Introduction

Purpose and scope of the book

The financial industry is highly regulated, and compliance with regulatory requirements is essential for any financial services company. The Financial Conduct Authority (FCA) Senior Managers and Certification Regime (SMCR) is one such regulatory framework that applies to all UK financial services firms. The purpose of this book is to provide a comprehensive guide for financial services companies, FCA authorisation applicants, investment companies, independent financial advisers, wealth managers, insurance companies, Consumer Credit Act firms, banks, and anyone who is interested in understanding the SMCR.

The book covers the various aspects of the SMCR, including the scope of the regime, the senior manager functions, certification functions, conduct rules, regulatory reporting, enforcement, and disciplinary actions. The book is designed to provide a clear and concise understanding of the SMCR, its purpose, and scope.

The SMCR aims to improve accountability and responsibility within financial services firms. It requires firms to identify and assign key individuals to specific roles and responsibilities, known as senior manager functions. The book provides a comprehensive list of these functions, their descriptions, and the regulatory requirements associated with them.

The certification regime is another key aspect of the SMCR, which requires firms to assess and certify the fitness and propriety of individuals who perform certification functions. The book provides detailed guidance on who qualifies as a certified employee, how to assess their fitness and propriety, and how to maintain records of certification.

The book also covers the conduct rules that apply to all employees within financial services firms. The conduct rules aim to promote good conduct and prevent harm to consumers and the market. The book provides a detailed description of these rules and the regulatory requirements associated with them.

Regulatory reporting is an essential part of the SMCR, and the book provides guidance on the types of reports that firms must submit to the FCA, the frequency of reporting, and the regulatory requirements associated with them.

Finally, the book covers enforcement and disciplinary actions under the SMCR. It provides guidance on the types of enforcement actions that the FCA can take against firms and individuals who breach the SMCR, and the disciplinary actions that firms can take against their employees.

In summary, this book provides a comprehensive guide to navigating the FCA's Senior Managers and Certification Regime. It is an essential resource for any financial services company, FCA authorisation applicant, investment company, independent financial adviser, wealth manager, insurance company, Consumer Credit Act firm, or bank. The book provides clear and concise guidance on the purpose and scope of the SMCR, senior manager functions, certification functions, conduct rules, regulatory reporting, enforcement, and disciplinary actions.Overview of the FCA's Senior Managers and Certification Regime