Fri, Aug 2, 2019

Mark Turner Discusses New FCA Guidance Relating to SMF 16

Mark Turner, Managing Director in Duff & Phelps’ Compliance and Regulatory Consulting practice, spoke to Thomson Reuters about the new guidance from the Financial Conduct Authority (FCA) which may require heads of compliance in core firms holding the SMF16 compliance oversight function to seek certification if they undertake former CF28 systems and controls functions under the defunct Approved Persons Regime. The requirement may apply to these and other senior managers if such activities, focused on risk, finance or internal audit, are not part of their current senior management responsibilities.

“In some smaller firms, it is not uncommon for heads of compliance who would hold the SMS 16 function to also carry out the risk functions in relation to systems and controls. They are a very good example of those might be affected by this guidance…. Heads of compliance in this situation should make sure they are certified for the risk function alongside holding the SMF16 function to comply with the change in FCA guidance….This makes sense and is proportionate. Where issues arise in risk and a compliance officer is responsible for risk, the FCA wants to ensure that the individual is certified for that role to ensure that the risk role doesn’t fall outside their regulatory scope," Mark said.

Read the full article here.