Podcast: Individual Liability - Focus Areas for 2021 and Beyond, Marsh
(14 October 2021)
Partner Chris Warren-Smith spoke with Marsh about current developments around the world in relation to individual liability for directors and officers. He discussed the impact of COVID-19 and the increasing focus of governments on creating legislation that carries greater penalties for noncompliance.
UK Financial Conduct Authority Continues Focus on Diversity and Inclusion
(11 May 2021)
The UK Financial Conduct Authority (FCA) has recently announced that it is considering adding a sixth question on diversity and inclusion (D&I) to its five conduct questions (5CQs). The significance of D&I has long been discussed and highlighted by the regulator, but the announcement marks a further shift in the FCA’s level of focus on D&I and should be read alongside the collection of recent FCA speeches on the lack of gender and ethnic diversity at a senior level in financial services.
UK FCA Seeks to Ban Regulated Person for Nonfinancial Misconduct
(14 April 2021)
The Financial Conduct Authority (FCA) has emphasised in recent years that firms should consider nonfinancial misconduct when assessing the fitness and propriety of staff. On 29 March 2021, the FCA published a rare Decision Notice about the proposed ban of a regulated person for nonfinancial misconduct.
UK Financial Conduct Authority Makes Diversity and Inclusion a Regulatory Priority
(23 March 2021)
The UK Financial Conduct Authority (FCA) has recently published two speeches reiterating the broad and fundamental importance of diversity and inclusion within financial services. Delivered by the FCA’s executive team, the speeches cover (1) the significant work still to be done to improve diversity and inclusion in the sector; (2) the value of diversity and inclusion and their importance to a healthy culture; and (3) the steps the FCA may take in the future to drive improvement, including potentially changing the way in which it considers senior manager applications and introducing diversity requirements to premium listing rules. Firms are encouraged to take note and to review the adequacy and effectiveness of their current diversity and inclusion arrangements.
Preparing for Implementation of the Senior Managers and Certification Regime
(09 March 2021)
All dual-regulated and FCA solo-regulated firms are now under the scope of the Senior Managers & Certification Regime (SMCR), with many working hard in recent months to ensure all aspects of the regime are well embedded. As part of these efforts, it is crucial that firms establish an effective framework to prevent but also detect and manage conduct breaches if they do happen, and when it is necessary, report them.
FCA Releases Guidance to Assist Solo-Regulated Firms in Fitness and Propriety Assessments, Staff Training
(02 September 2020)
The UK Financial Conduct Authority recently closed its consultation (CP20/10) to extend the deadline for solo-regulated firms to conduct their first fitness and propriety assessments of certified staff and train all staff on the conduct rules, and updated its webpage with positive and negative indicators firms should consider when conducting the assessments and training. Firms should take action now to prepare for the full implementation of the Senior Managers and Certification Regime.
FCA Consults on Extending Senior Managers & Certification Regime Deadlines
(21 July 2020)
The Financial Conduct Authority (FCA) began a consultation (CP20/10) on 17 July on the extension of the deadlines by which FCA solo-regulated firms must have first assessed the fitness and propriety of their certified staff, trained staff in the Conduct Rules, and reported directory person data.
SM&CR and COVID-19: UK Regulators’ Expectations
(07 April 2020)
The UK Financial Conduct Authority and Prudential Regulation Authority have published statements setting out their expectations of dual-regulated and solo-regulated firms on their senior managers and certification regime requirements in the context of the coronavirus (COVID-19). They intend to provide flexibility to firms where they can and have made specific provisions in light of COVID-19.
SMCR Has Moved Up the Agenda, FT Adviser
(29 October 2019)
Morgan Lewis partner Louise Skinner authored an article in FT Adviser about the upcoming implementation of the Senior Managers and Certification Regime (SMCR) for solo-regulated firms in the UK. In the article, Louise discusses the impact of SMCR thus far and best practices for firms preparing for compliance.
UK Regulators Continue Focus on Cultural Accountability, Diversity in Financial Services Sector
(26 July 2019)
In a global environment of heightened regulatory accountability and scrutiny, the Bank of England, UK Financial Conduct Authority, and Financial Stability Board have signalled their continued interest in promoting the need for improvement in culture, conduct, and diversity in the financial services sector. Against the backdrop of the Senior Managers and Certification Regime, and following recent commentary from these regulators, expectations relating to culture in the financial services sector are evolving.
Final Guidance Readies Solo-regulated Firms for SMCR Extension
(10 May 2019)
Morgan Lewis partner Louise Skinner and associate Thomas Twitchett discuss the Financial Conduct Authority’s final guidance setting out its three-tiered approach, along with its expectations for Statements of Responsibilities and Responsibilities Maps, in relation to the extension of the Senior Managers and Certification Regime.
FCA Issues Final Guidance on Key Issues Ahead of SMCR Extension
(02 April 2019)
The Financial Conduct Authority (FCA) has recently published its final guidance on statements of responsibilities, responsibilities maps, and its policy statement on the new FCA directory for financial services workers, ahead of the extension of the Senior Managers and Certification Regime to all FCA solo-regulated firms from 9 December 2019. This is part of the FCA’s plan to increase accountability in the financial services industry.
SMCR: FCA Proposes to Exclude Heads of Legal from Senior Manager Approval
(04 February 2019)
The UK Financial Conduct Authority has proposed to exclude the head of legal function from the requirement to be approved as a senior manager under the Senior Managers Regime. It has also made further proposals in its consultation paper to optimise the Senior Management and Certification Regime, including by amending the intermediary revenue criterion for enhanced-tier firms, amending and clarifying the application of the Certification Regime, and extending the application of Senior Manager Conduct Rule 4.
UK’s Senior Managers and Certification Regime Extended to Insurance, Reinsurance Sectors
(10 December 2018)
The UK’s Senior Managers and Certification Regime (SMCR) is extended to the insurance and reinsurance sectors as of today, December 10. A package of regulatory rules and standards, SMCR is designed to fundamentally change the culture of firms and improve standards by ensuring that key responsibilities are clearly assigned to individuals, who are personally accountable, and that staff in certain positions are fit and proper to perform their roles and comply with mandatory standards of behaviour. Originally introduced in the UK banking sector in 2016 in an effort to ward off another financial crisis, SMCR is now being rolled out to the insurance and reinsurance sectors, and will be rolled out further to remaining FCA-regulated firms in December 2019.
SMCR: FCA Proposes Guidance on the Statement of Responsibilities
(12 November 2018)
The Financial Conduct Authority (FCA) proposed guidance on 11 October 2018 for formulating a Statement of Responsibilities for Senior Managers, ahead of the extension of the Senior Managers and Certification Regime (SMCR) to all FCA solo-regulated firms from December 2019. The FCA also published a consultation paper on 20 September 2018 on the application of SMCR to claims management companies, in light of it becoming the regulator of claims management companies from April 2019.
Back in the Boardroom for SMCR, IFLR
(01 November 2018)
Morgan Lewis partner Louise Skinner and associate Tom Twitchett have authored an article in IFLR about the extension of the Senior Managers and Certification Regime (SMCR)
Insurers Must Act Now to Prepare for SMCR Extension
(20 September 2018)
Morgan Lewis partner Louise Skinner has written an article in Insurance Day regarding the Senior Manager and Certification Regime extension, which will alter how most individuals working in the insurance sector are regulated from December 10.
SMCR Extension: FCA Publishes ‘Near Final’ Rules, Sets Implementation Date
(10 July 2018)
The Financial Conduct Authority and Prudential Regulation Authority published policy statements on 4 July on the extended Senior Managers and Certification Regime, setting out near final rules for solo-regulated firms and final rules for insurers. The FCA confirmed the implementation date for FCA solo-regulated firms and has launched a consultation on introducing a public register of individuals working in financial services.
UK SMCR vs APR: Criminal Record Checks and the FS Register in the New Accountability Era
(08 March 2018)
The Senior Managers and Certification Regime (SMCR), which came into force in March 2016 for UK banks, PRA-designated investment firms, and UK branches of foreign banks, changes the way in which individuals working in financial services are regulated. It was introduced to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence.
