The UK’s Financial Conduct Authority (FCA) has warned that, despite delays to the implementation of the Senior Managers and Certification Regime, it will still take action against senior managers and certified persons for misconduct during the coronavirus pandemic.
In a Consultation Paper published on July 17, the regulator said firms would still be held accountable under its rules. It follows a move earlier this month when the FCA delayed the deadline for solo-regulated firms to have completed their first “fitness and propriety” assessment until March 31, 2021.
Jonathan Davidson, Executive Director of Supervision (Retail and Authorisations) at the FCA, said the regulator expects firms to use this extra time to implement certification and conduct rules to the highest standards. “These proposed changes recognise the exceptional stress placed on financial services firms by the Covid-19 pandemic and the importance for firms to fully and properly implement the certification regime and to train staff effectively in the conduct rules,” he commented.
While the FCA expects that most firms will be able to meet the original deadline, they hope to encourage all firms to embrace these conduct rules and create lasting change. Respondents have until August 14 to comment on the consultation.