FCA and PRA streamline senior manager accountability regime to boost growth

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have revealed updates to the Senior Managers and Certification Regime (SM&CR) that aim to cut costs and reduce administrative burdens while maintaining accountability. Notable changes include extending the timeframes for senior manager applications, removing unnecessary certification requirements—leading to a roughly 15% reduction in roles—and simplifying annual evaluations. They’re also raising firm thresholds by 30%, clarifying job definitions, pushing back reporting deadlines, and improving the accuracy of criminal record checks. This is just the first step in a broader reform effort. The government plans to remove the Certification Regime from law, allowing regulators more flexibility, with further consultations expected under the Leeds reforms. Lucy Rigby, Sarah Pritchard, and David Bailey stressed the importance of maintaining high standards and protecting consumers.