FCA issues PS16/6 on Consequential Changes to the Senior Managers Regime

The FCA has issued the Policy Statement PS16/6 on Consequential Changes to the Senior Managers Regime.

The FCA issues this PS since in January 2016 it consulted on proposed consequential amendments to the Senior Managers and Certification Regime (SM&CR). These changes reflect HM Treasury’s removal of the requirement for firms to report known and suspected breaches of our conduct rules to the FCA, as set out under section 64B(5) of the Financial Services and Markets Act 2000 (FSMA).

This Policy Statement (PS) summarises the feedback received during the consultation and confirms the final policy and forms. The PRA will confirm its final rules and amended forms in a separate Policy Statement (PS).

This PS also finalises some minor technical amendments to SYSC 1 Annex 1, which deal with how SYSC applies to foreign branches. These amendments are required to ensure that SYSC 1 Annex 1 reflects our final rules for foreign branches.

This PS will be of primary interest to UK banks, building societies, credit unions and PRA‑designated investment firms. It will also be of interest to incoming branches of overseas relevant firms. As the obligations under the SM&CR apply to all staff that are subject to the conduct rules, the proposed rule changes will affect a large number of individuals within these firms.

Firms should continue to the use the pre-SM&CR versions of Forms C and D until 7 March 2016, after which they should only use the versions of the forms attached to this PS. We have also updated the versions of the forms where they appear in the regulators’ respective websites and rulebooks.

The full FCA statement as well as the Policy Statement can be found here.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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