The Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority have published consultations on a first phase of reforms to the Senior Managers and Certification Regime (SM&CR), proposing changes intended to make the regime more effective and less onerous for firms while maintaining accountability and regulatory protections. The package is positioned alongside the government’s consultation on legislative changes to SM&CR, including removing the Certification Regime and giving regulators greater flexibility to reduce the number of Senior Management Functions requiring pre-approval. The proposals include giving firms more time and flexibility to submit applications to approve new senior managers where there has been an unexpected or temporary change, extending the time allowed to report changes in senior manager responsibilities, and increasing the validity period of criminal record checks before an application is submitted. Other measures would strip out duplication where the same individual is certified for separate functions, reducing the number of certification roles by 15%, provide guidance on streamlining annual ‘fit and proper’ certification checks, clarify the definition of certain Senior Management Function roles, and allow more time for firms to update the Directory of certified staff. The consultation closes on 7 October 2025.
Bank of England 2025-07-15
Bank of England's Prudential Regulation Authority and Financial Conduct Authority consult on streamlining the Senior Managers and Certification Regime
The Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority have launched consultations on reforms to the Senior Managers and Certification Regime (SM&CR) to enhance effectiveness and reduce burdens on firms. Proposed changes include removing the Certification Regime, increasing flexibility in senior manager approvals, and reducing certification roles by 15%. The reforms align with the government's legislative consultation on SM&CR.