Guest post by Daniel Tannenbaum
The SMCR, which stands for Senior Managers and Certification Regime, was introduced by the FCA in 2017 – as a new regulation that all 60,000 regulated firms and their 500,000 staff must adhere to.
The introduction of the regulation emerged from the 2008 financial crisis where billions were lost and many senior managers escaped punishment by hiding behind the size of their employers or large firms.
However, the new framework is designed to maximise accountability for senior managers working in investments or managing large sums or funds. Thus, the new lesligation mean that individuals can be held responsible for any losses to the regulator and to their clients.
The original SMCR deadline on December 2020 has since been extended to March 31 due to Covid-19, giving senior managers and their staff some extra time to get SMCR-ready.
The formal preparation can be completed through a compliance firm or through new e-Learning courses offered by SMCR Compliance. With a number of courses available for single, core and enhanced firms, courses are available from just £30.00 per course, per employee and lasting just 30 minutes.
The SMCR applies to all FCA-regulated firms including, but not limited to, credit unions, consumer credit companies, investment firms, banks, insurance providers and more.
A spokesperson from SMCR Compliance commented: “We are very excited to offer online SMCR courses which allow managers and their employees to stop, start, pick up, fast-forward and rewind at their convenience.”
“We offer a Q&A at the end, allowing users to consolidate their learnings and test their knowledge – and there is a CPD accredited certification available upon completion. If you complete the videos and pass the test, you are SMCR ready.”
FCA-regulated firms need to be SMCR compliant to continue operating and the majority of firms are yet to have all the necessary procedures and paperwork in place. There may be a rush towards the SMCR deadline and firms will need to act quickly to get everything compliantly into place.
