You are here: Home - News -

FCA launches three consultations in extension of senior managers’ regime

by:
  • 13/12/2017
  • 0
FCA launches three consultations in extension of senior managers’ regime
Industry watchdog, the Financial Conduct Authority (FCA) has published three consultation papers intended to help firms and individuals transition to the Senior Managers and Certification Regime.

Post-credit crunch, the regulation is a bid to inject personal responsibility and accountability into financial services culture and processes. All responses are due by 21 February 2018 with final policy due out in the summer.

The regulator is also tailoring processes to accommodate differences in firm size and ease the way for Approved Persons to automatically convert to the new regime with no paperwork or applications.

The regulator has already consulted on the extension of the regime to “almost all regulated firms.”

The FCA said: “Firms can instead focus on embedding the cultural changes that the new regime introduces and making sure their staff know what they need to do.”

 

Duty of responsibility

The FCA is also consulting on extending the Duty of Responsibility to insurers and firms solely regulated by the FCA, as it only applies to senior managers of banks at the moment.

Under the duty of responsibility, senior managers are accountable for the business areas they lead and can be penalised if the regulator can show the senior manager did not take reasonable steps to avoid the breach occurring or continuing.

Jonathan Davidson, executive director of supervision – retail and authorisations at the FCA, said: “This next set of our proposals outline our plans for a smooth transition to the new regime, which is simple, clear and proportionate. Indeed, the vast majority of firms will not need to submit applications to convert existing approved persons to senior managers.”

In response to feedback, the FCA is also considering what the move to the new regime means for the Financial Service Register.

See all the consultation papers here:

1. CP17/40: Individual accountability: Transitioning FCA firms and individuals to the Senior Managers and Certification Regime
2. CP17/41: Individual accountability: Transitioning insurers and individuals to the Senior Managers and Certification Regime
3. CP17/42: The Duty of Responsibility for insurers and FCA solo-regulated firms

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
FOS warns its funding model ‘isn’t sustainable’ in budget plans

The Financial Ombudsman Service (FOS) warned its current funding model isn’t sustainable, as it laid outs its plans and budget...

Close