Q&As

Is there an obligation under the Senior Managers and Certification Regime (SM&CR) for senior managers to undergo either standard or enhanced criminal records or DBS checks?

read titleRead full title
Published on LexisPSL on 11/06/2019

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • Is there an obligation under the Senior Managers and Certification Regime (SM&CR) for senior managers to undergo either standard or enhanced criminal records or DBS checks?

As set out in Practice Note: SM&CR—essentials for banks and PRA-designated investment firms, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) require firms to check that candidates for senior manager functions and non-executive directors (NEDs) (where a fitness requirement applies) are fit and proper to perform their roles. Firms must disclose any information about the candidate’s fitness and propriety in the candidate’s application for regulatory approval. As part of checking candidates are fit and proper, firms must conduct criminal record checks on candidates for senior manager functions and NEDs (where a fitness requirement applies). Technically, criminal checks are not required for those carrying out certified regime roles. However, it would nevertheless be good practice to carry these out and most firms do so at appointment stage and thereafter on a semi-regular basis (see Practice Note: The Senior Managers and Certification Regime: key issues for employment lawyers).

As detailed below, senior managers must undergo standard disclosure and barring service (DBS) checks (or equivalent in Scotland or Northern Ireland).

FIT 2.1 of the FCA Handbook, sets out the matters the FCA will have regard to in determining a person’s honesty, integrity and reputation. FIT 2.1.3G states that an SM&CR firm should have regard to matters in

Related documents:

Popular documents