FCA AND PRA REFORM SENIOR MANAGER ACCOUNTABILITY RULES

The Financial Conduct Authority and the Prudential Regulation Authority have confirmed changes to the Senior Managers and Certification Regime. The reforms are designed to reduce costs for firms operating under the framework. The two regulators have also confirmed the changes aim to offer greater flexibility within the regime. The announcement marks a joint move by both bodies to streamline existing accountability rules.

The Senior Managers and Certification Regime sets out how financial firms must assign and record accountability among their most senior staff. The reforms target specific elements of the regime identified as creating unnecessary administrative burden. Greater flexibility within the framework is intended to make compliance more proportionate for firms of varying sizes and structures. The changes apply across the scope of both the FCA and PRA's regulatory remits.

The reforms form part of a broader effort by UK financial regulators to support economic growth without weakening oversight standards. Both the FCA and PRA hold statutory responsibilities to consider the impact of their rules on competitiveness and growth. The confirmed changes follow a period of review by both regulators into the operational burden of the existing regime. Firms subject to the Senior Managers and Certification Regime will be expected to implement the updated requirements in line with guidance issued by the FCA and PRA.