Nucleus, the advisor-built wrap platform, is circulating a white paper to help advisors in the United Kingdom finalise their preparations for the Senior Managers and Certification Regime.

Written by Phil Young, the managing partner at Zero Support, the white paper explains the new rules and the things that firms ought to do to comply before the SM&CR comes into force on 9 December.

SM&CR was originally introduced in 2016 to cover larger financial institutions and is now being rolled out to include financial advice firms. Its aim is to encourage positive culture and behaviour in financial services firms, delivered through changes in governance.

The guide covers the senior managers' rules, statements of responsibility, annual ‘fit and proper’ assessments and the conduct rules. It also looks at some of the wider implications of the SM&CR, including references, employment law and the jobs that firms ought to certify.

For companies that already have a positive culture and clear governance processes in place, the authors do not expect the new rules to be too onerous.

Phil Young has written: “Some of the issues are not new, but they do re-enforce some regulatory requirements [that] advisors may have missed previously. In particular, the changes to references and the use of compromise agreements are worth keeping an eye on.

“This guide has been written with advisers and planners in mind. The aims to change culture and behaviour appear optimistic, but the underlying requirements are not as daunting as some would have you believe.”