Statements of Responsibilities
Statements of Responsibilities

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

  • Statements of Responsibilities
  • What is a Statement of Responsibilities?
  • When is a Statement of Responsibilities needed?
  • What should a Statement of Responsibilities contain?
  • Revised Statements of Responsibilities
  • Record Retention
  • Practical points to consider before submitting a Statement of Responsibilities
  • Extension of the SM&CR to all authorised firms

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 Practice Note will be updated shortly to reflect these changes.

Banks, building societies, credit unions and PRA-regulated investment firms 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 2018, the SM&CR will be extended to insurers, and it is expected that the SM&CR will be extended to FCA solo-regulated firms in mid- to late 2019. 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 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