FCA Consults on Extending SMCR Deadlines


The FCA is consulting on extending the deadlines for the SMCR for solo-regulated firms until 31 March 2021. This delay will give firms, significantly affected by the Covid-19, time to make the changes they need. 

This consultation proposes making changes to our rules to effect this change. It also proposes making a corresponding extension to the deadline for training staff in the Conduct Rules and reporting Directory Person data to 31 March 2021.

As the training programmes requires planning, time and effort the regulator understand that firms need more time to deliver effectively. The proposals seek to reduce the burden to firms affected by the pandemic and make sure that regulatory standards are meet.

“Senior Managers must ensure that Conduct Rules training is effective, so that staff are aware of the Conduct Rules and understand how they apply to them in their jobs.” Add the FCA on the latest SMCR update on July 17th.

In addition, in the consultation paper the FCA encourages firms to submit details of certified employees before March 2021. The regulator will make them available from 9 December 2020 on the Financial Services Register.

The consultation ends on 14 August 2020. For more details on the consultation, please consider visiting the FCA website.

Background to the SMCR

The Senior Managers & Certification Regime (SMCR) is designed to reduce harm to consumers and strengthen market integrity. The FCA wants to ensure that employees at all levels are taking responsibility for their actions. SMCR is expecting a “statement of responsibility”, well trained and educated staff on the new code of conduct. In the past, the media reported a great number of conduct scandals, with that the FCA saw the need to bring the regime forward, focusing on good conduct, personal accountability, and responsibility.

Since 2019, the FCA has been articulating better what good conduct looks like, and during the pandemic the regulator has been talking about the expectations around good conduct. Specialists on SMCR highlights that during the current crisis, it's important to focus on good conduct and training. Firms should have a positive approach to encourage the right sort of behaviours within organizations. 

If you want more details about SMCR watch our on-demand webinar, where Liz Hornby from Eukleia goes through a checklist with more details of the regime, giving you five main steps that you must take to comply.

If you are looking for better understanding of the regime, we have a number of blogs that cover SMCR and give Senior Managers and Compliance teams insights in how to comply with the regime: