Two thirds of IFAs have said they will still be looking for outside help and guidance before getting ready for December’s Senior Managers and Certification Regime deadline.
When the new rules come into play, top level staff will have to produce statements of responsibility for the elements of business they are in charge of, and ensure the competence of more junior staff on an annual basis.
In a series of workshops, support service provider Paradigm Consulting says that advisers were most keen to understand parts of the rules such as how wide duties of responsibility would be, and how the FCA could interpret “reasonable steps” to ensure accountability.
A need to train senior managers and certification staff prior to the new code coming in was also highlighted.
Paradigm Consulting head of proposition David Ryder says: “SMCR is one of the biggest changes that will affect IFAs in 2019 and, from speaking to people at our recent workshops, it will take more than one training session for firms to fully understand its intricacies.
“This is because SMCR is not really about ‘rules’, it’s more about the correct ethos and culture being applied from the top down within a business.
“The needs of every financial services business differs, so it’s vital firms take time now to understand the work required to ensure a plan for the new regulation is on track.”