Reference Case Number: FOI9138
Freedom of Information: Right to know request:
The Senior Managers and Certification Regime ('SMR') came into effect for banks and building societies in March 2016, for dual-registered insurers in December 2018 and for solo-regulated firms in December 2019.
For each calendar year from 2016 to 2020 inclusive, how many senior managers were:
- fined (together with the total amount of such fines for that year;
- sanctioned (meaning the removal of permissions, or from the register) or
- prosecuted, specifically under the provisions of and due to breaches under the SMR? Please break down the figures by category of firm, ie banks and building societies, dual-registered insurers and solo-regulated firms.
FCA response:
- The Senior Managers and Certification Regime (SM&CR) has applied to Senior Manager Functions (SMFs) at UK banks, building societies, credit unions, branches of foreign banks operating in the UK and the largest investment firms regulated by the PRA and the FCA since 7 March 2016.
- SMFs at dual-regulated insurers (regulated by both the FCA and PRA) have been subject to the SM&CR since 10 December 2018.
- The SM&CR replaced the Approved Persons Regime (APER) for SMFs from 9 December 2019 for solo-regulated firms regulated by the FCA only.
- For banking firms, the FCA Code of Conduct (COCON) was extended to non-SMF staff from 07 March 2017. For insurance firms, COCON was extended to apply to non-SMF staff from 09 December 2019. It was extended from 31 March 2021 for solo regulated firms. The COCON rules apply to those staff that fall under the SM&CR.
Any potential misconduct by individuals at firms prior to the dates listed above when the new regimes became effective is captured under APER. In total, the FCA has over 370 individuals under investigation for a range of potential breaches, including APER, COCON, Fitness and Propriety (FIT), and criminal misconduct.
You have asked for SMF data only – this is provided in the table below, which details for the period which you have specified, the outcomes of the 47 investigations into SMFs under the SC&CR.
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
Total |
|
|---|---|---|---|---|---|---|---|
|
Financial Penalty; Public Censure |
Senior Manager |
0 |
0 |
1 |
0 |
0 |
1 |
|
Non-SMF individuals* |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
Prohibition |
Senior Manager |
0 |
0 |
0 |
1* |
0 |
1 |
|
Non-SMF individuals |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
Undertaking** |
Senior Manager |
0 |
0 |
1 |
0 |
0 |
1 |
|
Non-SMF individuals |
0 |
0 |
1 |
0 |
0 |
1 |
|
|
No further formal enforcement action*** |
Senior Manager |
0 |
0 |
3 |
1 |
11 |
15 |
|
Non-SMF individuals |
0 |
0 |
4 |
9 |
15 |
28 |
|
|
Total
|
0 |
0 |
10 |
11 |
26 |
47 |
|
*Includes Certified Individuals, Material Risk Takers, and other staff to whom COCON applies.
**Where the FCA obtains written agreement from the firm or individual that they will do (or refrain from doing) a particular thing.
***Includes cases where there was insufficient evidence of a breach or where alternative action was taken, for example Supervisory action.