Regulation Watch is a new resource aimed at providing our members with updates on the activity of the sector's regulators, highlighting areas of specific interest.
- A report on on the first six months of the Senior Managers Regime (SMR). This included separate consultations on; further guidance to firms, the extension of the regime to Non-Executive Directors; and a discussion paper on whether legal functions should remain within the SMR. Alongside these papers, the regulator also provided 4 feedback papers on its Supervisory Quality Checks. These outline for different parts of the banking and credit union sector, how successfully firms have approached the reporting of Senior Manager. These are quite interesting in gaining insight into the issues to date, if fairly similar findings across the reports. All can be viewed online
- A consultation to update the existing appropriate exam standards (AES) for appropriate qualifications in retail investment advice. The proposals follow discussions with the sector and generally aim to provide additional guidance, as well as bringing the AES up to date with changes to the market. The FCA is also seeking feedback on whether to make equity release available as a standalone qualification. See the FCA website for more details.
The Prudential Regulation Authority (PRA) has also published a consultation on the SMR aligned to that of the FCA. This can be viewed here.
You may also find of interest a guide released by the PRA's New Bank Start-Up Unit explaining its approach to licensing new banks. You can view the guide here.
FCA Business Plan 2016/17
Our summary on the key points of the business plan for members is still available to view