On October 11, 2018, the FCA published a consultation paper on proposed guidance on the Statement of Responsibilities (SoR) and Responsibilities Maps required under the Senior Managers and Certification regimes. The extended SM&CR will apply to all firms authorized under FSMA and regulated by the FCA, as well as EEA and third-country (non-EEA) branches. SM&CR will be extended to FCA solo-regulated firms from December 9, 2019.
All Senior Managers must have an SoR which sets out his/her roles and responsibilities. Enhanced firms (those whose size, complexity and potential impact on customers warrant further requirements) must have a Responsibilities Map. Core firms and limited scope firms do not need to have a Responsibilities Map. The proposed guidance provides some examples of good and bad practices, questions for firms to ask themselves as they prepare their documents and example Responsibilities Maps.
The proposed guidance is intended to provide practical guidance to firms that are authorized and regulated by the FCA only—solo-regulated firms. However, the FCA suggests that dual-regulated firms that are also subject to prudential supervision by the PRA may find the guidance useful. The final guidance will be non-binding and any departure from it will not be presumed by the FCA to be a breach of the FCA's rules.
The consultation closes on December 10, 2018. The FCA intends to publish its feedback before the end of this year.
The consultation paper is available at: https://www.fca.org.uk/publication/guidance-consultation/gc18-04.pdf and details of the FCA's policy statements on rule changes resulting from the extension of the SM&CR are available at: https://finreg.shearman.com/uk-conduct-regulator-issues-near-final-rules-on-e.
