The Consultation Paper CP15/22 Strengthening Accountability in Banking, details the new changes to the Senior Managers and Certification Regime. These are mostly clarifications following some confusion over the rules, but there are also a few alterations and additions. Highlights are:

  • Certificates for people performing Certification Functions do not have to be produced until 7 March 2017 – a year after the introduction of the Certification Regime
  • Additional references are not required for people performing Certification Functions if they were performing the same function immediately prior to 7 March 2016
  • NEDs (non-executive directors) that are not performing SMFs (senior management functions) are called Notified NEDs
  • Fitness and Propriety checks also apply to Notified NEDs
  • References are also required from organisations where someone has performed a NED role (regardless of whether their new role is a NED or not)
  • A NED that is moving from an SMF to be a Notified NED is not subject to further Fitness and Propriety checks
  • To Grandfather to an SMF the person must be approved under the APER (Approved Persons Regime) for the equivalent role (see table on P41 of the Consultation Paper) immediately prior to 7 March 2016
  • Grandfathering to a non-equivalent role requires additional approval
  • Grandfathering of a parent company's APER is acceptable if the original approval extends to the subsidiary (and is an equivalent role)
  • The Grandfathering notification deadline is 8 February 2016 and requires a Statement of Responsibilities per person and to be signed by the person
  • For people commencing a SMF on or after 7 March 2016 a new form is to be used that will be issued on 1 January 2016 (old/existing forms if commencing prior to 7 March 2016)
  • Governance Maps seem to have returned to being named Management Responsibility Maps
  • Regulatory References are still under review (aligning with other policies e.g. FEMR)
  • Policy Statement yet to be issued for UK Branches of Foreign Banks and UK Branches of non-EEA Firms (Incoming Branches).