| Link(s): | practitioner_panel_response_to_smcr_fca.pdf (fca-pp.org.uk) practitioner_panel_response_to_smcr_hmt.pdf (fca-pp.org.uk) |
Context
The FCA Practitioner Panel has provided responses to the call for evidence from HM Treasury and the subsequent FCA Discussion Paper, offering its perspective on the overall functioning of the SM&CR.
Key points to note
The Panel’s key observation is that the SM&CR has achieved good outcomes and is broadly fit for purpose. They also note that the objectives of SM&CR remain relevant, the regime supports UK competitiveness, and is critical to the safety and credibility of UK financial services.
However, it noted that there is an opportunity to make some adjustments to improve proportionality whilst maintaining the core objectives. Targeted adjustments to the regime that would make it more effective and efficient include:
- A number of inefficient processes and a lack of clear guidance and communication. For firms, this results in delays in approvals, increases in costs and delays in implementing change to the benefit of customers.
- The senior manager regime has improved clarity of accountabilities but would benefit from streamlined application processes and systems, increased engagement with firms and consistency of guidance.
- There is opportunity to review and refine the certified functions, remove overlap with other regulation and understand the value of the Financial Services Register information to customers.
- With respect to the conduct rules, whilst these are useful in supporting minimum standards of behaviour across the industry, further guidance and examples of breaches, particularly in respect of non-financial misconduct, would ensure consistency.
Next actions
None – for information and awareness.