FCA Compliance - New SMCR Conduct Rules for Senior Managers & Non Executive Directors

Introduction

The FCA has issued a warning to firms about 'significant weaknesses' in the implementation of the conduct rules for staff, saying:

'The conduct rules are a critical foundation for firms’ culture and the conduct of individuals. It is essential that staff understand the rules and how they apply to them. This must include the provision of suitable training.'

The Conduct Rules set minimum standards of individual behaviour in financial services. They apply to all employees who perform financial services activities in a firm.

The new rules are a fundamental part of the Senior Managers & Certification Regime, which aims to reduce harm to consumers by making individuals more accountable for their conduct and competence.

Some Conduct Rules apply to all employees, while others only apply to senior managers and non-executive directors.

This full day advanced level course will explore the new Individual Conduct Rules, which apply to virtually all staff, and the Senior Manager Conduct Rules, which apply in full to senior managers and partially to non-executive directors.

It is suitable for senior managers, non-executive directors, compliance officers and human resources personnel with responsibility for implementing the new training requirements.

What You Will Learn

The course will explore each of the following new Individual Conduct Rules and Senior Manager Conduct Rules in detail and take learning points from FCA guidance and enforcement action against firms and senior managers:

• Individual Conduct Rules:
• Rule 1: ‘You must act with integrity’
• Rule 2: ‘You must act with due care, skill and diligence’
• Rule 3: ‘You must be open and cooperative with the FCA, the PRA and other regulators’
• Rule 4: ‘You must pay due regard to the interests of customers and treat them fairly’
• Rule 5: ‘You must observe proper standards of market conduct’
• Senior Manager Conduct Rules:
• Rule SC1: ‘You must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively’
• Rule SC2: ‘You must take reasonable steps to ensure that the business of the firm for which you are responsible complies with the relevant requirements and standards of the regulatory system’
• Rule SC3: ‘You must take reasonable steps to ensure that any delegation of your responsibilities is to an appropriate person and that you oversee the discharge of the delegated responsibility effectively’
• Rule SC4: ‘You must disclose appropriately any information of which the FCA or PRA would reasonably expect notice’
• Discussion forum - The course will provide a forum to discuss how the new Conduct Rules apply to specific roles within firms.