As we indicated in a recent Newsletter, one of the FCA’s responses to the COVID-19 emergency is to extend the period allowed to cover absent senior managers.
That extension has now been formalised in a rule modification by consent permitting the maximum period firms can arrange cover for a senior manager without being approved, to be increased from 12 weeks to 36 weeks. You can read the FCA News story here.
The modification by consent to rules SUP10.3.13 and SYSC 24.1.2 is available to all solo regulated firms and aims to provide flexibility for governance arrangements during the coronavirus pandemic. It also allows firms to allocate an absent senior manager’s prescribed responsibilities to the individual covering the role.
Firms can use the modification by consent if they think they may need to make or extend temporary arrangements to cover absences as a result of the coronavirus (Covid-19) crisis, for example, if a senior manager is absent, or if recruitment to replace a senior manager has been delayed. Firms can also apply for the modification by consent as a precautionary measure, in advance of actually needing it.
The modification by consent will take effect from the date the firm applies for it, and will end on 30 April 2021.
Full details of the rule modification and how to use it can be found here.
A list of firms that have been granted the modification by consent will be published on the FCA website.