What is Senior Managers and Certification Regime?
The Senior Managers and Certification Regime (“SM&CR”) was introduced by the FCA to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence.
The SM&CR consists of the following:
- Senior Managers Regime: individuals performing a senior management function specified by the FCA or the PRA needs to be approved by the relevant regulator before they start their role. Once approved, firms need to certify that senior managers are suitable to do their jobs. If an individual isn’t considered “fit and proper”, they cease to be suitable to be a senior manager.
- Certification regime: this applies to employees of FCA/PRA firms who could pose a risk of significant harm to the firm or any of its customers. Whilst such individuals are not pre-approved by the regulators, firms must certify that they are fit and proper for their roles both at the outset of their employment and on a continuing basis.
- Conduct rules: these are high-level requirements which applies to persons within the scope of the SM&CR.
Farore Law is a leading boutique law firm that has a wealth of experience in advising senior executives on employment matters. We are well placed to provide appropriate advice regarding the enforceability of contractual terms, seeking a settlement agreement and commencing or defending litigation in the High Court or the Employment Tribunal.
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