The FCA has launched a consultation paper setting out a number of
technical rule changes to the Senior Managers and Certification
Regime (SM&CR). The changes are being made as a result of HM
Treasury's announcement in October 2015 that it would be
amending the current SM&CR legislation as it applies to the
banking sector. This included the repeal of section 64B(5) of the
Financial Services and Markets Act 2000 (FSMA), which required
firms to report to the FCA known and suspected breaches of the FCA
Rules of Conduct, before the SM&CR regime enters into force on
7 March 2016.
The FCA proposes to remove references to notifications of known
and suspected rule breaches in the associated forms, thereby
streamlining reporting requirements so that the forms only require
firms to inform the FCA of disciplinary action taken against staff
as a result of a breach of one or more Rules of Conduct. The
pre-existing obligation to report material breaches will, however,
remain in
