PIMFA
SENIOR MANAGERS & CERTFICATION REGIME
The Senior Managers & Certification Regime (SMCR) consists of three key parts:
- the Certification regime
- the Conduct Rules
- the Senior Managers Regime
The SMCR was introduced in December 2019 to set a new standard of conduct in financial services, with the aim of ensuring key staff are fit and proper to perform their roles, have greater personal accountability, and to set minimum standards of conduct.
SMCR applies to almost every UK solo-regulated firm, from very small firms (including sole traders and limited permission consumer credit firms) to some of the largest global firms. It is part of the FCA’s drive to improve culture, governance and accountability in financial services. It aims to increase individual accountability and reduce misconduct. Compliance with SMCR and embedding a positive culture should be a priority for firms.
- UPDATE
In 2023, as part of the Edinburgh Reforms, HMT launched a Call for Evidence to review the performance, effectiveness, and scope of the regime. In parallel, the FCA and PRA published a joint discussion paper (DP) to seek input on potential ways to improve the SMCR regime
PIMFA responses can be found here:
latest news
PIMFA responds to FCA and HM Treasury consultations: Reforming the Senior Managers & Certification Regime
PIMFA has submitted responses to the FCA and HM Treasury (HMT) consultations regarding the Senior Managers & Certification Regime (SMCR).
The proposals aim to streamline SMCR, easing the burden on firms and clarifying requirements as part of the Leeds Reforms’ competitiveness agenda.
PIMFA support the principles underpinning SMCR and welcome steps to improve efficiency, though our responses notes there is little appetite for wholesale change to the regime.
The response to FCA CP 25/21 can be found here.
The response to HM Treasury can be found here.
