FCA Regulatory Update – February 2021

The Final Countdown to Senior Managers and Certificate Regime (SM&CR)

The SM&CR is a catalyst for change and its aim is to reduce harm to consumers and strengthen market integrity by encouraging greater individual accountability for conduct and competence and setting a new standard of personal conduct.

The purpose of the SM&CR is to establish healthy cultures and effective governance in almost every solo-regulated firm, from very small firms (including sole traders and limited permission consumer credit firms) to some of the largest global firms. It also applies to branches of non-UK firms with permission to carry out regulated activities.

SM&CR (the Regime) comes into full force on 31 March 2021 but Appointed Representatives currently fall outside the Regime. Click the link to learn more about the Regime:

FSCS Annual Plan and Budget and Management Expenses Levy Limit consultation

FSCS recently published its Plan and Budget 2021/22, which confirms the 2020/21 supplementary levy and forecasts the 2021/22 compensation costs and levy. It also sets out FSCS’s recommendations on how the industry needs to come together to tackle the rising levy and explains the steps FSCS is already taking to reduce it.

Click the link to review the Plan and Budget 2021/22:


If you would like to read previous regulation updates, we’ve compiled a regulation update for:

January 2021 Regulation Update

May 2020 Regulation Update

March 2020 Regulation Update