SM&CR—Statements of Responsibility (SoRs)

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

  • SM&CR—Statements of Responsibility (SoRs)
  • What is a Statement of Responsibilities?
  • Background: Barings and HBOS
  • The SOR regime
  • Extension of the SOR regime to all authorised firms
  • When is a Statement of Responsibilities needed?
  • What should a Statement of Responsibilities contain?
  • Senior Management Functions
  • Prescribed responsibilities
  • Overall or local responsibilities
  • More...

SM&CR—Statements of Responsibility (SoRs)

Banks, building societies, credit unions, PRA-regulated investment firms and insurers are required to file a Statement of Responsibilities (SOR) with the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) whenever they apply for approval for a person to perform a senior management function under the Senior Managers and Certification Regime (SM&CR). In addition, a revised SOR must be filed if there is a significant change in the responsibilities of a senior manager. From December 2019, the SM&CR was extended to FCA solo-regulated firms. This Practice Note summarises the SOR requirements, including the circumstances in which an SOR must be filed and the information it must contain. It also provides some practical points that firms and senior managers should consider before submitting an SOR.

What is a Statement of Responsibilities?

A Statement of Responsibilities is a statement filed with the FCA and PRA, summarising the role, prescribed responsibilities, overall or local responsibilities and other responsibilities of individually named Senior Management Function (SMF) Managers (SMF Managers) appointed under the SM&CR.

The Financial Services (Banking Reform) Act 2013 made several changes to the Financial Services and Markets Act 2000 (FSMA 2000). All references to FSMA 2000 in this Practice Note are as amended. In particular, Section 60(2A) of FSMA 2000 now requires firms applying for approval from the FCA or the PRA for a person to

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