People entering RPC building.

FCA and PRA set out wide-ranging rules and proposals for the SIMR and SMCR

11 October 2016

Falling like autumn leaves, the FCA and PRA have published a number of papers relating to the senior insurance managers regime as well as the senior managers and certification regime (which will apply to insurers from 2018).

The new measures are part of the regulators' continued focus on culture and are designed to help build on previous rules that help the regulators to identify and assess key individuals. The papers published by the regulators include:


  • Final rules from the FCA and PRA on regulatory references – these clarify the information that firms are required to share with one another as part of recruiting to key roles;
  • A Consultation Paper by the FCA on Guidance for Senior Managers on the ‘Duty of Responsibility’;
  • A Consultation Paper by the FCA on extending the conduct rules to all non-executive directors of banks and insurers;
  • A Discussion Paper by the FCA about how those heading up the legal function in firms should be treated under the Senior Managers and Certification Regime (this will apply to insurers in 2018); and
  • Supervisory statements from the PRA concerning the accountability regime in banks and insurers.

Whilst insurers have implemented the requirements under the SIMR, substantial internal change will be required to implement the SMCR from 2018.  Of particular interest for insurers will be the application of conduct rules to all staff except those in ancillary roles, and the implementation of the certification regime, which will cover staff such as senior claims handlers who are not currently caught by the Approved Persons regime.


The publication of these papers marks a significant stage in the development of the regime ahead of a further consultation about how the FCA proposes to extend the SMCR to all financial services firms including insurers.