The Financial Conduct Authority (FCA) have issued 2 week notice letters to claims management companies (CMCs) insisting on them submitting the new Long Form As and Statement of Responsibilities (SoRs), well ahead of the November 24th Deadline. They appear to want to get the Senior Management Functions (SMFs) in place well before the rest of the industry.

The SMFs that apply to CMCs are SMF 29 Limited Scope Function and SMF 16 Compliance Oversight Function.

If the Individual Form attached to the CMC application for that senior manager was submitted less than 9 months before, CMCs can use the Short Form A to apply for approval, unless there have been any changes since the Individual Form was submitted, in which case please complete the Long Form A. This is unlikely in the majority of cases.

Where required, you should ensure that an SM&CR Form A and SOR is completed and sent to the FCA, apparently to give sufficient time for them to consider the contents.

They have also thrown in a red-herring: “Please also let us know if you have determined that your firm does not need any SMFs“. The Senior Managers and Certification Regime (SM&CR) Guide for Solo-Regulated Firms clearly states that they have to.

Authorised firms need to comply with SM&CR from 9 December 2019, or as soon as they are authorised if this is after 9 December 2019.  To do this firms should:

  • prepare Statements of Responsibilities for Senior Managers
  • train all Senior Managers and Certification staff on the Conduct Rules
  • identify individuals that will perform a certification function

To ensure your firm is prepared to meet the requirements of the new regime, please visit www.fca.org.uk/smcr or refer to the SM&CR Guide for Solo-Regulated Firms.

Marketing teams – will also have implications for financial promotions and marketing activity?

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