FCA issues SM&CR reminder to firms

The FCA has already rolled out the SM&CR to banks and insurance firms, and is extending the regime to the 47,000 firms it regulates.

The aim of the SM&CR, the regulator says, is to 'establish healthy cultures and effective governance in firms by encouraging greater individual accountability and establishing a new standard of personal conduct'. 

Under the regime, all Senior Managers must have a Statement of Responsibility, while larger and more complicated firms are must also have Responsibility Maps showing how the responsibilities of their senior managers fit together. The FCA published guidance in March to give firms practical assistance and information on preparing SoRs and Responsibilities Maps, and firms are urged to complete them as soon as possible.

With the introduction of the SM&CR, the FCA is seeking to encourage a culture where all financial services staff embrace the new five conduct rules: act with integrity; act with due care, skill and diligence; be open and cooperative with the FCA; pay due regard to the interests of customers and treat them fairly; and observe proper standards of market conduct.

Jonathan Davidson, Executive Director of Supervision - Retail and Authorisations at the FCA, said:

“Senior leaders should view the regime as a catalyst to inspire positive culture change at their firms. The SM&CR is an important way to ensure that individuals at all levels within firms take personal responsibility for their actions."

"It is good for business when employees buy into a firm’s purpose, feel personal accountability and are inspired to speak up (and to listen). This can be encouraged through the new conduct rules. This kind of culture supports a healthy and inclusive workplace for employees, innovation and sustainability, and thoughtful identification and mitigation of risk.”