HM Treasury has delayed the deadline by which firms in the UK that only the Financial Conduct Authority regulates must assess the fitness and propriety of their 'certified persons' for the first time in accordance with the Senior Managers & Certification Regime. It has moved the date from 9 December 2020 until 31 March 2021 to help firms that are affected by the Coronavirus.

To ensure that SM&CR deadlines remain consistent, and to provide extra time for the firms that need it, the FCA intends to consult the market about extending the deadline for the following requirements from 9 December 2020 to 31 March 2021.

• The date on which the Conduct Rules come into force.
• The deadline by which every firm must submit information about 'directory persons' to the register.
• References in FCA rules to the deadline for assessing 'certified persons' as 'fit and proper.' (The Treasury has agreed to this.)

Senior Managers must ensure that their firms inform staff about the FCA's conduct rules in an effective way. They must be aware of those rules and know how to apply them in their jobs. The FCA will publish further guidelines on the subject shortly.

Firms should continue with their efforts in these areas and they still ought to certify staff earlier than March 2021 if they can do so. They should not wait to remove staff who are not 'fit and proper' from certified jobs.

The Certification Regime does not apply to benchmark administrators, so the FCA does not intend to move the deadline for benchmark administrators.

Benchmark administrators have until December 2021 to train non-Senior Manager staff in the Conduct Rules. The FCA does not think that the current pandemic will prevent effective implementation of conduct rules training in these firms, and so it is not considering extending this deadline.

Mark Turner, the managing director of Duff & Phelps’ compliance and regulatory consulting team, told Compliance Matters: “The FCA has responded to the current situation by giving firms more time to implement the SM&CR. What this is not, however, is an invitation for firms and their staff and management to act in a way that is not compliant with the conduct rules. Senior managers are already accountable under the SM&CR and will remain so during this transition period. Any significant issues will find their way up to a senior manager when it comes to regulatory accountability.”