So it’s Finally Here – Solo Regulated Firms From the end of 2019 will be under the SM&CR regime.
The SM&CR aims to reduce harm to consumers and strengthen market integrity by creating a system that enables firms and regulators to hold people to account. As part of this, the SM&CR aims to:
• encourage staff to take personal responsibility for their actions
• improve conduct at all levels
• make sure firms and staff clearly understand and can show who does what
This will mean a raft of work for smaller firms and they will need to start immediately to get ready for the early December deadline.
Things to consider include
- The Senior Management Functions (SMFs)
- Statements of Responsibilities (SoRs)
- The Duty of Responsibility
- Fit and proper requirements
- Impact on firm governance and structure
- Holding more than one SMF
- The 12-week rule
- Outsourcing under the SMR
- Applying conditions when approving Senior Managers
- Prescribed Responsibilities (PRs)
- Who the PRs should be given to
- Dividing and sharing a PR
- Partnerships under the Senior Managers Regime
- What are ‘Reasonable Steps’?
As well as
- Mapping APR functions to SMFs
- Function mapping for Core and Limited Scope firms (including branches)
- What to do if your current controlled function is not listed
- Exception – individuals to perform the SMF9 – Chair role
- Executive Chairs
- New and applications in progress (including transfers of existing approved individuals)
- New approvals to be effective before Commencement
- New approvals to be effective after Commencement
- Moving an existing approved individual into a SMF that doesn’t map from their APR function
- Applications in progress at Commencement
- Interim applications for roles which won’t be approved under the SM&CR
We have worked on this with small banking organisations (as well as big ones) and can help. Call us on 0207 097 1434