Regulatory references under the SM&CR
Produced in partnership with Marian Bloodworth, Amy Douthwaite and Sophia van Wingerden of Kemp Little LLP
Regulatory references under the SM&CR

The following Financial Services guidance note Produced in partnership with Marian Bloodworth, Amy Douthwaite and Sophia van Wingerden of Kemp Little LLP provides comprehensive and up to date legal information covering:

  • Regulatory references under the SM&CR
  • Background to the regulatory references regime
  • SM&CR and SIMR
  • FCA conduct rules
  • Regulatory references
  • Regulatory references: FCA and PRA rules
  • Obtaining regulatory references
  • Who must obtain references?
  • From whom must references be obtained?
  • Modifications by consent for transfers as part of a ring-fencing transfer scheme
  • more

STOP PRESS: The Senior Managers and Certification Regime (SM&CR) was extended to insurers regulated by the FCA and PRA from 10 December 2018, replacing the Senior Insurance Managers Regime (SIMR). This Precedent will be updated shortly to reflect these changes.

As of 7 March 2017, bank and insurers are required to obtain regulatory references when appointing individuals to roles that are subject to the Senior Managers and Certification Regime (SM&CR) or the Senior Insurance Managers Regime (SIMR). Banks, insurers and other authorised firms are also required to provide references upon request, including prescribed information, and to update references when necessary. From December 2018, the SM&CR will be extended to insurers, and the SM&CR will be extended to FCA solo-regulated firms in December 2019. This Practice Note examines the rules of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) related to regulatory references, which form an integral part of the SM&CR and SIMR, as well as their plans to extend the regime to all authorised firms.

Background to the regulatory references regime

In the wake of financial crises that raised concerns about the accountability of individuals working within the banking and financial sector, criticism was levelled at the regulation of these individuals under the approved persons regime (APR). In sum, this regime provides that persons may not perform