Context
In its occasional consultation paper for October 2023 (CP22/23), the PRA proposes changes to Senior Managers and Certification Regime (SM&CR) Forms C and D related to the FCA’s new consumer duty rules.
Form C is used to notify the PRA and the FCA that a person has permanently ceased to perform a senior management function, including where the withdrawal of the approval includes a notification of disciplinary action related to conduct breaches. SM&CR Form D is used to notify the PRA and the FCA of changes to personal information, changes to information submitted on SM&CR Forms when approval was applied for, and details of conduct breaches or disciplinary action related to conduct.
Although this is an initiative proposed by the PRA, the changes may also result in changes to the forms for FCA solo regulated firms.
Key points to note
Following the introduction of the FCA’s consumer duty that sets higher and clearer standards of consumer protection across financial services and requires firms to put their customers’ needs first, the FCA made a new Individual Conduct rule, such that firms, and individuals subject to the Code of Conduct, must act to deliver good outcomes for retail customers (the Consumer Duty rule). The PRA proposes to add reference to this new rule to Forms C and D so that the Forms can be used to notify the PRA and the FCA of breaches of that rule.
Next actions
None – for information and awareness.