How does my firm change categories under SMCR?

Moving up’ to categorisation as an Enhanced Firm

Once a firm satisfies the enhanced criteria, the rules relating to enhanced firms will automatically apply to it after a one-year transitional period. 

In addition to automatic categorisation as an enhanced firm, firms can also choose to ‘opt-up’ to enhanced status if they wish.  Why might a firm wish to do this?  Well, it would allow the group of which the firm may be a member to apply a single standard across to all affiliated entities.

required for enhanced firms, it is generally regarded as a good practice for all firms to implement handover procedures.

‘Moving down’ from categorisation as an Enhanced Firm

If a firm ceases to satisfy the enhanced firm criteria then the enhanced regime will continue to apply to that firm for another year.  This is so as to provide continuity to the firm and to prevent firms from structuring their business in a way that effectively side-steps the rules relating to enhanced firms.

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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