Final guidance readies solo-regulated firms for SMCR extension

A diverse array of financial services businesses are undergoing an overhaul this year to the way their staff are regulated. The Financial Conduct Authority’s final guidance sets out its three-tiered approach, along with its expectations for Statements of Responsibilities and Responsibilities Maps. Louise Skinner and Thomas Twitchett highlight the key points.

By partner Louise Skinner (louise.skinner@morganlewis.com) and associate Thomas Twitchett (thomas.twitchett@morganlewis.com) from law firm Morgan Lewis.

On 9 December 2019, the Senior Managers and Certification Regime will be extended to all Financial Conduct Authority solo-regulated firms. Ahead of this extension, and to assist affected firms, the FCA has released multiple guides. In July 2018, the FCA published its official guide to SMCR for solo-regulated firms containing near-final rules and a detailed overview of the regime. The FCA has now published final guidance for solo-regulated firms on how to prepare Statements of Responsibilities and Responsibilities Maps, both of which are integral components of the Senior Managers Regime.