TECHNICAL TALK
WHAT ’ S ON THE REGULATORY HORIZON ?
Mark Greenwood Director of Compliance Services SimplyBiz
As we get to grips with the new year , Director of Compliance Services , Mark Greenwood , gives us the lowdown on how to keep up with changing regulation in 2022 , and what it means for you and your clients .
2021 delivered so many twists and turns that nobody could have guessed what lay ahead of us at this time last year . However , one area that I did predict correctly was that we ’ d see more regulation and , in that way at least , 2021 did not disappoint . However , rather than looking back at 2021 , I ’ m going to use this article to focus on regulation and changes on the horizon for 2022 , and what I believe should be on the radar for advisers this year .
SM & CR – the next chapter I will start with the Senior Managers and Certification Regime ( SM & CR ) as we are now over two years into this regime , and we are starting to see the regulator focussing on whether firms have embedded the requirements of this regime into their business . A key requirement of SM & CR is for firms to gather evidence to demonstrate that their senior managers and certified persons are fit and proper for their role ; and that they meet the requirements of honesty , integrity and reputation , financial soundness and competence and capability . A FIT assessment for certified persons and senior managers needs to be undertaken on at least an annual basis . Once a firm is satisfied that their certified person ( s ) is fit and proper , they must be issued with a certificate . The certificate will confirm the person is fit and proper to undertake the role ( s ) specified within it and should be valid for a period of no longer than 12 months .
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Focus on the Directory Another area in which we are seeing regulatory focus is the Directory , and we expect this to continue throughout 2022 . There are ongoing requirements for firms when it comes to the Directory ; namely , any time a Directory person leaves or joins your firm , or their details change , the Directory needs to be updated . Failure to do so will result in a £ 250 administration fee from the FCA . Another requirement is for firms to attest the accuracy of their Directory information within a 12-month period and , again , failure to do so will result in a £ 250 fee from the FCA .
Our Director of Compliance Policy , Richard Nuttall , and I ran a Compliance Clinic titled ‘ Your SM & CR Health Check ’ last July in which we covered a firm ’ s ongoing SM & CR and Directory requirements . If you did not get the chance to watch the Clinic live , you can access the full recording of the session in the ‘ Compliance Clinics ’ area of our website . If you do not have the appetite to watch myself and Richard for an hour – and I understand that is an acquired taste – then I would recommend you visit our SM & CR hub and download our ‘ SM & CR : Your Annual Review Guide ’.