This is the sixth instalment in our SM&CR case study series, designed to help you prepare for the implementation of the FCA’s Senior Managers & Certification Regime (SM&CR). This series follows fictitious firm Smith & Cromer Limited’s project to implement the Regime with the process and tips being released to you throughout the year.
- Read the first five instalments?
- Watched our one-minute explainer video – SM&CR in a Nutshell?
If not, visit the dedicated SM&CR website homepage to access these resources.
If you are up to date, read on...
About our case study firm
Smith & Cromer Limited is a fictional solo-regulated firm active in the wholesale markets with 25 staff in total, including 20 approved persons. There are five executive directors and two non-executives. All but one of the executive directors also perform the customer function under the Approved Persons Regime. The compliance function and the MLRO function are both performed by Sam Carr, who is not a director of the firm.
Sam is steering the SM&CR project and has already identified the senior managers and certification staff, considered the documentation updates that will be necessary for the SM&CR to be implemented, assessed the fitness and propriety of the senior managers who will be taking on the senior manager functions and devised a training plan for the senior managers to address any shortcomings. Now Sam is considering how the firm will perform the fitness and propriety assessments for its certification staff after the commencement of the Regime on 9th December.
The requirements in relation to the certification staff
It was back in Issue 2 that the certification staff were identified. This was straightforward for Sam. The certification staff will be the 20 persons that are currently approved to perform the customer function and the single non-executive that is not a senior manager. Additionally, the four executive directors that are currently approved as CF30s also need to be certified as fit and proper for their customer-facing role in addition to being approved by the FCA as senior managers.
The FCA requirement for certification staff is that an assessment is undertaken by the firm to consider whether each individual:
- Has obtained a qualification
- Has undergone, or is undergoing, training
- Possesses a level of competence or
- Has the personal characteristics
Sufficient for the firm to be satisfied that the person is fit and proper to perform the function to which the certificate relates.
Download this instalment of our SM&CR case study series to see the steps Sam has taken and key takeaways from this stage in the SM&CR Implementation Plan...
If you have any questions about this case study or if you are looking for support with preparing your own firm for the SM&CR contact us now.