Senior Managers and Senior Insurance Managers Regimes - Approvals | SMR submitting, amending, withdrawing | SIMR submitting, amending, withdrawing
This section provides information on applying for Senior Management Functions in the new Senior Managers and Senior Insurance Managers regimes. On this page you will find an overview with key changes to the old Approved Persons regime, and how to apply.
The Senior Managers Regime (SMR) and Senior Insurance Managers Regime (SIMR) came into force on 7 March 2016. The regimes replace the Approved Persons regime as part of implementing the recommendations in the final report of the Parliamentary Commission on Banking Standards (PCBS) to support a change in culture at all levels in banks, building societies, credit unions and PRA-designated investment firms (collectively referred to as Relevant Authorised Persons or RAPs).
- The regimes apply to the most senior executive management and directors who are subject to regulatory approval.
- The ‘Certification Regime’ (CR) for deposit taking firms (excluding credit unions) requires relevant firms to assess the fitness and propriety of certain employees who could pose a risk of significant harm to the firm or any of its customers.
- Firms must allocate prescribed responsibilities across their Senior Managers setting out their duties. This forms part of the overall firm management and governance map.
- Conduct Rules now apply to RAPs and Solvency II firms with notification requirements in certain circumstances.
Under section 59 of the Financial Services and Markets Act 2000 (FSMA), authorised firms are required to ensure that individuals seeking to perform one or more of the PRA–designated Senior Management Functions seek PRA approval prior to taking up their position. Non-approval prior to taking up the role may lead to enforcement action against the firm and/or the individual.
For more background of the development of the Strengthening accountability regimes, please see the links below.
Applying, assessing and determining
- What we assess
- Statutory deadlines
For new applications, where approval is being sought for relevant individuals taking up roles and responsibilities, please see the forms available at:
SMR submitting, amending, withdrawing for banks, building societies, credit unions, non-EEA third country branches and PRA-designated investment firms; or
SIMR submitting, amending, withdrawing for Solvency II insurance firms, Swiss general insurance firms, large non-Directive firms and small non-Directive firms.
Firms should only apply to the PRA for approval of PRA-designated Senior Management Functions (SMFs) and Senior Insurance Management Functions (SIMFs) at dual-regulated firms. For a list of PRA-desginated SMFs and SIMFs see the document 'PRA-designated Senior Management Functions' under key resources.
For dual-regulated firms, the PRA leads the assessment of applications for the approval of the PRA-designated SMFs. The authorisation of an individual to carry on PRA-regulated activities will not be granted unless both the PRA and the FCA are satisfied that the applicant meets the standards laid out in FSMA. The FCA is required to give its consent to the PRA before any final decision can be made on an application. More information on the application process can be found on the SMR submitting, amending, withdrawing or SIMR submitting, amending, withdrawing pages.