SMCR scope changes have major implications for enhanced and limited scope firms. This article outlines the latest updates, explains the impact, and provides practical steps for reducing the compliance burden in line with evolving FCA standards. Beyond SMFs and Certification, the consultations explore ways to make the overall SMCR less burdensome.
Key Proposals
- Thresholds for Enhanced SMCR scope will increase, so fewer firms fall into this most highly regulated category, reflecting inflation and market changes.
- Revised Management Responsibilities Maps (MRMs): Submission deadlines extended, processes made more proportionate, and timelines allowed to be more flexible.
- Directory reporting: Longer timeframes for updates, clearer guidance on what must be reported.
- Conduct rules under review: Possible removal of some of the legislative prescription, but conduct standards will remain.
- MRM, SoR, and Conduct Rules: Potential future reforms could further lighten administrative load, streamline submissions, and simplify obligations where risks are lower.
Other Notable Changes
- Work is underway to simplify Prescribed Responsibilities and further tailoring the approach to limited scope (smaller) firms.
- Parallel reviews and tweaks reflect a desire for SMCR outcomes without needless duplication or ‘one size fits all’ rules.
Summary for Firms
Larger firms may see a lighter touch for some aspects, while smaller firms may finally enjoy rules truly tailored to size and complexity. Getting ahead means refreshing your internal governance and SMCR mapping now — our specialist support is available for this.
