The following Employment guidance note Produced in partnership with Gillian Maclellan, Partner of CMS provides comprehensive and up to date legal information covering:
The Senior Managers and Certification regime (SM&CR) came into force on 7 March 2016.
It replaced the Approved Persons Regime (APR) in relation to UK banks, building societies, credit unions and PRA-designated investment firms, as well as UK branches of non-UK firms. These firms are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) and compliance with the SM&CR is enforced by these bodies acting individually or jointly as appropriate (the regulator(s)).
The regime has three elements:
Senior Managers Regime (SMR)
Certification Regime (CR), and
The three elements cover different parts of a firm's workforce.
Also on 7 March 2016, the Senior Insurance Managers Regime (SIMR) replaced the APR in relation to all UK-incorporated firms who fall within the scope of Solvency II, Directive 2009/138/EC, including insurance and reinsurance firms.
The SM&CR was introduced following the Parliamentary Commission for Banking Standards’ 2013 report ‘Changing Banking for Good’. The regime is intended to ensure that individuals working in the sector exhibit high standards of conduct and are liable for any misconduct.
The SIMR replaced the APR in relation to all UK-incorporated firms who fall within the scope of Solvency II, Directive 2009/138/EC (the EU Directive that codifies and harmonises the EU insurance regulation) including insurance and reinsurance firms.
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