The Final Countdown to Senior Managers and Certificate Regime (SM&CR)

Are you and your firm ready for the Senior Managers and Certification Regime?  

The SM&CR is a catalyst for change.  Its aim is to reduce harm to consumers and strengthen market integrity by encouraging greater individual accountability for conduct and competence and setting a new standard of personal conduct.   

The purpose of the SM&CR is to establish healthy cultures and effective governance in almost every solo-regulated firm, from very small firms (including sole traders and limited permission consumer credit firms) to some of the largest global firms. It also applies to branches of non-UK firms with permission to carry out regulated activities. 

Submit now! 

SM&CR (the Regime) comes into full force on 31 March 2021. You will need to have certified all relevant staff and delivered Conduct Rules training to all those who haven’t yet received it. Don’t delay and  wait until the deadline of 31 March. Acting now will ensure there is enough time to ask questions and make sure the data you submit is correct.  

You must submit your Directory Persons data, via Connect, by 31 March 2021 but if you are able to do so, submit sooner and we will incrementally display data as we receive it. 

It is also important that you don’t wait until 31March to remove staff who are not fit and proper from certified roles. 

If you are unsure whether you or your firm are affected or what steps you need to take now, there is further detail on our website, including a user guide for firms and a SM&CR podcast.  

The Woolard Review

We have published a review of change and innovation in the unsecured credit market, led by Christopher Woolard CBE, our former interim Chief Executive.    

The Review sets out Chris’s findings and recommendations to make the market work well for consumers.     

Key recommendations include:   

• Unregulated buy-now-pay-later products should be brought under FCA regulation as a matter of urgency. 
• The expected expansion of demand for free debt advice means that the sector needs a long-term, fair funding settlement, and the market for individual voluntary arrangements (IVAs) needs to be fixed.   
• The FCA’s emergency response to the pandemic was quick and effective – it needs to sustain its response through the recovery and look at what elements of its approach should be retained.   
• The market still needs more alternatives to high-cost credit – the regulatory landscape for credit unions and CDFIs should be reformed, mainstream lenders should be encouraged to do more, and we need to better understand links between social policy and demand for high-cost credit.   
• A better credit information market could bring significant benefits and the FCA should complete its Credit Information Market Study.   
• Regulation of consumer credit needs to be focused on how products are used in the real world and what outcomes they deliver for consumers, looking at conduct through the lifetime of the product.   

The FCA supports the Review’s recommendations that are directed to the FCA, which we will build into our business planning ahead of publication of our Business Plan.  

We have published a multi-firm review that looks at how firms implement technology change, the challenges caused when changes fail, and steps firms can take to protect consumers from harm and disruption in the market. Firms should consider the findings when assessing their future technology changes. 

The report highlights that changes made by firms with strong governance and risk management strategies are more successful. Robust testing is an important part of the change process and while testing automation has benefits it also presents challenges. Also, pairing subject matter expertise with a clear understanding of a firm’s strategy is vital. 

Have you read the latest update on the Financial Services Compensation Scheme (FSCS) levy? FSCS recently published its Plan and Budget 2021/22, which confirms the 2020/21 supplementary levy and forecasts the 2021/22 compensation costs and levy. It also sets out FSCS’s recommendations on how the industry needs to come together to tackle the rising levy and explains the steps FSCS is already taking to reduce it.  

We and the PRA are also consulting until 19 February on proposals for the annual FSCS Management Expenses Levy Limit for 2021/22. 

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

Due to the coronavirus pandemic a number of services, such as events, holiday accommodation or flights have been cancelled. It is important that consumers in these circumstances are aware of and understand their rights and options for a refund. 

We are proposing to extend our temporary guidance to help reduce the frustration and inconvenience being experienced by consumers trying to get a refund due to the ongoing impact of the pandemic. We are requesting comments on this by Friday 26 February. 

We updated that, due to the challenges faced by firms and their auditors preparing audited financial statements during the coronavirus pandemic, we will allow flexibility in the submission deadline for FIN-A (annual report and accounts). For this return only, firms may apply a 2 month extension to the deadline for submissions due up to and including 31 July 2021.i 

 If firms are able to submit FIN-A on time, then they should do so. In any event firms should submit it as soon as they are reasonably able to and no later than 30 September 2021.

In January, we published a statement asking firms to consider whether they should delay both already announced or planned permanent branch closures during lockdown. The statement sets out our expectations, particularly for vulnerable or hard to reach customers, and builds on our existing guidance.  

In September 2020, we published guidance on branch closures and ATM closures and conversions. The guidance supports our consumer protection objective and is designed to protect consumers by setting expectation that firms should assess customer (consumer and SME or micro-enterprise) needs and consider the availability and provision of alternative arrangements where closures or conversions are planned. 

Edwin Schooling Latter, Director of Markets and Wholesale Policy recently delivered a speech at the City & Financials’ managing LIBOR transition event.  

Key messages include: 

• IBA’s consultation on proposed end-dates for LIBOR has now closed, opening the way to determining the future path for all 5 LIBOR currencies. 
• Market participants should expect consultation proposalss in the spring, on a framework for using some of the new Benchmark-Regulation powers proposed under the Financial Services Bill.  
• Users of LIBOR should press ahead with transition plans – in their new business and their legacy LIBOR books. 

The RFRWG has published an update to its priorities and roadmap.  

The RFRWG has recommended that, from end-Q1, sterling LIBOR is no longer used in any new lending or other cash products that mature after the end of 2021. It has published further materials to support the loan market in meeting this milestone, which we encourage firms to consider.  

The RFRWG has also recommended that firms no longer initiate new linear derivatives linked to sterling LIBOR after end-Q1 2021, other than for risk management of existing positions or where they mature before the end of 2021. We and Bank of England support these targets and stress the importance of ensuring users are prepared well in advance of the end of 2021 to ensure a smooth transition. 

We have published a consultation  on planned updates to our approach to regulating payments services and e-money firms as well as changes to support innovation and competition in the sector.  

In response to the ongoing  pandemic, the consultation includes proposed changes to the contactless payment limit to ensure regulation keeps pace with consumer and merchant expectations. 

Firms should read and respond to the consultation. The deadline for responses are: 

• For questions relating to contactless payments (Q5 & Q6) - 24 February 2021  
• For all other aspects of the consultation - 30 April 2021 

We have published our Retail Banking portfolio letter, which notes the pandemic’s effects and potential challenges to banks’ business models and customers over the next 2 years. As banks adjust, we expect them to act in a customer-centric way and manage conduct risks, including by ensuring: 

• fair treatment of borrowers in Covid-19 related financial difficulties   
• good oversight of customer treatment and outcomes during business changes 
• operational resilience during technological changes 
• investment in stronger controls against financial crime 

Our supervision will focus on these areas. Banks’ boards should be ready to demonstrate how they mitigate relevant risks.

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

The British Insurance Brokers’ Association (BIBA) has launched a travel insurance directory for people with serious pre-existing medical conditions. It meets our Medical Cover Firm Directory criteria.   

BIBA’s directory launch follows our update in October 2020 when we confirmed the Money and Pensions Service launched a travel insurance directory which meets our criteria. 

Going forward, all firms offering retail travel insurance must include details of at least one of the confirmed directories on their websites, in accordance with requirements in ICOBS 6A.4.3R. This will ensure consumers have access to the directories, ahead of the introduction of the signposting requirement on 26 April 2021. 

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

On 8-10 of February, firms taking part in the Digital Sandbox Pilot presented their prototype solutions at a series of demo days hosted by the FCA. These innovative solutions focused on 3 topics:  

• preventing fraud and scams 
• supporting vulnerable consumers 
•  improving access to finance for SMEs 

Each team had 6 minutes to present their solution, and the recordings of these presentations are now publicly available.

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

We have published a consultation  on planned updates to our approach to regulating payments services and e-money firms as well as changes to support innovation and competition in the sector.  

In response to the ongoing  pandemic, the consultation includes proposed changes to the contactless payment limit to ensure regulation keeps pace with consumer and merchant expectations. 

Firms should read and respond to the consultation. The deadline for responses are: 

• For questions relating to contactless payments (Q5 & Q6) - 24 February 2021  
• For all other aspects of the consultation - 30 April 2021 

Checking you’ve registered for RegData ahead of your move 

50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting. 

Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible. 

To check you've registered, log in to Gabriel using your Gabriel login credentials. 

If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action. 

If you are prompted to register, follow these steps. 

We have published our approach to international firms, where we set out how we assess international firms when they apply for authorisation.  

In it we set out some of the factors we will consider when we assess whether international firms meet our minimum standards when they apply for authorisation and as an authorised firm. 

We also set out the circumstances when international firms could present higher risks of harm and how those risks can be mitigated. 

The document should help international firms understand our expectations and how to manage risks appropriately when providing regulated financial services in the UK.