The Senior Managers Certification Regime
As of 9 December 2019, the Senior Managers and Certification Regime (SMCR) – also referred to as the ‘Accountability Regime’ – replaced the Approved Persons Regime for all Finance Conduct Authority (FCA) registered firms. As Face To Face Finance is a FCA regulated firm, these changes affect our business.
There are three main features to the SMCR:
Senior Managers Regime
Each senior manager will have a Duty of Responsibility and a Statement of Responsibility. They are designed to enhance senior managers’ accountability within a firm. It requires them to take reasonable steps to ensure any areas of the firm they are responsible for complies with the relevant requirements and standards of the regulatory system.
The Certificate Regime
All employees who play a role that can affect the firm and its customers in a negative way fall under this regime. This will include those employees who interact with clients, are material risk takers, are proprietary or algorithmic traders or who perform a significant management or supervisory role. These employees are known as certified staff.
The Conduct Rules
The conduct rules are principles designed to ensure a high standard of behaviour for all staff (except for those in ancillary roles who do not perform a role specific to financial services). They ensure that employees are conducting their role with honesty and integrity and perform with skill, due care and attention.