SM&CR update – deadline extended for FCA solo-regulated firms to assess fitness and propriety of Certified Persons

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Posted on 13 Jul 2020

On 30 June 2020, HM Treasury and the FCA agreed to delay the 9 December 2020 deadline for FCA solo-regulated firms to carry out the first assessment of the fitness and propriety of their Certified Persons. The deadline is now 31 March 2021. This change is designed to give those firms significantly affected by the coronavirus pandemic time to make the changes they need.

FCA consultation - The FCA has in turn said that it will now consult on extending the deadline for the following, from 9 December 2020 to 31 March 2021:

  • The date the Conduct Rules come into force
  • The deadline for submission of information about Directory Persons to the Register
  • References in the FCA rules to the deadline for assessing Certified Persons as fit and proper

The purpose of this consultation is to ensure SM&CR deadlines remain consistent and to provide extra time and certainty for firms that need it. The timing of the FCA consultation is designed to allow the FCA to finalise their policy as soon as possible.

Conduct Rules training - The FCA has set out that firms should continue with their programmes of work in these areas and, if they are able to certify staff earlier than March 2021, they should do so. Firms should not wait to remove staff who are not fit and proper from certified roles. 

Financial Services Register - The FCA will still publish details of certified employees of solo-regulated firms starting from 9 December 2020 on the Financial Services Register. Where firms can provide this information to the FCA before March 2021, they are encouraged to do so.

Doyle Clayton’s regulatory expertise means we are well placed to support our clients with any queries relating to SM&CR.  Please contact Charles Herbert or your usual Doyle Clayton contact if you have any questions on these changes. 

The articles published on this website, current at the date of publication, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your own circumstances should always be sought separately before taking any action.

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