments to the SMCR. In a small number of cases, respondents opposed the proposals altogether or suggested changes to their rules. However, the regulator implemented all eight proposals as originally planned.  

Trade bodies were among the respondents, including UK Finance, the Investment Association and the Association of British Insurers, which the FCA said demonstrated "clear evidence" of industry engagement.  

The FCA also confirmed final rules for its new directory of firms’ senior managers, stating solo-regulated firms could begin submitting data once the SMCR is introduced Dec. 9. The directory is currently planned to be introduced to the public in phases starting March 2020. 

In a recent Financial Times article on the FCA announcement, Shrenik Parekh, senior manager at accounting company BDO, said: "Today’s announcement of the SMCR final rules comes as a final reminder to businesses. They now have less than five months to implement the regime. 

He added: "We expect that next year the FCA will commence a thematic review across a number of sectors to ensure that firms are properly complying with SMCR requirements." 

For more information, please consider reading the article in the Financial Times. Or talk to MCO to see how we can help you address the challenges of SMCR. #smcr