SM&CR—essentials for solo-regulated firms
SM&CR—essentials for solo-regulated firms

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • SM&CR—essentials for solo-regulated firms
  • What is the SM&CR?
  • SM&CR statutory framework, rules and guidance for solo-regulated firms
  • Statutory Framework
  • Rules and guidance
  • Consultation Papers, Policy Statements, Finalised Guidance
  • Further FCA publications
  • Categorising solo-regulated firms: Enhanced, Core, Limited Scope
  • Core SM&CR firms
  • Senior Managers Regime (SMR) for Core firms
  • More...

SM&CR—essentials for solo-regulated firms

On 9 December 2019 (Commencement), the Senior Managers and Certification Regime (SM&CR) was extended to firms authorised under the Financial Services and Markets Act 2000 (FSMA 2000) and regulated by the FCA and not the PRA (‘solo-regulated firms’, also referred to as ‘FCA—only firms’). After this date, the SM&CR replaced the Approved Persons Regime (APR) for nearly all solo-regulated firms.

This Practice Note considers the statutory framework, rules and guidance for solo-regulated firms, and provides a detailed overview of the application of the SM&CR to solo-regulated firms based on their classification as Limited Scope, Core or Enhanced firms; in addition, it sets out the impact of Brexit and the rules applicable to Overseas SM&CR firms and EEA SM&CR firms. This Practice Note should be read in conjunction with SM&CR Compliance—Checklist, which sets out practical steps to ensure compliance with the SM&CR.

Although the FCA’s rules for solo-regulated firms apply to claims management companies (CMCs), due to sector-specific considerations, readers are advised to also refer to Practice Note: SM&CR—essentials for claims management companies.

Sector-specific considerations also apply to benchmark administrators that are authorised in the UK and that do not undertake any other regulated activities. Benchmark administrators remained subject to the APR until 7 December 2020—an additional year following the SM&CR’s extension to other solo-regulated firms. The Certification Regime does not apply to benchmark

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