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TMA: Advisers should prepare for SMCR

Michael Lloyd

October 11, 2019

Advisers looking to ensure that their firm is compliant with the upcoming Senior Managers & Certification Regime (SMCR) need to complete any final preparations now, the TMA has warned.

The SMCR will replace the current Approved Persons Regime across the rest of the financial services sector from 9 December.

Lisa Martin (pictured), development director at TMA, said: “There is still time for adviser firms to become ‘SMCR ready’.

“It is essential that intermediaries get up to speed on the requirements as a matter of urgency. We understand that many firms are feeling daunted by the new regime and still aren’t sure how to prepare for it.

“The best approach to ensuring compliance is to break the changes down into digestible chunks and tackle them one-by-one.”

The expanded scope of the regime will place more responsibility and accountability with senior managers and other individuals working in almost all authorised firms.

Mortgage advisers will account for a large proportion of those affected.

Martin added: “SMCR compliance is well within the grasp of most adviser firms if they are supported with the necessary guidance and tools.

“It is in advisers’ best interests to understand the new rules and find the simplest and best possible route to preparing for them before the December deadline approaches.”

TMA has said that firms need to prepare themselves for SMCR requirements and identify what type of firm they are.

There are three categories according to the requirements: enhanced, core and limited scope.

Most intermediary firms are subject to the core regime.

TMA said that senior managers such as directors, will need to create a ‘Statement of Responsibilities’ which outline their role and responsibilities as a senior manager for the FCA and others in their firm to understand.


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