The Financial Conduct Authority and Prudential Regulation Authority have launched a joint consultation to simplify the Senior Managers and Certification Regime, aiming to reduce regulatory burden while maintaining market integrity.

The proposed changes include extending timelines for approving new senior managers after unexpected departures, reducing duplication in certification roles by 15%, and offering clearer guidance on annual fitness and propriety checks.

The regulators also plan to clarify definitions of certain senior management functions, increase the validity window for criminal record checks, and ease reporting deadlines for updating responsibility maps and directories.

Nikhil Rathi (pictured), FCA chief executive, said: “Integrity and accountability at the top matter, which is why there is widespread support for the Senior Managers and Certification Regime. We are proposing streamlining the rules, so they work better for industry and support competitiveness and our approach to outcomes-based regulation, while maintaining the high standards the regime has set.”

Sam Woods, chief executive of the PRA and deputy governor for prudential regulation at the Bank of England, added: “High standards of accountability are important for maintaining confidence in our financial services industry. Today’s changes will reduce the burden of the Senior Managers and Certification Regime without diluting accountability, and we will work with the government on further reforms.”

The reforms follow a 2023 discussion paper and align with wider government plans to review the legislative framework underpinning the regime, including removing the Certification Regime altogether and narrowing the scope of functions requiring regulatory pre-approval.

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