The FCA and PRA will overhaul the Senior Managers and Certification Regime (SM&CR) to cut the regulatory burden and cost for firms.The FCA said the changes will not water down the “core principle of senior leader accountability”.
Among the tweaks will be reduced annual checks that certified individuals are ‘fit and proper’.
The changes will also extend the time that criminal record checks for senior managers remain valid.
The overhaul will include giving firms more time to file senior manager applications in cases of temporary or unexpected changes.
The changes will also scrap the need to certify managers with several overlapping roles.
The FCA said this would cut the overall number of certification roles needed by around 15%.
Only the largest and most complex companies will need to meet enhanced standards.
The FCA and PRA could go further with streamlining the SM&CR, and will consult on this.
FCA deputy chief executive Sarah Pritchard said: “These joint reforms will keep consumers and markets protected while making the regime more proportionate. We’ve also used our current powers to streamline the regime now, so firms can benefit before future legislation unlocks even more efficiencies.”
