FCA unveils guidance ahead of SMCR extension

Personal culpability of senior managers to increase from December 2019

The Financial Conduct Authority (FCA) has issued guidance ahead of the extension of the Senior Managers and Certification Regime (SMCR) in December 2019, when personal accountability of senior staff will come under increased scrutiny from the regulator.

In July the FCA confirmed its "near-final" rules for the incoming regulation, which aims to "reduce harm to consumers" by making senior people in firms more responsible and accountable for their actions. The regime was first rolled out to banks but has now been extended to the rest of the UK financial services sector. FCA: Cultural change needed to rebuild trust in financial services Under the new regime, which will be extended to wealth and asset managers on 9 December 2019, the following roles will be considered senior manager functions (SMFs): chief executive (SMF1), executive dire...