Understanding the Senior Managers & Certification Regime (SM&CR).pdf

The Senior Managers & Certification Regime (SM&CR) is a regulatory framework introduced to enhance accountability and governance within financial services, replacing the Approved Persons Regime (APR). Implemented after the financial crisis, its goal is to reduce consumer harm and strengthen market integrity by focusing on individual responsibility. The regime applies to all FCA-regulated firms and consists of two key components: the Senior Manager Regime, which identifies individuals with significant responsibilities, and the Certification Regime, which requires annual certification of roles that pose significant risk to the firm or its customers. Firms must ensure compliance by certifying the fitness and propriety of individuals and maintaining appropriate documentation. MEMA Consultants offer support in understanding and implementing SM&CR requirements, including application preparation and compliance guidance.

1. Introduction to the Senior
Managers & Certification
Regime (SM&CR)
What is SM&CR?
Replaces the Approved Persons Regime (APR).
Introduced to enhance accountability and governance in financial services.
Focuses on individual responsibility and reducing harm to consumers.

2. History and Purpose of SM&CR
History:
Created in response to the financial crisis.
Aims to strengthen market integrity and consumer protection.
Purpose:
Increase individual accountability in financial firms.
Ensure senior managers and certified individuals are fit and proper.

3. Key Components of SM&CR
Senior Manager Regime:
Identifies individuals with significant responsibilities.
Requires FCA approval and a statement of responsibilities.
Certification Regime:
Applies to roles with potential significant harm.
Firms must certify individuals annually as fit and proper.

4. Firm’s Responsibilities Under
SM&CR
For Senior Managers:
Ensure the individual is fit and proper.
Submit required documents for FCA approval.
For Certified Roles:
Identify and certify relevant individuals.
Ensure no uncertified individual performs a certification function.

5. MEMA’s Support and Next Steps
How MEMA Can Help:
Assist with SM&CR application preparation.
Provide guidance on fit and proper requirements.
Next Steps:
Conduct a thorough review of your firm’s SM&CR requirements.
Contact MEMA for expert assistance with your application and compliance needs.

6. CONTACT US
[email protected]
EMAIL
+ 03301330811
MOBILE
Suite 1810, Unit 3a,34-35 Hatton Gardens, Holborn,
EC1N 8DX
MAILING ADDRESS

7. THANK YOU