PS19/20: Optimising the Senior Managers & Certification Regime and feedback to CP19/4

Read PS19/20 (PDF)[1]

We made near-final rules[2] on the SM&CR in July 2018 and final rules for insurers[3] in September 2018. We identified a few areas where we need to make changes and consulted on this in CP19/4[4] in January 2019.

These changes are set out in this Policy Statement and are intended to provide extra clarity in some areas and help firms adjust to the SM&CR.

This Policy Statement makes final our rules on extending the SM&CR to FCA solo-regulated firms, including claims management companies (CMCs). It also makes final rules on a new Directory of individuals working in financial services.

Who this applies to

• Banking firms, Solvency II and large non-directive (NDF) insurers, and enhanced solo-regulated firms.
• Incoming branches of overseas relevant firms as well as other groups – particularly legal professional bodies.

It may also be of interest to other FSMA-authorised firms that the SM&CR will be extended to, and consumers interested in how the SM&CR operates within relevant firms to enhance individual accountability.

Next steps

Firms, including authorised CMCs, affected by these changes will move to the new regime on 9 December 2019. Handbook references in this Policy Statement refer to the rules set out in the accompanying Instrument.

For CMCs still operating on a temporary permission on 9 December 2019, the rules will apply from the date the firm is fully authorised. The approach to these firms is set out in PS19/9 and in the final rules in the Instrument that accompanies this PS.