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Compliance & HR Strategies to Meet SMCR Requirements

    

The Senior Managers and Certification Regime (SMCR) will apply to all solo U.K. firms regulated by the Financial Conduct Authority (FCA) starting this December. There are three main requirements organizations need to adhere to from both a compliance and human resources perspective to comply with the SMCR by the end of the year.  

  • #1: Pre-approval of a firm’s managers by the FCA along with a statement of responsibility that determines the scope of each senior manager’s functions and responsibilities under the SMCR; 
  • #2: Certification of employees performing functions that could cause significant damage to the firm or its customers as “fit and proper” to carry out their role; and  
  • #3: Training that ensures staff know how the conduct rules apply to them as well as how to report breaches to the FCA. 

 An article in the U.K. human resources publication People Management outlines the specific steps firms should be taking now to ensure they are in compliance with the SMCR by the end of the year. These include: 

  • Identifying and training senior managers and draft statements of responsibility; 
  • Amending related HR documentation; 
  • Reviewing the recruitment processes; 
  • Putting in place a process for annual certification; and 
  • Reviewing record keeping. 

For more information on how to complete these steps and adhere to the three main SMCR requirements, consider reading the article in People Management.  Or Contact us to learn how MCO can help Compliance Teams with the SMCR requirements.