Senior Managers Regime - Financial Conduct Authority

1 Senior Managers Regime October 2019. Foreword Introduction Responsibilities Individuals Governance Statements Appendices Contents Foreword from the Chair 3 Governance and management arrangements 24. FCA Corporate Governance 25. Introduction 5. Board and Board Committees 25. Allocation of Responsibilities 6 FCA Committee Structures 26. Introduction 7 Diagram of FCA committee structures 30. Diagram of FCA allocation 8 Matters reserved for the Board 33. Senior management Functions 9 FCA Subsidiary companies 34. Prescribed Responsibilities 11. Statements of Responsibility 35. Overall Responsibilities 16. Chair 36. Details of individuals 20 Chief Executive Officer 39. Individuals identified in the map 21 Executive Committee Directors 43. Other Senior management Functions 57.

2 Board Committees 61. Appendices 72. 2 Financial Conduct Authority Senior Managers Regime Foreword Introduction Responsibilities Individuals Governance Statements Appendices Foreword from the Chair Parliament has given the Financial Conduct We publish minutes of our Board meetings In March 2016, the Senior Managers and The Regime is a formal expression of the Authority (FCA) responsibility for ensuring as part of our commitment to transparency. Certification Regime (the Regime ) came into common sense, good governance practice that Financial markets work well by providing If people have concerns about action we force for deposit takers and investment that any organisation should adhere to. It an appropriate degree of protection for have, or have not, taken then these can be firms regulated by the FCA and Prudential was created against the backdrop of a clear consumers, protecting and enhancing the considered by the independent Complaints Regulation Authority (PRA).

3 As part of the and shared understanding that a culture of integrity of the UK Financial system and Commissioner. This robust system of Bank of England and Financial Services Act personal responsibility must be embedded promoting effective competition. Parliament checks and balances ensures that we use 2016, the Regime is also being extended to at the heart of Financial services. This is true has granted us significant powers to help us our powers responsibly and discharge our all FSMA authorised firms. The Regime is of firms and regulators alike. achieve this. We also have statutory duties important role effectively. designed to raise standards of governance, to ensure that our subsidiary, the Payment increase individual accountability and help We are not formally subject to the Regime , Systems Regulator (PSR), is able to discharge We want all those involved in Financial restore consumer confidence in the Financial but we uphold the highest professional its important functions services to be able to trust that their services sector.

4 Values and our stakeholders including regulator, and the firms it regulates, have Parliament and the Treasury Select These important responsibilities are their best interests at heart. That is why we These reforms emerged from a turbulent Committee rightly expect us to do supported by a robust framework of believe our Senior management should period in the Financial services industry. In line with this, we have decided to apply the accountability and transparency. We are meet standards of professional Conduct as Recent events have damaged consumer fundamental principles of the Regime to our accountable to the Treasury and to exacting as those we require from regulated confidence and highlighted a disconnect Senior staff. Parliament with detailed, public scrutiny firms.

5 Between them and the firms that are exercised by the Treasury Select supposed to serve them. 1. he Payment Systems Regulator is an independent T. Committee. We are open and accountable subsidiary of the FCA, with its own statutory to the public through the publication of our More than ever, society needs Financial objectives and separate Senior Managers and institutions that work effectively, innovatively Certification Regime documentation. Annual Report and our annual public meeting. We are subject to examination and and competitively, for today and the long 2. The Committee recommends that the FCA, and certification by the National Audit Office. term. This is essential for the health of the the PRA, draw up a Responsibilities Map' which wider Financial services industry and the allocates key responsibilities to individuals in their respective organisations.

6 This document should be interests of those who rely on it. published. It should be compliant as far as possible with the SMR that the regulators require of banks.. Para 184, cm201415/cmselect/cmtreasy/881 3 Financial Conduct Authority Senior Managers Regime Foreword Introduction Responsibilities Individuals Governance Statements Appendices Foreword from the Chair We want to ensure clarity about how we are The way we apply the Regime reflects our This publication represents our managed and governed. Embracing the specific functions as a public Authority and commitment to individual accountability. By principles of the Regime builds on our regulator. It therefore inevitably differs from holding ourselves to the highest standards existing framework of accountability, will that of a regulated firm.

7 For example, a we reinforce our expectation that those who further bolster our transparency and number of Senior management Functions work in Financial services do the same. reinforce the standards to which we hold and Prescribed Responsibilities that apply to Together this will help us to fulfil the purpose ourselves. firms do not apply to the FCA. Additionally, in for which we have been established to a few cases, we have amended the wording ensure that UK markets work well for the This document provides a formal description of responsibilities to ensure it is relevant to benefit of all who use them. of the core responsibilities of members of the particular functions we have as a our Board, Executive Committees and those regulator. carrying out Senior management Functions.

8 These are contained within the FCA. Statements of Responsibility and the FCA. management Responsibilities Map, which Charles Randell follow this foreword. Chair 4 Financial Conduct Authority Senior Managers Regime Foreword Introduction Responsibilities Individuals Governance Statements Appendices Introduction Applying the Senior The FCA is a public Authority created by deposit taking firms but which do not apply Delegation statute, accountable to the Treasury and to the FCA and (ii) a few cases where the Managers Regime to Parliament. As a regulator we have a wording of responsibilities has been The FCA's governance and management policy-making role, supervisory functions amended to ensure relevance. framework allows for delegation of The Regime currently applies to deposit and a range of powers and duties, some of Authority .

9 However, the allocated Senior takers and investment firms regulated by the FCA and PRA. From 10 December which may only be exercised by our Board. Shared services manager retains ultimate and overall responsibility for the SMF, Prescribed 2018, it also applies to insurers and will The PSR is an independent subsidiary of Our application of the Regime to ourselves Responsibility or Overall Responsibility apply to all other FSMA authorised firms the FCA, set up by statute. The FCA must reflects the different constitution and assigned to them. that are regulated solely by the FCA in the take such steps as are necessary to ensure functions of the organisation as a public The Regime aims to raise that the PSR is, at all times, capable of Authority and regulator. This will inevitably standards of governance, increase exercising its statutory functions.

10 The 3. he Regime will apply to firms regulated solely by T. be different in some respects to its the FCA at a date set by the Treasury. The Treasury individual accountability and help restore FCA's Chief Executive has ultimate application to a regulated firm. will announce this start date in due course. confidence in the Financial services sector. responsibility for ensuring this. As part of We are adopting and applying the core Points to note this obligation, we provide a number of principles of management Responsibilities services to the PSR. These services We are applying the core principles of include the PSR being housed in the same Maps to allocate key responsibilities to the management Responsibilities Maps and Senior individuals in the organisation. We building as the FCA, and the provision of IT, Senior Managers ' Statements of human resources, internal audit and also have Senior Managers ' Statements of Responsibilities largely in accordance with Responsibilities.