Senior Manager's Regime - Next Steps

8/9/2019 Senior Manager's Regime - Next Steps

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Senior Managers

RegimeUK BANKING


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Senior Manager

Steps

http://photopin.com


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Senior Man

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Why Change the APER Regim There has !een ins"#$ient or meaning%ess

ser'i$e to persona% responsi!i%ity This has $reate( an i%%"sion o) reg"%atory $

The a!i%ity )or some peop%e to $%aim *N"re+e)en$e, o) *I -as on%y )o%%o-ing or(ers

Some -ere hi(ing !ehin( !oar(.$o%%e$ti'e

(e$ision&making Reg"%ators )o"n( it "nrea%isti$ to impose /pena%ties or san$tions

The in(i'i("a% in$enti'es -ere not $onsiste-ith high stan(ar(s0


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What 1irms Are A2e$te(

The 1CA an( the PRA are proposing that thne- Senior Managers an( Certi/$ation Reg-i%% app%y on%y to in(i'i("a%s -orking in UK!anks3 !"i%(ing so$ieties3 $re(it "nions an((esignate( in'estment /rms 4re)erre( to aRe%e'ant 1irms50

At present3 the proposa%s set o"t !y the 1Cthe PRA in the Cons"%tation Paper (o notgenera%%y app%y to the UK !ran$hes o) /rmsare hea(6"artere( o'erseas0


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Senior Man

StWhat Is Changing

The PRA and the FCA are jointly approa

the changes in providing; Senior Management Fnction descript

Responsi!ilities maps " #ndividalResponsi!ility Statements

Certi$cation Scheme %or &ey responsinot nder the SMR

'e( Condct Rles to replace the AP)Code o% Condct


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Senior Manager

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The Parliamentary Commission on *an&ing Standards +PC*S, maderecommendations in -ne 01

Re$ommen(ation Key points

'e( regime %or individals Senior persons regime#ndividal statements o%responsi!ilitiesResponsi!ilities mapCode o% practice +condct rles,

#ncentives %or !etter !ehavior #ncentives / disincentives to re2ec

long3term ris& and re(ard

'e( en%orcement approach Reverse !rden o% proo% Potential %or criminal prosection


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Senior Manager

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There)ore

PRA Senior Management Fnctions +SMFs,

4Prescribed list of responsibilities that equate to SMF

FCA Senior Management Fnctions +SMFs,

4Prescribed list of key functions that equate to SMF

Com!ined list o% SMFs are !roader than the corresponding S#F %nct

PRA and FCA SMF regime to (or& jointly as a single cohesive regim

)5isting S#Fs grand%athered provided that the role remains the sam


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Senior Manager

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The 6ist o% SMFs

#nclde;


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The Se$on( Se$tion is


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Senior Manager

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Gran()athering7rand%athering (ill only apply %or the Controlled

Fnctions and corresponding Senior ManagemenFnctions listed in the previos ta!le. For all othControlled Fnctions8 prior reglatory approval (longer !e re9ired and e5isting approvals (ill la(hen the ne( regime !egins.

Sch individals may !ecome part o% the PRA anFCA Certi$cation Regimes


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Certi/$ation RegimeFirms (ill need to certi%y at least annally8 that

employees per%orming Certi$cation Fnctions arand proper8 regardless o% (hether they (ereper%orming the role !e%ore the Certi$cation Regicoming into %orce8 or (ere approved !y the PRA to per%orm a similar role nder the Approved Per

Regime.The dierent reglators (ill !e %ocssing on thespeci$c o!jectives !t eectively the certi$catioaect those the

S i M


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Senior Manager

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The Certi/$ation regimePRA

4)"n$tions that might in'o%'e a risk to the 9sa)ety an( so"n(nesre%e'ant /rm

1CA

4SI1 )"n$tions -ho are not an SM1

4 In(i'i("a%s in $"stomer&)a$ing ro%es that are s"!:e$t to 6"a%i/$re6"irements

4Anyone -ho s"per'ises or manages a $erti/e( person0

No reg"%atory appro'a% ; the on"s -i%% !e on /rms to po%i$e an( *that in(i'i("a%s are 9/t an( proper

Reg"%ators -i%% assess e2e$ti'eness o) ea$h /rms *Certi/$ation

S i M


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Senior Manager

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o(ethere are some &ey dierences !et(een AP)R and tCondct Rles.

The ne( Condct Rles are split into t(o sections: t

section o% the Condct Rles +re%erred to as the ?$rsapplies to all employees (ho are s!ject to the ConRles8 the second section o% the Condct Rles +re%eas the ?second tier@, only applies to individals %allin(ithin the FCA and the PRA Senior Managers Regim

S i M


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Senior Manager

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'e( Code o% Condct %or SMFs Tier 0

S i M


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Senior Manager

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'e( Code o% Condct %or SMFs Tier

Senior Manager


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Senior Manager

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Steps To Take Be)or


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Senior Manager


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Senior Manager


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Senior Manager


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Senior Manager


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Senior Manager


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ope Bo Fond #t se%lLee Werrell Chartere( 1CSI 1ISMM

D(ner o% Comp%ian$e Cons"%tantContact me personally on >=> > ?D

in)o$omp%ian$e$ons"%tant0o

uk.linkedin.com/in/leewerrell

facebook.com/ComplianceConsul

@complianceconst @s166report
mailto:[email protected]:[email protected]

Senior Manager's Regime - Next Steps

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