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Home > Prudential Regulation Authority > Senior Managers Regime - submitting, amending, withdrawing
 

Senior Managers Regime - submitting, amending, withdrawing

 

This page contains information on:

Submitting an application

All firms must submit all applications via the Connect application system (in execptional circumstances an exemption from the FCA Customer Contact Centre may be granted).
 
The exceptions to this are the following forms (which cannot be submitted via the Connect application system):
  • Form B (notice to withdraw);
  • Form M (notification of non SMF appointment); and
  • Form L (notification of disciplinary action in relation to an employee performing a certification function).

From B, Form M, Form L and all applications and notifications from those who have obtained the dispensation can be submitted by post or email to: 

Assessment & Monitoring Team
Prudential Regulation Authority
20 Moorgate
London EC2R 6DA
 
There is no fee charged to process these applications for approval as a SMF.
 
Applications should be made by the firm ('the applicant') and countersigned by the individual ('the candidate'). In submitting the application, both the applicant and the candidate verify that the information contained within the application is complete and accurate.
 
Prior to submitting an application firms may wish to engage with the PRA, particularly where the application may be of a sensitive nature and/or for a key role. Firms should contact their usual supervisory contact to discuss such cases. 
 
Firms must undertake sufficient due diligence to satisfy themselves on the appropriateness of the applicant before submitting the application and provide evidence to support this, including:
  • the due diligence undertaken by the firm in appointing the candidate;
  • confirmation they have obtained and scrutinized regulatory references and completed a DBS check; and
  • details of the rationale the firm has used to conclude that the candidate is fit and proper to perform the role for which approval is sought.
Should approval be required by a specific date, the firm should enter the role effective date in the ‘Arrangements and controlled functions’ section of the application. The PRA will make every reasonable effort to meet with this timeline; however, this may not always be possible.
 

Disclosure of information

Firms are required to disclose all matters relating to a candidate’s fitness and propriety. If a firm is not sure whether something may have an impact on a candidate’s fitness and propriety, the information should be disclosed. The PRA takes non-disclosure very seriously and may consider it to be evidence of current dishonesty. If in doubt, disclose.
 
In the event that a candidate discloses adverse information to the firm (or the applicant knows of adverse information by some other means) the applicant has a duty to disclose that information to the PRA.
 
In the event that adverse information comes to light after the application form has been submitted, or after the individual has been approved, the firm must still inform the PRA at the earliest opportunity.
 

Assessing and determining an application

Under section 61 of the Financial Services and Markets Act 2000 (FSMA), the PRA may approve an individual only where it is satisfied that a candidate is fit and proper to perform the Senior Management Function(s) applied for. When considering a candidate’s fitness and propriety, the PRA takes into account and be satisfied of the candidate’s:
  • honestly, integrity and reputation, ie that they will be open and honest in their dealings and able to comply with the requirements imposed on them;
  • competence and capability, ie that they have the necessary skills to carry on the function they are to perform; and
  • financial soundness.
The length of time taken to determine an application will vary, particularly where there is evidence of non-disclosure and/or adverse information, or where an interview is required to assess the candidate’s competence and capability. In these cases, the PRA may require the applicant to submit further information it considers necessary to determine the application. As a result, the statutory clock will be stopped until that information has been received and/or the interview has taken place.
 
Nevertheless, the PRA has a statutory obligation to undertake their review of the application within 90 days of receipt.
 
The PRA will take a proportionate approach in its assessment of applications, taking into account all matters relating to an individual’s fitness and propriety.  Where appropriate, the PRA may also interview candidates as part of its assessment. This is particularly the case for the most senior roles at the largest firms although, at its discretion, the PRA may also choose to interview other candidates.
 
Where both the PRA and the FCA wish to interview a candidate they will, so far as possible, seek to co-ordinate a single joint interview with the applicant. Both organisations do, however, reserve the right to conduct solo interviews, where appropriate.
 
If a decision is made to approve the application, the PRA will inform the firm by issuing an approval notice. If the decision is that the application is not successful and the PRA and/or the FCA are minded to refuse the application, the PRA will inform the applicant by issuing a Warning Notice which will include details of the appeals process.

Non-responders

During the course of their assessment, case officers may request further information from firms via email to help reach a decision. If the firm does not respond to this request within four weeks they are considered a ‘non-responder’. The PRA will make further reasonable effort to obtain the required information, but may reject a non-responder’s application at its discretion if the information is not forthcoming.
 

Compliance

All SMFs must comply with and meet the fit and proper test for approved Senior Managers as set out in section 61 of FSMA on an ongoing basis. The FIT section of the Rulebook provides further guidance on what the PRA will take into account when assessing individuals against this. Approved persons must inform their firm and the PRA of any matter that may impact their ongoing fitness and propriety.
 
The PRA has various powers against an individual approved to perform a SMF where an individual acts in a manner inconsistent with the PRA’s conduct rules or standards expected of an approved person, or if an individual knowingly consorts in a breach of their firm expectations. This action may include a fine, a suspension of the approval, imposing restrictions or issuing of a public statement relating to the misconduct.
 
Where the PRA believes that a person is no longer fit and proper to perform the function, approval may be withdrawn or the individual may be prohibited from holding approval status in the future. 
 
The Senior Managers Regime (SMR) and Certification Regime came into force on 7 March 2016.  The forms and accompanying guidance notes for the new regime are set out below. 
 
The Senior Managers Regime (SMR) and Certification Regime came into force on 7 March 2016.  The forms and accompanying guidance notes for the new regime are set out below. 
 

Table of Forms - Relevant Authorised Persons (RAPs) excluding Third Country branches

​Form ​Description

Guidance notes

​A - Long

Application to perform controlled functions

​Guidance notes will follow in due course.
​A - Short

Application to perform controlled functions

​B Notice to withdraw an application to performs controlled functions
​C Notice of ceasing to perform controlled functions
​D Changes to personal information/application details and conduct breaches/disciplinary action related to conduct
​E Internal transfer of an approved person Guidance notes will follow in due course.
​I Application for the variation of a conditional approval for the performance of a Senior Management Function
​J Notification of significant changes in responsibilities of a Senior Management Function Manager
​L Notifications of disciplinary action in relation to an employee performing a certification function ​Guidance notes will follow in due course.
​M Notification of NED & KFH 

Guidance notes will follow in due course.

​SOR

Statement of Responsibilities

For the SoR for third country RAPs see below.

Guidance notes will follow in due course.

 

 

Table of Forms - Third Country Relevant Authorised Persons (RAPs)

​Form ​Description
Guidance notes
​A - Long ​Guidance notes will follow in due course.
​A - Short
​B Notice to withdraw an application to performs controlled functions
​C Notice of ceasing to perform controlled functions
​D Changes to personal information/application details and conduct breaches/disciplinary action related to conduct
​E Internal transfer of an approved person Guidance notes will follow in due course.
​I Application for the variation of a conditional approval for the performance of a Senior Management Function
​J Notification of significant changes in responsibilities of a Senior Management Function Manager
​L Notifications of disciplinary action in relation to an employee performing a certification function ​Guidance notes will follow in due course.
​M Notification of NED & KFH 
Guidance notes will follow in due course.
​SOR Guidance notes will follow in due course.
 
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