What is SMCR?
New Legislation
The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) extended legislation for the Senior Managers Regime and Certification Regime (collectively SMCR) in March 2016, and March 2017 respectively. In response to the new legislation, Diligent have created an SMCR Solution using the Entities database.
To further assist clients in the financial and insurance sectors with tracking regulatory compliance information, the architecture of the SMCR tool has been enhanced to support additional regimes with similar structures.
The SMCR Solution consists of three distinct components – the Senior Managers Regime Solution (SMR) the Certification Regime Solution (CR) and Conduct Rules .
SMR
The SMR Solution, facilitates the initial allocation of Functions to Individuals, or identification that an Individual is Approved to function within/for the regulated Entity, the assignment of relevant Responsibilities or Conditions from different categories (depending on the Regime/jurisdiction), and the on-going maintenance/updating of the completed Functions/Responsibilities and Approvals/Conditions mapping.
The Entities SMR Solution enables you to:
- Identify and flag all Legal Entities in your organisation that fall under any regime or jurisdictional regulation by creating Regime and Filing records for each Entity.
- Classify Entities appropriately (Financial Entity Type) to narrow down the list of applicable Functions and Prescribed Responsibilities to the relevant ones (SMR).
- Map the correct Individuals to the appropriate Functions within a Legal Entity or to indicate that an Individual is approved to function under a regulated Entity.
- Assign relevant Prescribed, Overall and Other Responsibilities to the mapped function.
- Add Custom Responsibilities/Conditions to any category (all regimes).
- Produce a Statement of Responsibilities report for all affected Legal Entities (SMR).
- Produce a Mapping Document of completed assignments for regulated Entities under other regimes/jurisdictions.
- Roll over all mappings within an Entity from one filing to the next.
CR
The Certification Regime (CR) Solution component of the tool enables Users to conduct a robust electronic Self-Declaration process for all Individuals falling within the Certified People category as part of the mandatory annual Certification process under SMCR.
The Entities CR Solution enables you to run an electronic Self-Declaration workflow, with appropriate approvals, as part of your overall annual Certification process.
The tool enables you to:
- Identify and flag all Individuals who fall within the Certification Regime, hence build your Certification Population list
- Administer an electronic Self-Declaration process for all Certified Individual
- Configure a 2-4 step electronic approval Workflow process to obtain sign-off(s) for the Self- Declaration from relevant manager
- Produce an actual Certificate for Individuals who successfully completed the Self-Declaration and obtained the necessary sign-off
- Roll-over the existing records in preparation for next year's process.
Conduct Rules
Conduct Rules are in place to increase individual accountability for potential misconduct within regulated institutions across a wider span of job functions. Employees subject to Conduct Rules should be aware the rules apply to them and take reasonable steps to verify how these rules influence their professional activities.
The tool enables you to:
- Initiate Conduct Rules reviews to relevant individuals
- Monitor the status as an Administrator and send reminders for outstanding records
- Send Individual self acceptance of Conduct Rules relevant to them
Browse the related topics to discover more about how the Diligent Entities SMCR solution works.
