Rules due to come into force in March 2016

Yesterday HM Treasury announced the commencement date for the new FCA and PRA Senior Managers and Certification Regime. Relatively limited information has been released, but HM Treasury has said that:

• The new rules will come into force on 7 March 2016 (for both UK institutions and UK branches of overseas firms).

• Firms will need to notify the FCA/PRA of the names of their senior staff who will be Senior Managers under the new regime by 8 February 2016.

Impact on timing for the Certification Regime and the new Code of Conduct

Provided that the ‘grace period’ for the Certification Regime and the Code of Conduct remains the same as was stated in the FCA and PRA Consultation Paper which was published in July 2014, this will mean that firms will be required to:

• certify individuals falling within the Certification Regime as fit and proper no later than 7 March 2017; and

• train all other staff in relation to the Code of Conduct by 7 March 2017.

This is more time than we and others in the industry were expecting HM Treasury to give firms to implement the new regime. It is likely that this extended timetable may be due to considerable pushback that has been received by HM Treasury and the regulators from financial institutions to the original implementation timetable (which proposed that the new regime would come into effect Q3/4 this year).

A copy of HM Treasury’s announcement can be found here. A copy of the brief press release issued by the FCA can be found here. The FCA has also stated that it intends to publish a ‘roadmap to commencement’ later this month which will give further details about when the FCA and the PRA expect to publish their final rules for the new regime.