The Prudential Regulation Authority has issued final rules and updated guidance for its Phase 1 reforms to the Senior Managers and Certification Regime, amending multiple PRA Rulebook Parts and key supervisory statements to streamline the regime while maintaining accountability. The changes apply to all PRA-authorised firms and relevant Change in Control cases, with the rule and supervisory statement amendments taking effect on 24 April 2026. Core reforms include adjustments to the 12-week rule so firms must submit a complete Senior Management Function application within 12 weeks of an absence, while supervisors retain the statutory three months to determine the application. The Senior Manager Conduct Rules will apply to individuals temporarily performing an SMF under the 12-week rule, with breaches reportable via an updated Form L. The package also clarifies expectations for identifying Group Entity Senior Manager roles, extends SMF7 to controllers and their representatives where they significantly influence day-to-day management, and exempts resolution administrators and similar officials appointed by the Bank of England or HM Treasury from the SM&CR. Operational changes include a six-month window to submit updated Statements of Responsibilities and Management Responsibility Maps after significant changes, with only the latest version required if multiple changes occur, new guidance on regulatory references where investigations are incomplete, and criminal record check changes including extending the lookback period to six months and removing the requirement for a new check where an existing SMF holder moves to another SMF role within the same group with up to a one-month gap. Most changes take effect on 24 April 2026, but PRA system updates for Forms A and E will not be implemented until 10 July 2026, meaning system recognition of the new criminal record check validity period will lag until then. The PRA also signalled a further consultation on more extensive Phase 2 reforms, subject to legislative timings, alongside HM Treasury’s planned draft Bill to enable wider changes.
Prudential Regulation Authority 2026-04-22
Prudential Regulation Authority finalises Phase 1 reforms to the Senior Managers and Certification Regime effective 24 April 2026
The Prudential Regulation Authority has finalised Phase 1 reforms to the Senior Managers and Certification Regime, amending multiple Rulebook Parts and supervisory statements to streamline processes while maintaining accountability for all PRA-authorised firms and relevant Change in Control cases from 24 April 2026. Key changes include revised operation of the 12-week rule, extended Senior Manager Conduct Rules, clarified expectations for Group Entity Senior Manager roles and SMF7, exemptions for certain resolution officials, and adjustments to Statements of Responsibilities, Management Responsibility Maps, regulatory references and criminal record checks. Most measures take effect in April 2026, with system changes for Forms A and E deferred to 10 July 2026, and a further consultation on more extensive Phase 2 reforms signalled.