Background ChecksThe Senior Management and Certificate Regime (SMCR)
The SMCR replaced the Approved Persons Regime. The reason SMCR was introduced is to make individuals within regulated firms more accountable for their conduct and competence. This regime is intended to not only improve standards but improve public trust in financial institutions.
Fitness and Propriety
Under SMCR, all FCA/PRA firms are required to assess their staff against the FCA’s ‘fit and proper’ test. This benchmark determines if staff are suitable to hold positions with significant control or influence within a regulated firm. Background checks are an essential part of this test.
Who does SMCR apply to?
- Senior Managers – This applies to anyone performing a Senior Manager Function
- Certified Persons – This applies to anyone who is not a senior manager, but their financial role could cause harm to the company or customers
- All staff under conduct rules who do not perform a specific role to financial services
SMCR Criminal Record Checks – Senior Managers
Under the SMCR in most cases individuals who are going to occupy a Senior Management Function undergo a standard criminal record check (which details both spent and unspent convictions).
SMCR Criminal Records Checks – Certified Persons
Certified persons are in most cases not eligible for standard criminal record checks and will only be eligible for a basic disclosure check that details unspent convictions. Although basic criminal record checks can be undertaken at the firm’s discretion, they are common industry practice and considered invaluable for assessing an individual’s integrity.
Employment Referencing Under The SMCR
A company wishing to appoint a Senior Manager, Certified Person or Non-Executive Director must seek references from any business where that individual has worked in the last six years. Furthermore, where that business is regulated by the FCA and or the PRA, such references should follow the format outlined in the FCA Handbook section SYSC 22.
Referees who are regulated by the FCA/PRA are required by the FCA to respond to such a request within six weeks
Typical Screening Checks for SMCR
At CV Insight we can assist you with the SMCR employment screening and have outlined below popular industry specific screening packages to consider:
UK Package – Non-Regulatory Roles
- identity document validation check
- credit and address check
- uk directorship check
- UK sanctions/anti-money laundering check
- highest education check
- professional qualification/membership check
- 5 years employment (gap analysis 90 days+)
- international adverse media check
- basic criminal disclosure
UK FCA Certified Persons
- identity document validation check
- credit and address check
- uk directorship check
- UK sanctions/anti-money laundering check
- fca register check
- highest education check
- professional qualification/membership check
- 6 years employment (gap analysis 28 days+)
- international adverse media check
- basic criminal disclosure
UK FCA & PRA Senior Manager Regime Package
- identity document validation check
- credit and address check
- uk directorship check
- UK sanctions/anti-money laundering check
- fca register check
- fca company check
- highest education check
- professional qualification/membership check
- 6 years employment (gap analysis 28 days+)
- international adverse media check
- standard criminal disclosure
If you require any additional information on the above, please contact our team on 0203 150 0775.
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