Revised managers' regime will uncover 'reckless and criminal' firms

31 Aug 2017

Earlier this week, the watchdog announced it was extending the scope of its Senior Managers’ and Certification Regime (SMCR) to cover all financial advisers and asset managers.


The FCA’s plan is to ensure named individuals can be held directly responsible for the key activities and actions of a financial practice, regardless of size.


SimplyBiz Group said the proposed new rules would be warmly welcomed by the vast majority of “conscientious and responsible” firms and advisers, as they have nothing to fear from these new regulations.


Group chairman Ken Davy said: “SMCR is aimed particularly at the reckless and criminal advisers who have so often created liabilities for the Financial Services Compensation Scheme and then walked away scot-free, leaving the well-run firms to pick up those liabilities. 


“A real benefit of the SMCR is that it should also become much more difficult for the small minority of firms and individuals who behave in a reckless or criminal manner to simply ‘phoenix’ in a new guise without suffering any repercussions for their previous poor behaviour.”


Davy added, however, that he is mindful that the introduction of wide scale regulatory change brings its own challenges. 


“We therefore believe that care will be required to ensure the new regulations do not stifle innovation and reduce confidence in decision making within advice firms.” 


Testimonials

“I'm very happy with the service”

Wendy Roberts
Wendy Roberts Financial Services

Read More

Latest News

Government must help meet the needs of the elderly

October 11, 2017

Being able to congratulate the FCA, while not by any means a first, is not something I am able to do regularly.

Read more >

"A princely way of looking at succession issues"

October 04, 2017

Seeing all the stories about Prince George starting school set me thinking about longevity and business succession issues for financial advisers.

Read more >

"Providers must allow tax deductible advice"

September 28, 2017

Knock, knock. Are you there? More importantly, are you listening?
I ask this question because of the enormous opportunities the current market is presenting for each and every adviser, whether working within a large firm or a one-person practice, as an independent adviser or restricted.

Read more >

Fos report is a dollop of gruel for advisers

September 19, 2017

Cold porridge and cold comfort have a lot in common: such meagre offerings do not come close to being satisfying.

Read more >