Regulator issues SMCR reminder to insurers

One week left for submission of conversion notifications

Regulator issues SMCR reminder to insurers

Insurance News

By Terry Gangcuangco

Insurance firms required to submit a conversion notification form to convert relevant individuals as part of the Senior Managers and Certification Regime (SMCR) will have to do so before midnight on December 02.

The SMCR, which already applies to the banking sector, will be extended to the insurance industry on December 10, and the Financial Conduct Authority (FCA) is reminding insurers that they only have one week left to submit conversion notifications ahead of the rollout. The process entails the switch from the Approved Persons Regime to a senior management function.

Aside from submitting a conversion notification Form K, which goes with the map and statement of responsibilities, firms also need to have identified and trained their certification staff. Senior managers must also have undergone training in the relevant conduct rules.

“We care about culture because it is a key root cause of major conduct failings,” said FCA’s Jonathan Davidson, executive director of supervision – retail and authorisations. “We are committed to transforming culture in financial services as we believe this will have a positive impact on consumers and markets.

“The SMCR is an important way to ensure that individuals take personal responsibility for their actions as well as firms. The SMCR is designed to make all financial services staff individually accountable for being competent and diligent and for acting with integrity in the interests of customers.”

According to the regulator, the new rules will ensure organisations’ governance arrangements are transparent and set clear expectations for the conduct of the entire workforce.

“This is not a box ticking regime, it’s about the day-to-day behaviour of all staff,” explained Davidson. “It’s about creating a healthy culture and healthy outcomes for consumers and employees.”

Meanwhile a guide on the requirements and paperwork is available on the FCA website.

 

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