Shearman & Sterling LLP | FinReg | UK's Expanded Senior Managers and Certification Regimes Enter into Force
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  • UK's Expanded Senior Managers and Certification Regimes Enter into Force

    The Bank of England and Financial Services Act 2016 (Commencement No. 6 and Transitional Provisions) Regulations 2019 have been made. The Regulations bring into force, from December 9, 2019, the expanded Senior Managers and Certification Regimes for all Financial Conduct Authority solo-regulated firms authorized under the Financial Services and Markets Act 2000, which include asset managers and investment firms carrying out certain activities. These firms need to complete their initial certification assessments for existing certified staff and new hires by December 9, 2020, although they must have identified certification staff by December 9, 2019. A transitional provision states that the regime will only apply to Claims Management Companies that are authorized by the FCA by December 9, 2019 and to other CMCs on the date that they obtain their authorization.

    The Regulations also apply the SM&CR to benchmark administrators from December 7, 2020. The delay to this extension is due to the EU Benchmark Regulation providing that benchmark administrators have until the end of 2019 to become authorized. Benchmark administrators must certify their certification staff by December 7, 2021. The FCA is expected to consult on SM&CR rules for benchmark administrators towards the end of this year.

    View the Regulations.

    You may like to see our client note, "The UK's Expanded Senior Managers and Certification Regime: Key Issues and Action Plan for Brokers, Advisers and Asset Managers."

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