FCA extend SMCR period of absence

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.

Important Note: ATEB news is intended to provide general information ONLY. The content, including any views expressed or guidance provided, does not replace the need to comply fully with FCA Rules and Guidance. Unless you have discussed news article content with ATEB, and specifically how it relates to your circumstances, then ATEB disclaims all liability and responsibility and actions arising from any reliance placed upon it. For the avoidance of doubt therefore, any reliance you place on such information without our consultation is at your own risk.

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Technical Manager - Often referred to as the Oracle or the Sage, Alistair has a wealth of financial services experience. He is our go-to Technical Manager and enjoys nothing more than a complicated conundrum. Feel free to test his renowned knowledge by getting in touch.

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