SM&CR regulatory references

Regulatory references are central to the Senior Managers & Certification Regime (SM&CR). They help firms make informed decisions about the fitness and propriety of individuals to whom they intend to assign Senior Management or Certification Functions (or appoint as non-approved Non-Executive Directors).  

In response to feedback on the challenges firms face when obtaining regulatory references, the FCA has published the following clarifications on some key points. 

  • You should request, and respond to requests for, regulatory references promptly. Although SYSC 22 includes guidance that they should be provided within 6 weeks, this is a limit, not a target. 
  • When providing regulatory references, use the template in SYSC 22 Annex 1. Ensure the template is complete and the information provided is accurate, before sending it. Failing to use the correct template or sending incomplete or inaccurate information can cause delays. 
  • Firms need only take reasonable steps to obtain regulatory references. If you experience difficulties obtaining regulatory references from a particular firm, tell us. If you are unable to obtain regulatory references as part of an application, set out the steps you took to obtain references – this will help avoid delays during the application assessment. 
  • You should assess regulatory references on a case-by-case basis and individuals shouldn’t be automatically rejected due to a qualification in their references. You also shouldn’t have a quota for the number of qualified references you will accept, as we understand is sometimes the case.

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.

ATEB Suitability provides report writing software for the financial services market.

Our View

Timely, good quality references are in the interests of everyone so this guidance should be helpful.

Action Required By You

For information. ATEB can assist with all aspects of SM&CR implementation in firms. Contact us if you would like to discuss how we might help you with this or any other compliance / regulatory aspect.
SUIT - Beautiful Reports
SUIT - Complete Control
SUIT - Comp confidence
previous arrow
next arrow

About the Author

John is Chartered Financial Planner and a Fellow. With a wealth of financial services experience, including as a successful adviser, John is a long standing ATEB consultant, with a proven track record of delivering robust compliance and T&C solutions across all regulatory disciplines.

Contact Us

Brought to you by

Explore more articles in this category

Other articles that you might be interested in