May 2019
EDITION

VIEW ONLINE
SUBSCRIBE

Register with PP

Newsletter, Jobs & Event Alerts

Latest

SM&CR is a problem looming larger

16 April 2019

As the introduction of the Senior Management and Certification Regime (SM&CR) looms closer, a number of advisers still remain a long way from becoming compliant, a new survey has found. 

While almost two thirds (62%) of advisers are well on their way to meeting the requirements before the December deadline, nearly a quarter (23%) are yet to start the journey to becoming compliant and 15% are unaware what it means, the findings from Intelliflo have shown.

The new regime involves extensive new obligations for advisers and wealth managers, designed to “reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence,” according to the FCA.

As part of this, the SM&CR aims to encourage staff to take personal responsibility for their actions, improve conduct at all levels and make sure firms and staff clearly understand and can show who does what.

Nick Eatock, executive chairman, Intelliflo, said: “One of the key elements for firms to consider under the SM&CR is their relationships with third parties, particularly providers who are integral to the running of their business. Due diligence with providers – and the ability to show clear records of this – will be even more important once the regime comes into force so using firms that can facilitate this will save advisers valuable time.”

Eatock said that as with the introduction of the GDPR in 2018, there is plenty for firms to do to ensure they are compliant.

He added: “Even if advisers are confident that they are doing everything right, the ability to evidence this will be vital should the regulator come knocking on their doors.”