Question: What SMF 4?

What is a PRA PSM letter?

In sum, the PSM letter sets out a summary of the PRA’s view on.

the most material risks facing the firm, the most material risks that firm poses to the PRA’s.

objectives to ensure financial system safety and soundness, and delineates required mitigating actions..

What are the SMF functions?

SUP 10C. 4 Specification of functionsTypeSMFDescription of FCA controlled functionFCA required functionsSMF 17Money laundering reporting functionSMF 18Other overall responsibility functionSMF22Other local responsibility functionSMF 23bConduct risk oversight (Lloyd’s) function19 more rows

What is SMF 24?

2.11A Senior Management Functions 3.8 defines the Chief Operations function (SMF24) as ‘the function of having responsibility for the internal operations and technology of a firm’.

What is a core firm SMCR?

Core: firms in this tier will have to comply with the baseline requirements. The majority of solo-regulated firms fall into this category. Enhanced: this category will apply to a small number of firms whose size, complexity and potential impact on consumers or markets warrant more attention.

What SMF 18?

people who hold ‘overall responsibility’ for activities, functions or areas of the firm require regulator approval under SMF 18. Overall responsibility means that the person in question has ultimate responsibility for managing or supervising a function with direct responsibility for reporting to the governing body.

What are the senior manager functions?

Like all managers, the senior manager is responsible for planning and directing the work of a group of individuals. They monitor their work and takes corrective actions when necessary. Senior managers might guide workers directly or they might direct several supervisors, who in turn directly manage the workers.

What is the aim of SMCR?

The aim of SMCR is to reduce harm to consumers and strengthen market integrity by making firms and individuals at those firms more accountable for their conduct and competence. There are 3 key components which apply to financial service firms, the conduct rules, the senior managers regime and the certification regime.

What are the SMCR conduct rules?

SM&CR: The conduct rulesYou must act with integrity.You must act with due skill, care and diligence.You must be open and cooperative with the FCA, the PRA and other regulators.You must pay due regard to the interests of customers and treat them fairly.You must pay due regard to the interests of customers and treat them fairly.

What is a certified role?

According to the Senior Managers & Certification Regime (SM&CR), the Certified Individual role is a way to ensure that all employees who hold significant responsibility in a financial services firm are certified to fulfil their function.

What are the three types of SMCR firm?

The FCA has acknowledged that there are a range of different types of firm which will become subject to the SMCR, and it would not be appropriate to treat all firms in the same way. As a result, the FCA has effectively divided firms into three types: Limited Scope, Core and Enhanced.

Can prescribed responsibilities be shared?

Prescribed Responsibilities should normally be held by one person, however, in limited circumstances, they can be held by more than one individual, if the firm can show that this is appropriate and justifiable: As part of a job share.

How many individual conduct rules are there?

There are two tiers of the Conduct Rules. The first tier – consisting of five rules – applies to everyone. The second tier – consisting of four rules – applies only to Senior Managers. The only exception here is that Senior Manager rule 4 also applies to all non-executive and executive directors.

Which rules govern the conduct of senior managers?

Individual Conduct Rules:Rule 1: ‘You must act with integrity’Rule 2: ‘You must act with due care, skill and diligence’Rule 3: ‘You must be open and cooperative with the FCA, the PRA and other regulators’Rule 4: ‘You must pay due regard to the interests of customers and treat them fairly’More items…

What is smf17?

SMF17 Money Laundering Reporting Officer (MLRO) – acting as the MLRO for the London branch including receipt assessment, and onward disclosure of SARs. Legislations and regulations – keep up to date with any changes to UK Compliance regulations and laws, issued via the FCA and the PRA.

Who does the SMCR apply to?

The SMCR has been in force for banks, building societies, credit unions and PRA-designated investment firms (Relevant Authorised Persons) since March 2016 and was extended to cover all Financial Conduct Authority (FCA) solo-regulated financial services firms on 9 December 2019. It has replaced the APER entirely.

What is FCA certification?

The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry. … It focuses on the regulation of conduct by both retail and wholesale financial services firms.