The feedback published by the FCA last week to CP19/4 will be valuable to firms trying to identify their Senior Manager and Certification population in the run-up to 9 December 2019 implementation.
Key clarifications on this topic are:
1. The Head of Legal isn't required to be a Senior Manager (although the Head of Legal - or the person to whom they report - is likely to be a Certified Person if not a Senior Manager).
2. On the client dealing certification function, firms can use their judgement to exclude individuals whose role is largely automated and/or involves no exercise of discretion or judgement.
3. For firms where Systems & Controls Senior Management functions will not apply (e.g. core and limited scope solo-regulated firms), individuals carrying out such roles (former CF28) would be included in the "Significant Management" Certification function.
The FCA also amended the intermediary revenue criteria for the purposes of assessing whether a firm falls within the "Enhanced" regime, and extended Senior Manager Conduct Rule 4 (SC4) to non-approved Executive Directors at Limited Scope firms.
Please note this blog post was written by a Clifford Chance LLP employee. Clifford Chance LLP is the parent company of Clifford Chance Applied Solutions (CCAS). The content within this post does not constitute legal advice.
we publish final rules on the extension of the Senior Managers and Certification Regime (SM&CR) to FCA solo-regulated firms, including claims management companies.