UK Chancellor’s Mansion House Speech: Points of Interest for FCA-Regulated Firms
Key announcements for FCA-regulated firms
1. Review of the Senior Managers Certification Regime (SMCR)
The Chancellor announced that the Treasury, the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA) will soon publish the results of their reviews of the SMCR. They plan to consult on removing the current Certification Regime to introduce a more proportionate approach that reduces costs and allows businesses to focus on growth.
2. Pay Deferrals Consultation
The PRA will consult on shortening pay deferral periods to help firms attract and retain talent.
3. FCA Handbook Review
The Chancellor said that she welcomed the FCA’s review of its Handbook, which is aimed at streamlining regulatory requirements by eliminating duplication.
4. Call for Evidence
The Chancellor announced a Call for Evidence to inform the development of the first Financial Services Growth and Competitiveness Strategy which the government plans to publish in Spring 2025. Key questions posed for industry input include:
- What is your assessment of the UK’s current regulatory environment?
- What are the barriers to setting up and conducting business as a UK asset manager or conducting wholesale services in the UK?
- In what ways could the regulatory landscape for asset management or wholesale services adapt to the needs of organisations over the next 10 years?
The deadline to respond to the Call for Evidence is 12 December, 2024. Those who have recently established FCA-regulated firms or work in smaller firms are encouraged to share their insights on the challenges faced by smaller businesses in setting up and operating regulated enterprises in the UK.
How Waystone can help
Waystone Compliance Solutions’ UK Solutions team has extensive experience in navigating the complexities of financial services regulatory requirements in the UK and globally. If you have any questions on the areas raised in this article, please reach out to your usual Waystone representative or contact us below.