New data has shed light on the number of people who will have to register under the FCA’s senior manager’s regime when it is extended to advisers and all other financial services firms.
Figures provided to law firm Cleveland and Co show that currently, the senior managers regime covers just over 3,000 individuals. The FCA expects 72,000 individuals to be covered under the rules once they are rolled out further, a 20-fold increase.
The FCA outlined how it planned to extend the regime to all firms last month, with a reduced burden on some small firms. It expects the rules to come in by 2018.
Under the rules, individual advisers will have to be allocated key responsibilities and certify their competence every year.
Cleveland and Co managing director Emma Cleveland says that smaller firms could still face a “mountain to climb.”
She says: “The scale of the increase highlights the size of the task that many companies face.
“While the biggest companies with larger budgets should be able to handle the regulatory changes, it is smaller companies with the biggest mountain to climb.
“Understanding the rules and rolling out extra training – not just for senior staff – will take large chunks out of comparatively smaller budgets.”