SMCR - Senior Managers & Certification Regime
SMRC is a Financial Conduct Authority (FCA) requirement that firms assess the fitness and propriety of their employees to deliver financial services competently and responsibly.
The SMCR assessment was originally introduced for individuals working in the banking and dual-regulated insurance companies but was later extended to include all FCA-regulated firms. Its role is not only to ensure firms and staff clearly understand where responsibilities lie across the organisation, but to foster a culture and environment within the financial sector where staff at all levels take personal responsibility for their own actions.
The SMCR includes a mandatory requirement for employers to carry out criminal record checks and seek detailed, specific references from past employers for certain roles. It is recommended that further assessments of financial soundness, competence and integrity are also considered.
Based on these requirements, SMCR compliant pre-employment screening covers a suite of verification checks for the Financial Services industry, including on:
- Identity
- Confirmation of the right to work in the UK
- Residential address
- International sanctions
- Public records such as CCJs, IVAs and bankruptcies
- Directorship against UK Companies House records
- Criminal records, according to relevant Rehabilitation of Offenders Acts
- Activity history covering the previous six years of employment, self
employment and education, and identifying any gaps (minimum) - Professional qualifications
Answering your questions on SMCR
What is the Senior Managers Regime?
The Senior Managers Regime requires those individuals working at the top level of an organisation to be FCA or PRA approved prior to their appointment. Furthermore, they must be certified at least once every twelve months.
What is the Certification Regime?
The Certification Regime applies to any employee whose role makes it possible for them to do significant harm to a business or its customers, regardless of whether or not they are FCA or PRA approved. Unlike the Senior Managers regime, there is no requirement to undertake a criminal background check for these employees. It is, however, recommended as good practice in assessing whether an individual is fit and proper to do their job.
What are the consequences of an SMCR breach?
There are a number of consequences where there has been a breach of SMCR. Both the business and senior managers can be held accountable should the FCA prove that reasonable steps were not taken to prevent the breach. These include removing organisation to act as an FCA-approved organisation, court action and significant financial penalties.
Why choose Security Watchdog for SMCR vetting?
- We integrate with industry-leading HR software such as Workday, and SAP to offer you management of your candidate screening directly from your own platforms.
- We offer an easy-to-use form capture, allowing candidates to upload documents straight from their mobile device and offering instant data validation.
- Our Express Screening service offers instant access to data needed to verify a candidates activity history. It removes the need for us to approach referees directly, instead verifying a candidate’s employment or gap in activity using integrations with banks, payroll and HR platforms.
- Live progress tracking supports a positive candidate screening experience.
- Robust screening made possible through our cutting-edge software and first-class customer service
- Evidence for the FCA, where needed, to demonstrate that the business and senior management team have taken all reasonable steps to prevent an SMRC breach through a cast-iron vetting process.
- A 24/7 accessible online screening portal offers from any location.
- Assurance of ongoing SMRC compliance at the touch of a button when it comes to regular re-screening and internal promotions.
How our online screening portal works
Whether you’re looking to screen only one individual or several hundred, our online screening portal makes the process quick, simple and accurate.
Set up your account
Access the client portal to create your candidate
Select your screening package of choice
We invite your candidate to complete our online form
We obtain the required references and background checks once they’ve supplied the necessary information.
You can monitor the progress of checks on any individual, at any stage
You can download a report for every completed screening.
Contact Us
Contact our team to find out more.