Which businesses does the SMCR apply to?

The SM&CR applies to all firms authorised under the Financial Services and Markets Act 2000 (“FSMA”).  It also applies to branches of non-UK firms which have permission to carry out regulated activities in the UK.  In total, the FCA estimates that approximately 47,000 firms are in-scope for the purposes of the SM&CR.

The Senior Managers and Certification Regime (the “SM&CR”) was extended in December 2019 to include solo-regulated firms. The FCA predicts around 47,000 firms will be impacted by the regime. In order to adhere to the regime firms must first establish which type of firm they are. To ensure the SMCR requirements are applied proportionally, the FCA introduced a firm classification system which is based on the size and complexity of a firm. The categories are as follows:

  1. Limited Scope
  2. Enhanced
  3. Core

Each of these terms are explored in more detail here.

Everything you wanted to know about SM&CR - but were afraid to ask!

New to SMCR – or need a hand getting up to speed withj SMCR compliance? This guide will help you understand and implement every part of the SM&CR. You’ll learn, amongst other things:

  • How firms are classified.
  • How to identify Certification Staff.
  • The Responsibilities of a Senior Manager.
  • Conduct Rules & how they apply to your role.

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