Networking News

SM&CR: Are your staff certified?

On 9th December, the new Senior Managers and Certification Regime (SM&CR) will be extended to include solo regulated firms, this includes Insurance Intermediaries. But what does this mean for brokers?

Do you have staff who fall under the regime?

The SM&CR regime applies to individuals whose job the FCA regards as having the potential to cause significant impact upon the firm, the financial markets or the customers of the firm.

How do you know if you have any members of staff who fall into this category? The FCA has listed eight certified functions for senior managers, but not all the functions will relate to brokers. There are only three that are likely to apply for general insurance intermediaries:

  • CASS Oversight
  • Significant Management Function
  • Supervisors and line managers of these roles.

If these do not apply to your firm, then you won’t have any certified staff and no requirement to apply the Certification Regime.

What do I need to do I have staff who fall into SM&CR?

Firms will need to create their own Certification Regime to ensure they are assessing Certified Function holders as being fit and proper and competent for their role.

Staff holding Certified Roles do not require FCA approval but will appear on the new Financial Services Directory.

Staff will need to know the Conduct Rules by 9th December 2019. For Broker Network Members, Conduct Rule training is available via our digital training platform LINK.

You will need to complete a certificate for your staff in a certified role, templates of which are available on the Networking Hub for Members.

Firms have 12 months from the commencement date or the SM&CR to complete the initial certification process.

Don’t forget, all certified individuals under SM&CR will need to be added to the FCA’s new Financial Services Directory. This will need to be completed by 9th December 2020 and can be done by filling out the relevant electronic forms, which will be available on the FCA’s Connect system.

If you’re not part of Broker Network and would let to find out more about Membership, please get in touch.


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