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Next steps for solo-regulated firms

Solo-regulated firms, the SMCR Next Steps and the Financial Services Register and Directory

The SMCR is now switched on for solo regulated firms. And it comes with two new regulatory obligations – to:

  • Check the Financial Services Register has been correctly updated, and report any inaccuracies to the FCA by 16 January 2020; and
  • Prepare and submit reports on “Directory Persons” to the FCA by 9 December 2020 – a task that sounds as if it can safely be left for later, but will only get (much) worse, if it is. This is best done via the “multiple entries template”.

Financial Services Register

The FCA’s new rules require firms to check the Financial Services Register, to make sure that:

  • Every relevant pre-existing controlled function approval has been converted into the corresponding senior management function approval;
  • (Where applicable) the right individual(s) have been approved, and now appear on the Register as the chair of the governing body; and (where relevant) the chairs of the risk, audit, remuneration and nomination committees; and
  • Any unnecessary approvals have been switched off – for example, the customer function (CF30) and (in many cases) the non-executive director function (CF2) no longer apply.

The Directory

The FCA’s new rules require firms to prepare and submit reports on Directory persons. This is best done via a “multiple entries template” (available here) which gives some reasonably detailed information about every Certification Employee and non-SMF director:

  • in post on 9 December 2019; and
  • who joins and/or leaves between 9 December 2019 and 9 December 2020.

This template must be submitted to the FCA by December 2020 - a task that will require so much information (even for smaller firms) that the best course will usually be to start early, and keep the form up to date throughout the year, because preparing and submitting an accurate report in the last few weeks will be challenging (to say the least!)

The FCA will use this information to populate its new Directory in December 2020.

Who should I contact?

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Peter Wright
Partner
Direct dial: +44 (0)7738 122 614
pwright@foxwilliams.com

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Chris Finney
Partner
Direct dial: +44 (0)7469 083 565
cfinney@foxwilliams.com

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Joanna Chatterton
Partner
Direct dial: +44 (0)7740 945 716
jkchatterton@foxwilliams.com


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