The Time to Comply with SMCR is now says FCA


The time to being preparing to comply with the new Senior Managers and Certification Regime (SMCR) is now, according the Financial Conduct Authority (FCA). The FCA recently issued a reminder to firms regulated by the Financial Services and Markets Act (FSMA) that they must be ready to meet SMCR requirements when the December 9, 2019 effective date arrives.  

The FCA reinforced the aim of the SMCR is to establish healthy cultures and effective governance in firms by encouraging greater individual accountability and establishing a new standard of personal conduct.” 

The regulator published guidance in March to help firms understand their new obligations under SMCR. Senior mangers must have a Statement of Responsibility while larger, more complex firms must also create Responsibility Maps.  

Firms are also expected to establish a culture where all staff embrace the SMCR’s five new conduct rules: act with integrity; act with due care, skill and diligence; be open and cooperative with the FCA; pay due regard to the interests of customers and treat them fairly; and observe proper standards of market conduct. 

For more information on and insight from the FCA regarding SMCR requirements, consider reading the Financial Reporter’s recent article on the subject.