The UK Certification Regime
The UK Certification Regime

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

  • The UK Certification Regime
  • What is the Certification Regime?
  • Certification Regime—background and statutory framework
  • Certification Regime—rules and guidance
  • Certification Regime—application
  • Certification Regime—territorial scope
  • Certification Regime—fitness & propriety test
  • Issuing and renewing certificates
  • The Directory—a public register
  • Certification Regime—Banking Standards Board guidance

The Certification Regime (CR) is one component of the broader Senior Managers & Certification Regime (SM&CR), the Financial Conduct Authority’s (FCA) and Prudential Regulation Authority’s (PRA) framework for regulating individuals in the financial services sector. The CR is designed to strengthen individual accountability for key risk-taking employees who are not subject to the Senior Managers Regime (SMR). The CR requires businesses to satisfy themselves as to the fitness and propriety of staff who exercise ‘significant harm functions’ and to certify this annually. This Practice Note provides a detailed overview of the CR as it applies to SM&CR firms (both banking and insurance SM&CR firms). For insurers, the CR was one of the most significant changes from the previous separate regulatory regime for insurers, the Senior Insurance Managers Regime (SIMR) and revised Approved Persons Regime (APR).

For further information on SM&CR components, such as the Senior Managers Regime and the Conduct Rules, see Practice Note: Senior Managers and Certification Regime—essentials for SM&CR banking firms. Further information on the application of the Certification Regime to SM&CR insurance firms can be found in Practice Note: Application of the SM&CR to insurers. For information on the application of the SM&CR to FCA solo-regulated firms, see Practice Note: Senior Managers and Certification Regime—essentials for solo-regulated firms.

What is the Certification Regime?

On 7 March 2016,