Coronavirus (COVID-19)—FCA offers SM&CR waivers for solo-regulated firms using temporary arrangements

Coronavirus (COVID-19)—FCA offers SM&CR waivers for solo-regulated firms using temporary arrangements

In light of the coronavirus (COVID-19) pandemic, the Financial Conduct Authority (FCA) has made a new modification by consent available to solo-regulated firms using temporary arrangements, extending the period in which an individual can cover for a senior manager without being approved. Solo-regulated firms can also allocate an absent senior manager’s prescribed responsibilities to the individual covering the role.

The modification by consent provides modifications to SUP 10C.3.13 and SYSC 24.1.2. Solo regulated firms can use this waiver if they think they may need to make or extend temporary arrangements to cover absences, as a result of the COVID-19 crisis. It extends the period in which an individual can cover for a senior manager without being approved (known as the '12-week rule' and detailed in SUP 10C.3.13) from a maximum of 12 weeks to a maximum of 36 weeks. It also allows firms to allocate an absent senior manager’s prescribed responsibilities to the individual covering the role (a modification to SYSC 24.1.2).

The FCA has also updated its expectations for solo-regulated firms regarding the senior managers and certification regime (SM&CR) and COVID-19 to reflect the fact that the modification by consent is now available.

Sources: Modification by consent: SUP 10C.3.13 and SYSC 24.1.2

Period to cover absent senior managers extended due to coronavirus (COVID-19)

Waivers and modifications by consent

Senior Managers and Certification Regime (SM&CR) and coronavirus (COVID-19): our expectations of solo-regulated firms

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