FCA Raises The Bar For Senior Management Applications
What Firms Need to Know to Stay Compliant
The Financial Conduct Authority (FCA) has issued new guidance aimed at improving the quality and consistency of Senior Management Function (SMF) applications across the financial services sector. The guidance, which was published on March 12, is relevant for investment management firms seeking to strengthen governance and meet regulatory expectations under the Senior Managers and Certification Regime (SMCR).
As part of the guidance, the FCA provided case study scenarios that highlights the importance of due diligence during the recruitment process and sets out its expectations for the fitness and propriety of candidates.
Key areas of concern include:
- Integrity and financial soundness of candidates
- Potential conflicts or capacity concerns when holding multiple roles
- Evidencing a rigorous and well-documented recruitment process
Firms must be diligent in recognising red flags, since overlooking potential concerns or submitting incomplete applications can lead to delays or rejection. Using employee compliance software, like StarCompliance’s (Star) SaaS-based products and services, can help ensure nothing is missed.
While the FCA has also published a broader feedback statement on potential future changes to training and competence requirements, the details are not yet defined enough to act on. For now, firms should prioritise areas where expectations are already shifting. As more clarity emerges, Star will continue to provide timely insights and guidance to help firms stay ahead.
“At Star, we’re committed to delivering solutions that not only help firms meet today’s regulatory obligations but also adapt with confidence as expectations evolve. As employee regulatory requirements grow more complex, Star’s technology ensures firms stay fully integrated and in control, now and in the future.” – Andy Atkinson, Director of Product Management
Supporting SMCR Compliance with Confidence
Star supports firms in navigating SMCR requirements with purpose-built tools that simplify the management of senior manager documentation and accountability mapping. With regional solutions tailored to individual accountability regimes across the UK, Ireland, Singapore, and Australia, with global integration capabilities for multinational organisations, Star’s platform streamlines screening, strengthens accountability processes and improves the quality and consistency of submissions.
Star’s platform helps organisations:
- Establish and maintain a Senior Manager Regime to track responsibilities across the organisation
- Gain control of fitness & propriety workflows for Senior Managers and Certification employees
- Manage and streamline the Senior Manager FCA Application process with evidence gathering
- Manage conduct rules attestation, fostering a culture built on respect
To learn more about Star’s SMCR solution, click [HERE]
Riding the Regulatory Wave
