On 8 March, the FCA published guidance to help firms prepare for the Senior Managers and Certification Regime (SM&CR). The purpose of the guidance is to give FCA solo-regulated firms practical assistance and information on preparing Statements of Responsibilities (SoRs) and Responsibilities Maps. The guidance sets out the purpose of SoRs and Maps and outlines examples of good and poor practice. It also contains examples of Responsibilities Maps for two fictitious firms.
Under the SM&CR, all Senior Managers must have a Statement of Responsibilities and all enhanced firms must have a Responsibilities Map. A SoR should be clear for regulators, the Senior Manager and others in the firm to understand – and contain enough information to describe clearly what activities the Senior Manager is responsible and accountable for in the business. The guidance is designed to be read alongside the Guide for FCA solo-regulated firms.
The aim of the SM&CR is to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence.
Solo-regulated firms should be preparing for SM&CR which comes into effect on 9 December 2019.
If you need more information, please visit the FCA’s website and read our guide.