SM&CR forms

There are quite a few forms associated with SM&CR. We thought it would useful to summarise the various forms and their purpose.

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Form A (Long) – Application to perform controlled functions including SMFs

Form A (Short) – Application to perform controlled functions including SMFs

All firms

An application for an individual to perform a specified SMF (or, for Appointed Representatives only, controlled function) at the firm(s).

A ‘short’ Form A can generally be used where:

  1. a currently approved individual is applying for an additional controlled function at the same firm;
  2. an individual has stopped holding a controlled function at one firm and now needs approval to perform a controlled function at another firm within six months;
  3. an individual is applying to hold a controlled function and is already approved.

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Form C – Notice of ceasing to perform controlled functions including Senior Management Functions

All firms

An application for used to cancel an individual approval.

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Form D – Changes to personal information/application details and conduct breaches/disciplinary action related to conduct

All firms

Used to notify the FCA of Conduct Rule breaches by Senior Managers, disciplinary action taken against Senior Managers and changes to personal information.

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Form E – Internal transfer of a person performing a controlled function for solo regulated firms

All firms

An application for an individual to change the approved function being performed.

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Form I – Application for the Variation of a Conditional Approval for the performance of a SMF

All firms

An application for changes to the conditions associated with a conditional approval to perform a SMF

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Form J – Notification of Significant Changes in Responsibilities of a SMF Manager              

All firms

A notification submitted to inform the FCA of significant changes to a Senior Manager’s SoR.

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Form K – Conversion Notification Form – FCA solo-regulated firms

Enhanced firms (and Core firms on an exceptions basis)

An application to convert the firm’s approved individuals from the Approved Persons regime to new functions under the SM&CR. This can also be used to submit updates to a previous Form K.

See here for further guidance on Form K.

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Form O

Optional form for Core and Limited Scope firms

A notification to opt up into the Core or Enhanced tiers.

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REP008 – Notification of Conduct Rule Breaches and Disciplinary Action

All firms

Used to notify the FCA of whether the firm has taken disciplinary action for Conduct Rule breaches in the reporting period against individuals who are not Senior Managers.

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Statement of Responsibilities for solo-regulated SMCR firms

All firms

A firm must use this template to create a Senior Manager’s SoR. At approval it should be attached to a Form A, Form E or Form K submission. A firm must also use this template when preparing an updated SoR and it should be attached to a Form I (application for the variation of a conditional approval) or Form J (notification of a significant change to a SoR) application.

 

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.

ATEB Compliance offers compliance and regulatory advice.

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Our View

The SM&CR will apply to all FCA solo regulated firms in just a few weeks time. Most Senior Managers will be converted without any further action being required. But, for individuals whose Senior Manager role is new, or has changed, firms will need to ensure that the appropriate information and, where required, request for approval is submitted by applicable deadlines.

Core and enhanced firms will also need to have identified all Certificated staff and run Conduct Rules training for all Senior Managers and Certificated staff by 9 December 2019.

In addition to the FCA forms, firms will have to create new processes or amend existing processes to support the implementation of the SM&CR.

ATEB has developed a suite of tools to assist firms in implementing the SM&CR.

Action Required By You

  • Ensure any applications for approval and changes are notified as required;
  • Identify all Certificated Staff by 9 December 2019;
  • Undertake Conduct Rules training for all SMs and Certificated staff by 9 December 2019;
  • Contact ATEB if you would like to see how we could help you implement SM&CR.

About the Author

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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