Financial services and banking: employment issues

This Overview considers the employment issues that typically affect those operating in the financial services and banking sectors.

Senior Managers and Certification Regime (SM&CR)

Following the Parliamentary Commission on Banking Standards’ (PCBS) recommendations to implement a new framework for approving and holding certain individuals who work in the banking sector to account, the Financial Services (Banking Reform) Act 2013 (FS(BR)A 2013) amended the Financial Services and Markets Act 2000 (FSMA 2000) to include:

  1. a ‘Senior Managers Regime’ (SMR) for individuals performing a senior management function

  2. a ‘Certification Regime’ which requires relevant firms to assess the fitness and propriety of certain employees, and

  3. a set of Conduct Rules that apply to persons in the scope of the SMR and Certification Regime

On 7 March 2016, the Senior Managers and Certification Regime (SM&CR) replaced the Approved Persons Regime (APER) as applied by both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in relation to UK banks, building societies, credit unions and PRA-designated investment firms, and the Senior Insurance Managers Regime (SIMR) replaced APER as applied

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Detailed list of Home Office’s Sponsor Guidance changes of 6 March 2026

Immigration analysis: On 6 March 2026, the Home Office issued new versions of each of the three principal Worker and Temporary Worker Sponsor Guidance documents, as well as of other Sponsor Guidance documents including Appendix D (on retaining documents) and the Sponsor a Skilled Worker guidance. We have set out below a detailed list of all of the substantive changes, as well as other wording changes which the Home Office appears to have made to focus sponsors’ minds on recent operational concerns, in light of the current significant increase in compliance checks and enforcement (eg around salary underpayment). One important change is the replacement of the ‘genuine vacancy’ concept with the newly defined term ‘eligible role’, now contained in a new standalone glossary document. The new four-limbed definition embeds skill, salary and route requirements, compliance with wider employment law, and proportionality to the sponsor’s business model into a continuing test that must be met throughout sponsorship. Other operational-related changes include around illegal working requirements, and reinforcing the importance of Certificate of Sponsorship details matching the work actually undertaken (or reporting permitted changes). The wording around the standard of proof for the enforcement threshold in some cases has also been amended to ‘reasonable suspicion’, presumably as an attempt to expand the Home Office’s discretion to refuse, suspend or revoke licences. Other suitability/compliance amendments relate to concerns about dishonesty, salary inflation or risks to the integrity of the sponsorship system. At the same time, the guidance emphasises that participation in the sponsorship scheme (now formally termed a ‘scheme’) is voluntary and that a licence is granted and held at the Home Office’s discretion. There is also an increased focus on worker welfare and compliance with wider UK law, including a new requirement to inform sponsored workers of their employment rights and retain evidence of having done so. It had been anticipated that further guidance would be included on when and how employers are permitted to ‘claw back’ some immigration costs in circumstances where a sponsored worker leaves their employment early, but there were no more changes made on this aspect in the new guidance.

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