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FCA SMCR Reasonable Steps – 6 Pointers To Keep You Safe

FCA SMCR Reasonable Steps

SMCR Reasonable StepsReasonable Steps under the Senior Managers and Certification Regime (SMCR) in the UK refer to the actions and measures that senior managers and certified individuals must take to ensure effective control and compliance within their areas of responsibility.

Here’s a concise overview of FCA SMCR Reasonable Steps:

1. Control Effectively: Senior managers should control their business areas effectively to ensure compliance with regulations.

2. Satisfy on Reasonable Grounds: Staff members subject to senior conduct rules must have reasonable grounds to believe that each aspect of their business area complies with regulations.

3. Delegation Oversight: When delegating tasks, it’s crucial to review and ensure the appropriateness of delegation, accompanied by clear documentation.

4. Framework and Policies: Consider implementing a “Senior Manager Reasonable Steps Framework” and relevant policies to help demonstrate compliance.

5. Review Competence: Regularly assess the competence, knowledge, skills, and performance of individuals within your area of responsibility.

6. Culture and Governance: Review delegation, governance, controls, and overall organizational culture to ensure they support compliance efforts.

Demonstrating reasonable steps is essential for senior managers and certified individuals to fulfill their legal obligations and maintain compliance with SMCR.

 

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Reasonable Steps

Citations:
[1] https://www.linklaters.com/en/insights/publications/risk-advisory/reasonable-steps-what-are-they-and-how-do-you-evidence-them
[2] https://www.handbook.fca.org.uk/handbook/COCON/4/2.html
[3] https://mycompliancecentre.com/smcr-and-reasonable-steps/
[4] https://www.corterum.com/smcr-reasonable-steps/#:~:text=This%20is%20usually%20known%20as,individual’s%20role%20and%20responsibilities%3B%20and
[5] https://www.corterum.com/smcr-reasonable-steps/
[6] https://regulationhub.co.uk/f/smcr-how-do-i-demonstrate-reasonable-steps

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